Business as usual at Ch’ien Men 23 and Legation Quarter Ltd.

Legation Quarter Ltd. and its controlling shareholder, HKC (Holdings) Ltd has adamantly denied claims made in Aqua's recent press release concerning the circumstances surrounding the impending closure of their restaurant at Ch'ien Men 23. The following is Legation Quarter Ltd.'s official press release:

"Legation Quarter Ltd. has been promoting Ch’ien Men 23 as Beijing’s premier fine dining complex, which is widely recognized by the public’s patronizing of Maison Bouloud, Ristorante Sadler, Meat & Wine and Zen.

It is regretful that Aqua has not paid its license fees to Legation Quarter Ltd. since late 2008, immediately after they had enjoyed the 16-week license-fee free period granted to them by Legation Quarter Ltd. under the license agreement.

Aqua has nevertheless used Legation Quarter Ltd.’s premises to conduct business in its restaurants and bars for over a year, continuing to disregard our repeated requests to honor their obligations and pay the long overdue license fees.

As a consequence of Aqua’s delinquency, Legation Quarter Ltd. has commenced legal proceedings in the People’s Court in Beijing to recover the overdue payments, but still Aqua has refused to pay the long due license fee.

Legation Quarter Ltd. was left with no alternative but to issue, on November 17th 2009, a notice to Aqua to terminate the license agreement with immediate effect and have allowed them 2 weeks time to take proper measures before Legation Quarter Ltd. stopped the electricity supply to the premises as a consequence of the termination of the license agreement. At the expiration of the 2 weeks time, Legation Quarter Ltd. has still, as a gesture of goodwill and upon the request of Aqua, provided electricity to the premises for a short period to allow them to remove their perishable items. Aqua’s considering such a gesture as ‘harassment’ exactly reflects their irresponsible and ungrateful attitude towards Legation Quarter Ltd.

In short, the closure of Aqua is due to its inability, or unwillingness, to pay the license fee for ‘Ch’ien Men 23’ and Legation Quarter Ltd. is now seeking legal advice in respect of Aqua’s irresponsible and untrue press release."