FOOD JUNCTION REPORTS TURNOVER OF S$10.7M FOR 2QFY2008
- Complete make-over of Junction 8 and Lot 1 CCK food courts
- Opened second franchised Rakeru Omelette stall
- Opening second Indonesia food court in Sept 2008
- Proposed Acquisition of Malone's American Restaurant chain

SINGAPORE, 13 May 2008 - Catalist-listed Food Junction Holdings Limited and its subsidiaries ("Food Junction" or the "Group"), a specialised food and beverage ("F&B") service management Group, today announced that its revenue for the quarter ended 31 March 2008 ("2QFY2008") maintained at S$10.7 million in comparison to 2QFY2007 despite lower turnover from Bishan Junction 8 food court's 2 months closure in the quarter due to upgrading.

FY2008 continues to be a challenging year for Food Junction with increasing rentals, labour and food costs while at the same time recognizing the need to upgrade its existing food courts to maintain its competitiveness.

In the recent months, the Group upgraded Bugis Junction and Great World City food courts, while in 2QFY2008, Junction 8 and Lot 1 food courts also underwent upgrading works. Junction 8 food court reopened on 24 March 2008 and Lot 1 food court on 26 April 2008. These contributed to the lower Profit after tax in 2QFY2008.

Commenting on the Junction 8 food court, Mr. Andrew Fu, Managing Director of Food Junction, said, "Junction 8 after a complete makeover showcases a "hip" and trendy interior. We also opened our second franchised Rakeru Omelette Rice stall in this newly renovated food court. Both the food court design and Omelette Rice have been very well received."

In Indonesia, the Group operates its first food court since July 2007 at Universitas Pelita Harapan in Lippo Karawaci. On 9 Apr 2008, the Group announced the acceptance to operate its second food court in Indonesia at Megamal Pluit Shopping Centre in North Jakarta. This food court is expected to open for business in September 2008. Food Junction on 8 May 2008 announced its proposed acquisition of the Malone's American Café ("Malone's") chain of restaurants located in Shanghai, PRC. Malone's currently operates 3 outlets - 2 owned (Tongren Road and Pudong) and 1 franchised (Thumb Plaza, Pudong). Malone's has a franchise agreement for 4 outlets, 1 already opened, 1 more to be opened in 2008 and 2 in 2009.

With the acquisition, Food Junction will have an immediate presence in Shanghai and by the end of 2009 Malone's is expected to have 6 restaurants in China.

Upon completion of the Acquisition (target date 1 July 2008), a total profit after tax of RMB14.3 million (approximately S$2.8) is guaranteed to Food Junction for 18 months post acquisition.

Commenting on the Acquisition, Mr Andrew Fu, " The acquisition is in line with our strategy of expanding into the restaurant business both in Singapore and the region. Malone's had an established operating history and is a favourite haunt for expatriates and locals alike in Shanghai. We will capitalize on Food Junction's expertise in food and beverage service management and Malone's experience in restaurant operations in Shanghai to produce synergies in terms of service levels and operating efficiencies and also to expand further in Asia."

On our expansion, Mr Andrew Fu commented, "Food Junction continues to actively seek new food court sites in Malaysia, Indonesia and China to expand our business. We will also be looking at other ways to expand into food related businesses."

About Food Junction Holdings Limited

Food Junction has been established for more than 14 years. To-date, Food Junction manages and operates a total of 16 food courts: 12 in Singapore and two in Malaysia, one in Indonesia and one in China. It also self-operates 68 F&B stalls, out of the 237 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 including the opening of a premium gift boutique in Singapore. The Group has also moved into restaurant operations with the opening of its first Japanese TETSU restaurant in January 2008.

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