Comfort Clinched Another 150 Taxi Licences in Jilin

Following the Group's recent announcement on 27 September 2002 on its successful tender for 180 taxi licences to run taxis in Jilin City, Jilin Province, People's Republic of China, Comfort (China) Pte Ltd managed to clinch another 150 taxi licences through a recent public tender. This brings the total number of taxi licences secured to 330.

Comfort China has entered into a joint venture with吉林市康运经贸有限责任公司 ("康运") for the establishment of a joint venture enterprise to be known as "Jilin Comfort Transportation Co Ltd" ("JVE") to carry out taxi rental business in Jilin City.

The JVE will have a registered capital of Rmb 21 million (or S$4.67 million). Comfort China will hold 95 percent of the total registered capital of the JVE whilst 康运 will hold the remaining 5 percent.

The said investment, which will be financed from internal resources and/or bank borrowings, is not expected to have any material impact on the consolidated net assets per share and earnings per share of Comfort Group Ltd for the financial year ending 31 March 2003.

Depending on market conditions and demand for taxi services in Jilin City, the JVE plans to expand its taxi fleet in the next few years by securing more taxi licences through acquisition and public tender.

To date, the Comfort Group has 5 joint venture companies in various parts of China namely, Suzhou, Xiamen and Zhengzhou, to operate land transport-related businesses. Following the recent allocation of 300 taxi licences by Guangxi Nanning Communications Bureau to Comfort China, Comfort China will also set up a new joint venture enterprise in Nanning to operate taxi services. Registration of a new joint venture enterprise in Jilin to operate taxi services is also in progress.

This media release is also available at Comfort's website: www.comfortgroup.com.sg

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The Business Times