New World Department Store China Limited (“NWDS” or the “Company”; Hong Kong stock code: 0825), one of the largest owners and operators of department stores in the PRC, is pleased to announce its strong retail sales performance for the three months ended 31 March 2008. The Group’s overall same store sales growth reached 27%* during the period, demonstrating a robust growth.

For mature stores with more than three years of operation, the same store sales growth rate still maintained at a fairly high level of 21%* during the first quarter. Meanwhile, the Wuhan Store, the Company’s first department store in the PRC, posted a same store sales growth rate of 20%* after having operated for fourteen years. This managed store was converted to a self-owned store in February this year.

Mr. Adrian Cheng, Executive Director of NWDS, said, “Despite the serious snow storm effect in the first quarter of 2008, our stores still maintained a strong same store sales growth. This reflected a continuous trend of positive consumption sentiment in the Mainland. We are also delighted to witness a 20%* same store sales growth rate for the Wuhan store which has been in operation for fourteen years. The sustainable growth in mature stores with more than three full years of operation is also an encouraging sign for the Company’s future growth potential. We will continue our efforts in growing existing store sales while exploring new projects to capture the business opportunities offered by the booming PRC market.”

Mr. Philip Cheung, Executive Director and Managing Director of NWDS, added, “We foresee that the positive impact of Beijing Olympics will generate another growth wave for the retail sector in the PRC. As the Company continues to expand its business in high growth cities across the nation, it is well positioned to be a dominant player in the industry.”

*Unaudited figures 

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