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Giordano International Limited (stock code: 709) September 1, 2008

2008 Interim Results. Giordano International Limited (stock code: 709) September 1, 2008. Core business achieving steady growth. Solid fundamentals. 1 As at December 31, 2007 . Stable return to shareholders. 1 Continuing and discontinuing operations combined.

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Giordano International Limited (stock code: 709) September 1, 2008

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  1. 2008 Interim Results Giordano International Limited (stock code: 709) September 1, 2008

  2. Core business achieving steady growth Giordano 2008 Interim Results

  3. Solid fundamentals 1 As at December 31, 2007 Giordano 2008 Interim Results

  4. Stable return to shareholders 1 Continuing and discontinuing operations combined Giordano 2008 Interim Results

  5. Exit manufacturing to focus on retail • Completed divestiture of remaining 51% shareholding in primary manufacturing subsidiary in August 2008 • Sale of 21% shareholding for HK$22.9 million • Conversion of balance 30% shareholding into non-voting preferred shares with guaranteed annual dividend of HK$2.6 million • Call option at HK$32.7 million exercisable within 5 years and put option at HK$27.8 million exercisable after 2 years • Expected to record a gain of HK$14.7 million on sale of its 21% interest and a non-cash gain of HK$16.1 million from the conversion of the remaining 30% interest into preferred shares • Residual manufacturing operations to be consolidated • Reduced shareholding in Dongguan garment manufacturing JV from 49% to 9.9% in June 2008 • Recorded a one-time gain on disposal of HK$17 million Giordano 2008 Interim Results

  6. Exit manufacturing to focus on retail 1 Combined results including both continuing and discontinuing operations 2 Year-on-year change Giordano 2008 Interim Results

  7. Steady growth in core retail business • Better performance reflects consumer acceptance of our branding efforts • 1H08 gross margin increased by 130 basis points • 1H08 gross profit increased by 15.0% YOY • Comparable store sales increased by 0.8% Giordano 2008 Interim Results

  8. Retail & Distribution turnover by brand For the six months ended June 30, 2008 • BSX / Bluestar Exchange • 5% of 1H08 turnover (1H07: 7%) • Turnover down 19.6% • Comp store sales up 4.2% • Net reduction of 8 outlets • Giordano Concepts • 5% of 1H08 turnover (1H07: 4%) • Turnover up 31.7% • Comp store sales down 0.1% • Added 10 stores in 1H08 • Giordano Ladies • 5% of 1H08 turnover (1H07: 5%) • Turnover up 13.3% • Comp store sales up 5.8% • Gross margin up 80 basis pts • Added 2 stores in 1H08 • Giordano & Giordano Junior • 85% of 1H08 turnover (1H07: 84%) • Turnover up 13.3% • Comp store sales up 0.1% • Gross margin up 140 basis pts • Added 31 outlets in 1H08 Giordano 2008 Interim Results

  9. Mainland China • 34% of 1H08 turnover (1H07: 29%) • Turnover up 34.1% in 1H08 • 859 out of 1,934 stores worldwide Others, 11% (10%)1 Thailand, 3% (3%)1 Malaysia, 3% (3%)1 Indonesia, 4% (4%)1 Australia, 5% (6%)1 Singapore, 8% (9%)1 Hong Kong, 18% (21%)1 Taiwan, 14% (15%)1 Retail & Distribution turnover by market For the six months ended June 30, 2008 1 YOY figures in brackets Giordano 2008 Interim Results

  10. MAINLAND CHINA China focus yielding strong results • Eight consecutive quarters of double-digit turnover growth since 3Q06 • Turnover increased by 34.1% (1H07: up 26.9%) • Comp store sales increased by 11.8% (1H07: up 20.6%) • ASP up 23.1% in RMB terms and gross margin expanded by 270 basis pts from improved merchandise mix • 39 stores added in 1H08 1 As at December 31, 2007 Giordano 2008 Interim Results

  11. HONG KONG Stable performance in a challenging market • Total turnover stable (1H07: up 2.6%) • Comp store sales increased by 3.8% (1H07: up 7.8%) • ASP up 23.8% and gross margin expanded by 340 basis pts from improved merchandise mix • Turnover of Giordano brands (Giordano, Junior, Ladies and Concepts) up 6.0% and comp store sales up 3.5% 1 As at December 31, 2007 Giordano 2008 Interim Results

  12. TAIWAN Re-engineering efforts gaining traction • Turnover increased by 4.7% (1H07: down 0.6%) • Comp store sales increased by 2.2% (1H07: down 3.5%) due to improved merchandising and marketing 1 As at December 31, 2007 Giordano 2008 Interim Results

  13. SINGAPORE Reorganizing to improve operations • Turnover down 5.5% in 1H08 (1H07: up 5.3%) • Experienced Hong Kong management team brought in to reorganize operations 1 As at December 31, 2007 Giordano 2008 Interim Results

  14. SOUTH KOREA Turnaround on track • Turnover increased by 2.5% (1H07: down 7.0%) • Comp store sales increased by 2.1% (1H07: down 12.0%) • Gross margin increased by 50 basis pts • Gross profit increased by 3.5% • Five stores added in 1H08 Note: South Korea sales are not consolidated into Group sales. On June 30, 2008, the Group held 48.8% in Giordano South Korea. 1 As at December 31, 2007 Giordano 2008 Interim Results

  15. MIDDLE EAST Continued expansion in a buoyant market • Turnover grew by 22.3% (1H07: up 17.4%) • Comp store sales increased by 17.0% (1H07: up 2.4%) • Six stores added in 1H08 Note: Middle East sales are not consolidated into Group sales. On June 30, 2008, the Group held 20.0% in Giordano Middle East. 1 As at December 31, 2007 Giordano 2008 Interim Results

  16. Outlook • Continue to focus on driving rapid growth in Mainland China • New flagship stores opened in Hangzhou and Wuhan in August • Additional flagship stores to be opened in Beijing, Guangzhou and Chengdu • Increase advertising and promotion efforts • Sales grew by double-digit in July and August • Target to maintain double-digit turnover growth in 2H08 • Intensify brand building efforts to drive ASP and gross margin increases in all markets • Reinforce turnaround efforts in Taiwan, Singapore and South Korea Giordano 2008 Interim Results

  17. GLOBAL RETAIL NETWORK Giordano 2008 Interim Results

  18. Q&A 2008 Interim Results Giordano International Limited(stock code: 709)

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