FOOD JUNCTION PENETRATES LUCRATIVE SHANGHAI RESTAURANT MARKET THROUGH MAIDEN ACQUISITION OF MALONE'S AMERICAN CAFÉ CHAIN FOR RMB 48 MILLION; UNDERSCORES THE GROUP'S EXPANSION INITIATIVES INTO THE GREATER CHINA MARKET

• Groundbreaking foray into the restaurant chain business in PRC in line with the Group's expansion strategy to grow the restaurant line
  
• Acquisition leverages on synergies with other operations to drive the Group's overseas expansion in China, Malaysia and Indonesia

SINGAPORE, 30 September 2008 - Catalist-listed Food Junction Holdings Limited and its subsidiaries ("Food Junction" or the "Group"), a specialised food and beverage service management Group, announced today that it has completed the acquisition of Malone's American Café ("Malone's") - a Shanghai based restaurant chain - for a total consideration of RMB 48 million (or approximately S$ 9.3 million).

Malone's was established in 1994, and offers an American-style restaurant-cum-pub concept targeted to suit both expatriate and local customers' palates. Its restaurants feature live music and large-screen TVs airing sports programmes. Customers can have their pick from Malone's extensive selection of breakfast, lunch, brunch and dinner menus which boast over 180 items of Asian and Western set meals. Its dinner menu features traditional American pub grub, including over 30 varieties of burgers. Aside from large-screen TVs, screen projectors and pool tables, patrons can enjoy the best in live music every night of the week.

It currently operates 2 restaurants in Shanghai, namely 1 self-operated outlet for the last 14 years in Tong Ren Road, Puxi and 1 licensed outlet opened in April 2008 at Thumb Plaza, Pudong. Malone is targeted to add more self-operated and licensed outlets by end of calendar year 2009.

Malone's 14-year lifespan is unprecedented amongst foreign-owned restaurants in Shanghai. Its winning formula comes from a combination of consistently good food, drinks, great live music and service with a smile.

The purchase consideration of RMB 48 million was arrived at on a willing buyer-willing seller basis, and will be satisfied 50% by a RMB 24 million cash payment and 50% by the issue of 9,347,250 new Food Junction shares at the agreed price of S$0.50 per share. Food Junction has obtained a RMB 14.3 million after-tax profit guarantee for the first 18-months of post acquisition operations.

Commenting on the acquisition, Managing Director of Food Junction Mr. Andrew Fu said, "We are pleased to gain an immediate foothold into Shanghai's restaurant scene by tapping onto Malone's 14 years' presence in PRC, and it's extensive experience and skills in restaurant operations as well as their established branding. The acquisition of Malone's is another step forward for Food Junction in its efforts towards expanding its presence in China."

About Food Junction Holdings Limited

Food Junction has been an established in the food and beverage service management industry for more than 14 years. To date, the Group manages and operates a total of 16 food courts: 12 in Singapore, two in Malaysia, one in Indonesia and one in China. It also self-operates 59 F&B stalls, out of the 227 stalls operating 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 service, 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 handles the marketing and tenant mix as well as the advertising and promotion of the food courts to create greater awareness.

Food Junction has expanded into lifestyle concepts with the upgrading of existing food courts and introduction of new F&B concepts in Singapore including the opening of a Gourmet Boutique named "KOKORO" and a Japanese restaurant named "TETSU".

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