SATS EXPANDS IN CHINA WITH QUALITY PROMISE TO CAPTURE LARGER SLICE OF READY-TO-EAT MARKET

TIANJIN,China,April 14,2023 -- According to a report by global market intelligence company Mintel[1],the retail sales of frozen and chilled ready meals in China were expected to reach ¥243.8 billion (approximately US$35.4 billion or S$47.0 billion) in 2022,with an accelerated growth of 12.8% from 9.5% in 2021. This has led leading provider of food solutions and gateway services SATS Ltd. ("SATS") to strengthen its presence in China,with opening of a 21,553.13m2 central kitchen in Tianjin today.

Opening ceremony of SATS Tianjin central kitchen

SATS has built its reputation over the last 50 years,with customers ranging from leading air carriers,supermarkets,quick service restaurants and coffee chains to institutions such as corporates and schools. Under its "twin-engine" growth strategy,the Singapore-headquartered company is committed to strengtheningits competencies on home soil and replicating them overseas as it expandsglobally. This includesChina,where SATS has been operating for the last 30 years including in the food space,supported by central kitchens in Beijing,Kunshan and Nanjing as well as a product development and experience centre in Shanghai – all connected to the company's network of capabilities including the SATS Global Innovation Hub and upcoming SATS Food Hub.

The ¥219 million (equivalent to approximately US$31.83 million or S$42.23 million) investment in the latest central kitchen in Tianjin is a move to adapt to customers' evolving needs,by deploying the latest automation and technology as well as harnessing SATS' high food safety standards,international culinaryexpertise,and domain knowledge in food technology and research and development. The facility is strategically located between Beijing and Tianjin,enabling SATS to offer a wide variety of high quality meals to customers not just in the northern region but also the rest of China and beyond.

Kerry Mok,President and Chief Executive Officer of SATS Ltd.said,"Throughout our 50 years feeding and connecting communities,SATS has built a reputation for our quality and safety standards. On the food solutions front,our meals are always prepared in compliance with the most stringent safety regulations,and we are constantly on the lookout for technological innovations to help increase productivity and improve food quality. Through the SATS Tianjin central kitchen,we hope to leverage our know-how and capabilities to bring authentic global flavours to the Chinese communities."

[1] Mintel Reports China,Ready Meals,2022.