FOOD JUNCTION PROPOSED ACQUISITION OF MALONE'S AMERICAN CAFÉ CHAIN IN SHANGHAI, PRC; FURTHER EXPANDS ITS RESTAURANT BUSINESS
- Move is in line with Food Junction's expansion into restaurant business
- Acquisition expected to be earnings accretive upon completion

SINGAPORE, 8 May 2008 - Catalist-listed Food Junction Holdings Limited and its subsidiaries ("Food Junction" or the "Group"), a specialised food and beverage service management Group, today announced its proposed acquisition of the Malone's American Café ("Malone's") chain of 3 restaurants (2 owned and 1 franchised) located in Shanghai, People's Republic of China ("PRC").

Food Junction had signed a Conditional Sales & Purchase Agreement to acquire Malone's for a purchase consideration of RMB 48 million (equivalent to S$9,347,250) to be satisfied 50% by issuance of new Food Junction shares and 50% by cash.

Malone's in turn guarantees to Food Junction that its post-acquisition consolidated audited profit after tax for the first 18 months of operations after acquisition shall be at least RMB 14.3 million.

Malone's (www.malones.com.cn) was established in Shanghai since 1994 and offers an American style restaurant cum pub concept to its expatriate customers and locals. The restaurants boast large screen TVs where sports programmes are aired, and live band entertainment. The food menu includes extensive breakfast, lunch, brunch and dinner varieties ranging from Western to Asian foods including traditional American soups, salads, hamburgers, sandwiches, Tex-Mex, steaks and chops and mee goreng, nasi goreng and chicken noodle.

Commenting on the acquisition, Mr. Andrew Fu, Managing Director of Food Junction, said," The acquisition is in line with our strategy of expanding into the restaurant business both in Singapore and the region. Malone's has an established operating history and is a favourite haunt for expatriates and locals alike in Shanghai. We will capitalise 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.

In addition, Malone's management team is passionate and committed to its business. This is a very important element in the acquisition and in line with Food Junction's culture". He added.

Malone's has a franchise agreement for two outlets to open in 2008 and another two in 2009 for China. The first outlet recently opened at Thumb Plaza in Pudong, Shanghai to serve the expatriate and local communities working and living in the western part of the city.

Malone's also recently opened its first Malone's Casual Diner in Pudong, Shanghai.

Food Junction expanded into the restaurant business earlier this year with the opening of "TETSU" in Tanglin Mall, which offers Tempura and Tonkatsu menu under one roof.

With the acquisition, Food Junction will have an immediate presence in Shanghai with three restaurants and more in the pipeline. The acquisition upon completion by 31 July 2008 is expected to be earnings accretive for Food Junction.

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 66 F&B stalls, out of the 228 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 1st Japanese TETSU restaurant in January 2008.

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