Mr. Stanley Ma reports

MTY ENTERS INTO AN AGREEMENT TO ACQUIRE THE ASSETS OF MANCHU WOK, WASABI GRILL & NOODLE AND SENSEASIAN

MTY Food Group Inc.'s wholly owned subsidiaries MTY Tiki Ming Enterprises Inc. and MTY Franchising USA Inc. have entered into a binding agreement to acquire the assets of a group of companies that own and operate the Manchu Wok, Wasabi Grill & Noodle and SenseAsian restaurants mainly in Canada and in the United States. The total consideration for the transaction is expected to be $7.9-million, paid from MTY's cash on hand.

There are currently 133 stores in operations, 114 of which are franchised and 19 corporately owned. Of the 133 stores, 51 are located in the United States, including five corporately owned locations. During its most recent completed fiscal year, the network generated approximately $95-million in system sales.

"Manchu Wok is an iconic brand in the ethnic food category and has a long history of success," said Stanley Ma, chief executive officer of MTY. "We are very proud and excited to have the opportunity to add Manchu Wok, as well as Wasabi Grill & Noddle and SenseAsian, to our portfolio of brands. The addition of Manchu Wok will further increase our presence in Canadian food courts and will add to MTY's nascent franchise network in the United States."

The closing of the transaction is scheduled to happen on or before Dec. 16, 2014, and remains subject to several closing conditions, as well as to standard regulatory approvals. Following the closing of the transaction, the operations of the franchisor will be relocated in MTY's offices in Richmond Hill, Ont.