1. FOODFOOD

2. Company Background 1 Shinsegae Group CEO Byungryul Choi Employee1,070persons Capital W 17.1 billion Shares3,428,600 Par value W 5,000 MajorStockholder Shinsegae Co., Ltd. 53% BusiessAreasCateringRestaurants Food Supply Food Processing SHINSEGAE FOOD Chosun Hotel Chosun Hotel Chosun Hotel bakery Chosun Hotel bakery Starbucks Coffee Korea Starbucks Coffee Korea Sedex Sedex Shinsegae Mart Shinsegae Mart Shinsegae Chelsea Shinsegae Chelsea Shinsegae International Shinsegae International Family Food Family Food Green City Green City Chosun Hotel Chosun Hotel Chosun Hotel bakery Chosun Hotel bakery Starbucks Coffee Korea Starbucks Coffee Korea Sedex Sedex Shinsegae Mart Shinsegae Mart Shinsegae Chelsea Shinsegae Chelsea Shinsegae International Shinsegae International Family Food Family Food Green City Green City Shinsegae(Dept. E-Mart) Shinsegae(Dept. E-Mart) Gwangju Shinsegae Gwangju Shinsegae Shinsegae I&C Shinsegae I&C Shinsegae Engineering & Shinsegae Engineering & Construction Construction Shinsegae(Dept. E-Mart) Shinsegae(Dept. E-Mart) Gwangju Shinsegae Gwangju Shinsegae Shinsegae I&C Shinsegae I&C Shinsegae Engineering & Shinsegae Engineering & Construction Construction KOSPI Shinsegae Food Shinsegae Food KOSDAQ None

3. ~ 1995  1986.08 started the food supply biz  1992.01 started the catering biz 1995 ~ 2000  Belong to shinsegae  1995.07 spun-off from Shinsegae  1995.12 started the restaurants Biz  1996.08 started the banquet catering biz.  1999.01 expanded the business coverage nation-wide 2001 ~  2001.07 KOSDAQ listing  2003.01 incorporated Family Food & Co., Ltd.  2003.09 started the food processing biz  2004.01 completed the Distribution and Processing Center at Icheon Processing Center at Icheon  2005.12 completed the Distribution Center at Yeoju History 2

4. Specialized Food Service Provider total 400 Affiliate 120 Factories 119 Office 44 Government 17 Schools/Colleges 42 Hospitals 13 Etc. 25 Food Supply total 126 customers Restaurants total 44 Carnestation 5 Club House 8 Delia 30 Bonobono 1 Food Processing Food Processing Catering/ cafeteria Catering/ cafeteria Key Businesses (06.12.31) 3 total 26 Spicy Meat 26

5. Sales breakdown 4 2003Y 2004Y 2005Y 2006Y(E) Food Supply Catering Restaurants Food Processing Food Supply Catering Restaurants Food Supply Catering Restaurants Food Processing Food Supply Catering Restaurants Food Processing 55% 8% 35% 2% 68% 12% 11% 9% 68% 12 % 8% 56% 8% 36%

6. Long-term Plan 5 Specialized Food Service Provider Sales W1,000bn Pre-tax profit W85bn (2010) Catering Biz Catering Biz - Cafeteria - Catering and banquet service - Elderly/health food - W400bn sales target (2010) Restaurant Biz - Restaurant - Club Houses - Franchise - W150bn sales target (2010) Food Processing Biz Food Processing Biz - Marinated meat - Pre-handled/ semi-processed food - PB business - W250bn sales target (2010) ■ Business Plan by stages (2007~2010) Logistics and processing centers Sales network Establish core infrastructure Importing and distribution Food processing Focus on expanding M/S Business diversification Establish global sourcing base Food and food service specialist Emerge as market leader Food Supply Biz Food Supply Biz - Food wholesale and distribution - Overseas sourcing - Organic/Well-being food - W200bn sales target (2010) ※ The information contained in this forecast is estimated. The actual results may vary.

7. Sales Contract Food Restaurants Food Supply Food Processing Oper. Profit Recu. Profit Net profit Gross Profit 2004Y 260,067 144,041 90,866 20,474 4,686 12,230 11,556 8,368 24,328 2005Y 2006Y(E) % 235,419 161,011 27,565 27,769 27 26 24 19,074 48 14,870 32 14,940 34 11,191 34 25,518 20 % -9 12 36 -70 307 22 29 34 5 (unit : mn won, %) Recent Performance 2003Y 220,983 124,408 78,246 18,042 287 18,679 18,239 12,917 26,593 % 17 15 13 16 - -34 -36 -35 -8 6 2002Y 149,713 96,283 36,023 17,407 - 11,479 10,908 7,452 18,485 % 48 29 36 117 - 63 67 73 44 300,000 202,500 34,300 35,000 28,200 19,600 20,000 15,000 30,600 ※ The information contained in this forecast is estimated. The actual results may vary.