FOOD JUNCTION POSTS TURNOVER OF S$45.3 MILLION AND PROFIT BEFORE TAX OF S$4.1 MILLION FOR FY2008

• Food Junction upgraded to Mainboard on 28 October 2008
• 3% growth in Group Turnover
• Profit decline due to higher costs & new business setups
• Overseas expansion with acquisition of Malone's Restaurant chain in PRC and opening 2 more food courts in Malaysia and Indonesia
  

Singapore, 12 November 2008 - Mainboard-listed, Food Junction Holdings Limited and its subsidiaries ("Food Junction" or the "Group"), announced today that its Group Turnover for the financial year ended 30 September 2008 ("FY2008") was approximately S$45.3 million, a 3% growth from previous financial year.

As at 30 September 2008, the Group operated and managed 16 food courts over 4 countries namely in Singapore, Malaysia, China and Indonesia, and 59 self-operated F&B stalls out of a total of 227 stalls. The Group also operates a Japanese Restaurant and a Gourmet Gift Boutique.

The Turnover growth was attributed to higher turnover from Food & Beverage ("F&B") operations from F&B self-operated stall sales and sales from new Japanese restaurant "TETSU" and gourmet gift boutique "kokoro", offset by lower turnover from food court operations due to the temporary closure of food courts at Great World City and Junction 8 for renovations.

Food Junction posted a profit before tax of approximately S$4.1 million for FY2008, a 39% decline from approximately S$6.7 million in financial year ended 30 September 2007 ("FY2007"). This was due to higher depreciation charges, higher rental and operating expenses for the Food Court segment, higher cost of sales from food price increases for self-operated stalls, one-time consultancy fees and set-up costs for new F&B concepts for the F&B segments.

In FY2008, the Group renovated its existing food courts at Great World City and Junction 8 into lifestyle food courts with modern and trendy ambience. The Group also relocated its Lot 1 food court from Basement 1 to Level 4 of the Mall with a modern country park design to be in line with the Mall's new theme.

Commenting on the expansion plans for the food court segment, Managing Director, Mr Andrew Fu, said, "Though food court business is facing tough challenges from high rentals, renovation and electricity costs, we are still committed to deliver a unique dining experience and ambience for our customers and continue to expand our presence in the region.

From 2007 to 2008, we invested sensibly to renovate food courts at Bugis Junction, Great World City, Junction 8 and Lot 1 to trendy lifestyle food courts to stay ahead of our competitors.

Right now we have 3 outlets under renovation across Singapore, Malaysia and Indonesia. At Raffles City, we are changing to a modern and stylistic food court to operate under a new brand name called "The Food Place". The outlet is expected to open in early December 2008.

The other 2 new outlets in Malaysia's Mid Valley City (KL) and Indonesia's Megamal Pluit (Jakarta) will be operational by December 2008 too. The Malaysia outlet will operate as a new food concept under a new brand name "Food Garden". Besides these 2 new sites, we will continue to look for more suitable sites to expand our businesses."

In FY2008, the Group expanded its F&B segment from self-operating F&B stalls in food courts to operations of restaurant and gourmet gift boutique. This was part of the Group business strategy to expand its business from mass food court market to lifestyle F&B market.

To expand into F&B lifestyle market and also into overseas market, Food Junction has acquired a PRC restaurant chain, Malone's American Café ("Malone's") in October 2008. Malone's was established in 1994 and offers an American-style restaurant-cum-sports café concept targeted at both expatriates and local customers' palates. Malone's currently operates 2 restaurants in Shanghai, PRC. The main restaurant located at Tongren Road is owned and self-operated for the last 15 years. In April 2008, Malone's started its first licensed outlet at Thumb Plaza in Pudong, Shanghai.

Commenting on Malone's, Mr. Andrew Fu, said, "The existing management team at Malone's is committed to expand the business and intends to open more outlets both in PRC and the region. The acquisition of Malone's has allowed Food Junction an immediate foothold into Shanghai's exciting and vibrant F&B market ".

Despite the ongoing financial crisis, Food Junction is still committed to grow its businesses with extra care and caution.

About Food Junction Holdings Limited

Food Junction has been established for 15 years. To-date, Food Junction manages and operates a total of 16 food courts: 12 in Singapore and 2 in Malaysia, 1 in Indonesia and 1 in China. It also self-operates 59 F&B stalls, out of the 227 stalls in the Group's food court business.

As a food court management specialist, Food Junction manages the operational aspects of its food courts and food stalls, ranging from cash collection services to dish collection, dish washing, cleaning and general maintenance. To enable tenants to stay focused on food quality and services, an operations team is stationed at each food court to ensure smooth day-to-day running of the food courts as well as the food stalls. The Group also handles the marketing and tenant mix of each food court, and handles the advertising and promotion of the food courts to create greater awareness.

Food Junction has expanded into lifestyle concept with the upgrading of existing food courts and introducing new F&B concepts. The Group has also moved into restaurant operations with the opening of a Japanese restaurant in January 2008 and recently acquired Malone's American Café, a Shanghai based restaurant chain.

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