(14 June 2010 – Hong Kong) New World Department Store China Limited ("NWDS" or the "Company"; Hong Kong stock code: 825), one of the largest owners and operators of department stores in the PRC, is pleased to announce that a number of NWDS's stores have been organizing various promotional activities after the inauguration of exclusive brand strategy last month, driving more customers to our stores, as well as creating the fashion trend and providing customers with personalized shopping environment.

"N-only" means "the exclusive brands / products can only be found in ‘Fashion Gallery' and ‘Living Gallery' of NWDS within the located district".

To enable customers to differentiate the NWDS's exclusive brands easily, the symbol of "N-only" was specially designed and stuck on NWDS's exclusive brands/products, so that customers can easily connect the symbol of "N-only" with NWDS, standing out in the keen competitive China department store industry.

The first stage of "N-only" program has been carrying out more than a month, 5 stores are currently implementing this program, including Harbin New World Department Store ("Harbin Store"), Beijing New World Liying Department Store ("Beijing Liying Store"), Wuhan New World Department Store – Qiaokou Store ("Wuhan Qiaokou Store"), Wuxi New World Department Store ("Wuxi Store") and Kunming New World Department Store ("Kunming Store"). The stores held numerous promotional activities in order to build a thorough image of "N-only", cultivating customers to recognise the symbol of "N-only" with NWDS's exclusive brands/products, so that it will become a unique signature of NWDS.

A series of activities were organized to promote our exclusive brands in different stores last month. Wuhan Qiaokou Store organized an "Exclusive Brands Fitting Day" event, customers who came to the designated exclusive brand counters for a fitting were entitled to a souvenir. "Selected Exclusive Brands Campaign" was also launched so as to further strengthen the "N-only"program, customer could enter a lucky draw to win the attractive gift with any RMB 800 of purchase. "Mini Opening Cocktail" providing coffee, red wine and chocolate together with special discounts and gifts to the "N-only" customers was held in Kunming store in order to promote the exclusive brands. Wuxi Store also launched a variety of offers by distributing the"N-only" coupons in "Pretty Mothers' Week" . Moreover, customers can obtain the latest information of exclusive brands by viewing our "N-only" electronic catalogues (http://www.nwds.com.hk/html/eng/nOnly/nOnly.aspx), inspiring them to create their personalized image. In addition, the stores provided customers with the latest information of exclusive brands by publishing "N-only" catalogues, posting instore advertisements, as well as promoting via newspapers, posters, email and SMS.

Mr. Adrian Cheng, Executive Director of NWDS, the Chief of this "N-only" program said, "China is a huge market with enormous business opportunities whilst merchandise mix is an essential factor for standing out in the keen competitive department store industry. We hope that customers can become the pioneers of trend by purchasing the extraordinary brands/products in NWDS. The effectiveness of ‘N-only' program is satisfactory after the inauguration last month. Year-on-year sales growth of some selected exclusive brands under intensive promotion increased over 50% during the promotion period, manifesting an encouraging result. Exclusive brand strategy is a part of the rebranding program, aiming to demonstrate the trendsetting style of Mix & Match. Customers can originate their fashion personality, encouraging a new way of living with personalized elements and attitude. Exclusive brand strategy also attracts customers to come shopping on a regular basis as a number of brands / products can only be found in NWDS within the located district, not only increasing the traffic flow, but also strengthening the loyalty of customers. In future, we will continue to launch different kinds of promotional strategies and activities in line with the rebranding program, so as to consolidate the unique positioning of NWDS in the market."

"N-only" program will be implemented in different stores in phases with details below:

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