ETIKA ENTERS FAST FOOD SEGMENT WITH “TEXAS CHICKEN” FRANCHISE

Etika makes maiden entry into Fast Food Segment with “Texas Chicken” franchise

Etika International Holdings Limited (“Etika”) wishes to announce that its wholly-owned subsidiary, Texas Chicken (Malaysia) Sdn Bhd (formerly known as Elite Cafe Sdn Bhd), has signed an International Multiple Unit Franchise Agreement (“Agreement”) with US-based Cajun Global LLC to develop and operate “Texas Chicken” restaurants over the next 10 years, from 2013 to 2022. The Agreement awards exclusive rights to Etika to develop “Texas Chicken” in the country of Malaysia and the nation of Brunei.
The restaurants will serve American-styled, big juicy full-flavoured fried chicken, french fries, mashed potatoes, coleslaw, onion rings, burgers, Honey-Butter biscuits and sundae, to name a few.
Chairman, Dato’ Jaya said, “We are so excited to be taking the brand to Malaysia and to Brunei. The Malaysian and Bruneian markets represent a vast and growing fried chicken segment with many opportunities to enhance growth as the products are readily accepted.”
Group CEO, Dato’ Kamal Tan added, “We were looking to add a high-quality, branded chicken restaurant chain to expand our current portfolio and also to tap on the synergistic opportunities of the Group’s existing frozen food as well as beverage products. With more than 1,700 locations worldwide spanning 22 countries and system sales exceeding US$1.2 billion, “Texas Chicken” is a strategic fit for us as they have global brand recognition, a streamlined operating system and experienced support teams.

To spearhead the business in this new segment, Etika has appointed franchise industry veteran, Mr Ng Su Onn, as our General Manager. We are confident that Mr Ng, a former Managing Director of 7-Eleven Malaysia and Executive Vice-President of McDonald’s Malaysia, will help us to achieve our goal through his proven track record, exceptional leadership, performance and results.
This downstream expansion is also part of our growth strategy to increase the presence of Etika Group’s identity and brand in key markets such as Malaysia and its neighboring countries in Asia.”
In Malaysia, the Group will roll out the franchise model through its own stores and plan to open them in well-populated areas with high traffic volume, as well as tourism hotspots. The first restaurant is scheduled to open in Klang Valley by December 2012.

By order of the Board
ETIKA INTERNATIONAL HOLDINGS LIMITED
DATO’ KAMAL Y P TAN
Group Chief Executive Officer
10 July 2012