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FINAL RESULTS HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2005

FINAL RESULTS HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2005. Group Financial Highlights For the Year Ended December 31, 2005. Selected Financial Highlights & Ratios For the Year Ended December 31, 2005. Divisional Highlights For the Year Ended December 31, 2005.

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FINAL RESULTS HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2005

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  1. FINAL RESULTS HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2005 2005 Final Results - Giordano

  2. Group Financial Highlights For the Year Ended December 31, 2005 2005 Final Results - Giordano

  3. Selected Financial Highlights & RatiosFor the Year Ended December 31, 2005 2005 Final Results - Giordano

  4. Divisional HighlightsFor the Year Ended December 31, 2005 2005 Final Results - Giordano

  5. Retail & Distribution Division For the Year Ended December 31, 2005 Singapore 10%(10%) Taiwan 18%(19%) Hong Kong 22%(22%) Others 19%(19%) Mainland China 25%(25%) Note: 2004 figures in brackets Australia 6%(5%) Retail & Distribution Turnover Composition by Market 2005 Final Results - Giordano

  6. Retail & Distribution Division For the Year Ended December 31, 2005 Bluestar Exchange 8%(8%) Giordano Ladies 5%(4%) Giordano core line + Junior 87%(88%) Note: 2004 figures in brackets Retail & Distribution Turnover Composition by Brand 2005 Final Results - Giordano

  7. Retail & Distribution Division For the Year Ended December 31, 2005 Brand Statistics Total comparable store sales - 0.5% Total comparable store gross profit + 0.9% ASP increased for all three brands 2005 Final Results - Giordano

  8. Retail & Distribution Division Market Review – Mainland China • Late winter hurt sales in 4Q05. • Full year sales up 4%; sales per sq. ft. held constant. Overall ASP increased. • All brands posted gross margin improvements. • Added 35 outlets in 2005. • Plans to add about 40 outlets in 2006 (30 Giordano and 10 Bluestar). • * Includes all outlets • ** Includes directly managed outlets only 2005 Final Results - Giordano

  9. Retail & Distribution Division Market Review – Hong Kong • Sales up 7%; sales per sq. ft. grow4%. • All three brands achieved ASP increases. • Overall gross margins stayed relatively unchanged. • Added nine outlets in 2005. • Planning to add image store in Mongkok and renovate Causeway Bay flagship. • Also planning first Giordano Ladies airport store. 2005 Final Results - Giordano

  10. Retail & Distribution Division Market Review – Taiwan • Sales up 4%; sales per sq. ft. up3%. • Deteriorating consumer confidence hurt sales. 2H05 sales down 6.8% YOY. • All brands showed gross margin and ASP improvements. • Net addition of one outlet in 2005. • Consumer sentiment remains weak due to negative household income growth and consumer credit crunch. 2005 Final Results - Giordano

  11. Retail & Distribution Division Market Review – Singapore • Sales up 3%; sales per sq. ft. down 5% and comp store sales down 1%. • Gross Margins and ASP held steady. • Added one store in 2005. • Plans to open second Giordano Ladies store in 2006. 2005 Final Results - Giordano

  12. Retail & Distribution Division Market Review – Other Group Markets • As a group, these markets achieved the 12% YOY sales growth, better than our main markets. • Australia sales up 18% with 10 stores added, including first Bluestar store. • For Southeast Asia, sales growth mainly due to new store openings. Malaysia: 4; Indonesia: 17; Thailand: 11. • Japan further narrowed its loss in 2005. Target to break even in 2006. 2005 Final Results - Giordano

  13. Retail & Distribution Division Market Review – Non-group Markets • Sales up 11.2% year-on-year in South Korea. Sales down 0.9% in local currency terms. 4 store closed in 2005. • Middle East sales up 15.3% year-on-year in 2005. 18 stores added in 2005. 2005 Final Results - Giordano

  14. Retail & Distribution DivisionNumber of Outlets, by Region and by Brand 2005 Final Results - Giordano

  15. Garment Trading & Manufacturing Division For the Year Ended December 31, 2005 • 60.6% of divisional sales to Group companies, down from 68.0% in 2004. • Operating margin declined by 0.6% because of increased competition. • Transitioning from an OEM to ODM model to cement customer relationships and grow sales and margins. 2005 Final Results - Giordano

  16. Outlook General • Continuing concerns about high oil prices, rising interest rates and possible outbreak of avian flu. • Erratic weather negatively affected sales in Feb 2006. • Group turnover for the first two months of 2006 showed high single digit YOY decline. • Situation improved in March, and inventory remains healthy. • We will focus on enhancing merchandising and customer care. • Targeted merchandising to enhance comp store sales. • World Without Strangers global CRM program to enhance customer loyalty.

  17. Outlook • Hong Kong • Strategic new store openings (HK Airport, Mongkok and Macau) and refurbishment of Causeway Bay flagship to strengthen market presence. • Sponsorship of 30th HKIFF to enhance brand image. • Focus on organic growth • Mainland China • Growth through new store openings (40) and comp store sales growth • Grow wholesale turnover with better merchandising 2005 Final Results - Giordano

  18. Outlook • Taiwan • Consumer confidence weakened by negative household income growth and credit crunch • Increased cross-strait tensions • Focus on operations • Singapore • Second Giordano Ladies store planned for 2006 2005 Final Results - Giordano

  19. Outlook • South Korea • Slow and erratic recovery of retail sector. • Continued focus on gross margin enhancement and cost controls in light of uncertain prospects. • Plans for 10 new stores in 2006. • India • Open first Giordano store in 2Q06 • Measured store roll-out plan with 2-3 store openings in 2006 and a similar number in 2007 • More aggressive roll-out after we have gained market knowledge and experience 2005 Final Results - Giordano

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