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 its acquisition of the property of Shenyang New World Department Store – Nanjing Street Branch Store (“Shenyang Nanjing Street Branch Store”).

The total consideration of the acquisition amounting to HK$270 million, will be funded by internal resources. The four-storey Shenyang Nanjing Street Branch Store covers a gross floor area of approximately 13,890 square meters in the most popular shopping district of Shenyang.

Being the capital city of Liaoning Province, Shenyang is the transportation and industrial hub of North-eastern China. Its retail sales from January to November 2007 reached RMB112.7 billion*, posting a strong annual growth of 17.3%*. The massive consumption power and the rapid economic development offer a huge development potential in the city.

Mr. Adrian Cheng, Executive Director of NWDS, said, “The Company envisioned the huge business opportunity offered by the three provinces in North-eastern China ever since 1995. It therefore opened the first department store in the same year, in which its property became the target of this acquisition. This acquisition demonstrated the Company’s confidence on the future development prospect of North-eastern China. It also laid a solid foundation for the Company to extend its footholds in the region and to enjoy the synergy. Coupled with the PRC government’s development strategy in Pan Bohai Rim, Shenyang is expected to capitalize on the business opportunities brought by the booming economy. We see this an opportune time to enhance our presence in the region.”

Mr. Philip Cheung, Executive Director and Managing Director of NWDS, added, “The Company currently operates six department stores in North-eastern China, and the acquisition will further strengthen its strong department store network in the region. We will continue to explore acquisition and development opportunities to further enhance our leading position in the PRC.”

*Source: Shenyang Statistics Bureau (http://www.sysinet.gov.cn) 

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