The Directors of BreadTalk Group Limited ("the Company") wishes to announce that Megabite Hong Kong, a 85% owned subsidiary of Topwin Investment Holding Pte Ltd, ("Topwin") which in turn is a wholly-owned subsidiary of the Company, has increased its issued and paid-up share capital from HK$3,000,000 divided into 3,000,000 shares of HK1.00 each to HK$5,000,000 divided into 5,000,000 shares of HK1.00 each by an allotment of 2,000,000 new shares of HK$1.00 each to its existing shareholders, satisfied in full by the capitalization of their shareholders' loans to Megabite Hong Kong.
Topwin and the other minority shareholder, Mr Jenson Ong Chin Hock ("Jenson") have previously granted shareholders' loans to Megabite Hong Kong in the sum of HK$1,700,000 and HK$300,000 respectively.
Accordingly, Topwin and Jenson have been allotted 1,700,000 shares and 300,000 shares of HK$1.00 each in the share capital of Megabite Hong Kong, credited as fully paid in satisfaction of their respective shareholders' loans to Megabite Hong Kong
In addition, Topwin and Jenson have also each granted another interest free loan of HK$1,275,000 and HK$225,000 respectively, with no fixed terms of repayment to Megabite Hong Kong to fund its business expansion.
Save as disclosed above, the transaction is funded by internal resources and is not expected to have any material impact on the earnings per share and net tangible assets of the Company and the Group for the financial year ending 31 December 2007.
This investment does not constitute a discloseable transaction under the provisions of Rule 1010 of the Singapore Exchange Securities Trading Limited's Listing Manual.
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect in the above transaction.
BY ORDER OF THE BOARD
Tan Cher Liang
17 May 2007