INTERIM RESULTS HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2006

Giordano 2006 Interim Results Group Financial Highlights For the Six Months Ended June 30 2006 2005 YOY Change Turnover (HK$M) 2,021 2,152 - 6.1% Gross profit (HK$M) 1,021 1,096 - 6.8% EBITDA (HK$M) 253 328 - 22.9% Operating profit (HK$M) 184 246 - 25.2% Profit before tax (HK$M) 192 261 - 26.4% Profit attributable to shareholders (HK$M) 151 187 - 19.3% Earnings per share (HK cents) 10.1 12.8 - 21.1% Interim dividend per share Basic (HK cents) Special (HK cents) 4.5 2.0 - Dividend payout ratio (%) 64.4% 50.8% Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Group Financial Highlights For the Six Months Ended June 30 2006 2005 Net cash & bank balances (HK$M) 606 827 * Cash inflow from operating activities (HK$M) 106 148 Inventory turnover on sales (days) 34 30 Current ratio (x) 2.6 2.6 * Gross margin (%) 50.5% 50.9% EBITDA margin (%) 12.5% 15.2% Operating margin (%) 9.1% 11.4% Net margin (%) 7.5% 8.7% * As at December 31, 2005 Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Divisional Highlights For the Six Months Ended June 30 Turnover Operating Profit 2006 (HK$M) 2005 YOY % Change Retail & Distribution 1,869 1,953 - 4.3% 164 214 - 23.4% Garment Trading & Manufacturing 480 520 - 7.7% 20 32 - 37.5% Intra-division Elimination (328) (321) + 2.2% - Total 2,021 2,152 - 6.1% 184 246 - 25.2% Aug 2006 Giordano 2006 Interim Results

Retail & Distribution Turnover by Brand For the Six Months Ended June 30, 2006 Bluestar Exchange 8% (9%) Giordano Ladies 5% (4%) Giordano core line + Junior 87% (87%) Note: 2Q05 figures in brackets Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change Giordano & Giordano Junior 1,624 1,698 - 4.4% - 5.9% 1,530 Giordano Ladies 92 84 + 9.5% + 6.4% 29 Bluestar Exchange 153 171 - 10.5% - 6.1% 139 Retail & Distribution Total 1,869 1,953 - 4.3% - 5.3% First half gross margin deceased by 0.7 percentage points YOY. First half operating margin decreased by 2.2 percentage points YOY. Aug 2006 Giordano 2006 Interim Results

Retail & Distribution Turnover by Market For the Six Months Ended June 30, 2006 Hong Kong 22% (21%) Taiwan 17% (20%) Singapore 10% (11%) Mainland China 25% (24%) Australia 6% (5%) Note: 2Q05 figures in brackets Indonesia 4% (3%) Others 13% (13%) Malaysia 3% (3%) Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Global Retail Network Number of Outlets As at Jun 30, 2006 As at Dec 31, 2005 YTD Change Giordano & Junior Giordano Ladies Bluestar Exchange Total Australia 53 - 2 55 52 + 3 Hong Kong 54 8 37 99 101 Indonesia 67 5 72 62 + 10 Japan 20 21 1 South Korea 150 168 18 Mainland China 667 11 36 714 706 + 8 Malaysia + 1 Middle East 111 107 + 4 Philippines 44 43 Singapore 48 50 + 2 Taiwan 230 237 7 Thailand 59 57 Others 35 40 39 1,530 29 139 1,698 1,694 Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – CHINA For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change Mainland China 472 464 + 1.7% + 7.2% 714 Unseasonable weather slowed sales in 1Q06. Sales decreased 2.0% YOY. 2Q06 sales up 6.1%. 1H06 sales up 1.7%, comp store sales up 7.2%, gross margin up 0.5 percentage point. Added 8 outlets in 1H06. Launched Giordano Concept Stores in Shanghai and Guangzhou. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – HONG KONG For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change Hong Kong 420 412 + 1.9% + 4.4% 99 1Q06 sales increased 1.4% YOY; 2Q06 sales up 2.5% YOY. 1H06 sales up 1.9%, comp store sales up 4.4%. Closed 2 outlets in 1H06. Set up 5 Giordano Concept Stores. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – TAIWAN For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change Taiwan 322 391 - 17.6% - 13.7% 230 Unseasonable weather and poor market conditions slowed sales in 1Q06. Sales decreased 25.6% YOY. Conditions slowly improving in 2Q06. 1H06 sales decreased 17.6%, comp store sales down 13.7%. Closed 7 stores in 1H06. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – SINGAPORE For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change Singapore 190 205 - 7.3% - 15.7% 50 Intense competition and weakening consumer confidence in Southeast Asia slowed sales. 1H06 turnover decreased 7.3% YOY. Comp store sales down 15.7%. Opened second Giordano Ladies store in Raffles City. Added 2 stores in 1H06. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – OTHER MARKETS For the Six Months Ended June 30 Turnover (HK$M) Number of Outlets 2006 2005 YOY Change Australia 105 100 + 5.0% 55 Malaysia 56 65 - 13.8% 54 Indonesia 68 61 + 11.5% 72 Thailand 43 44 - 2.3% 59 Japan 28 29 - 3.4% 20 Rising interest rates and fuel prices weakened consumer confidence in Southeast Asia and slowed sales. Added 10 outlets in Indonesia in 1H06. 1H06 turnover increased 5.0% in Australia. Added 3 outlets during the period. Japan sales up 5.5% in local currency terms, but down 3.4% after currency translation. Posted a small operating profit in 1H06. Closed 1 outlet. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Retail & Distribution Division Operations Highlights – Korea & Middle East For the Six Months Ended June 30 Turnover (HK$M) Comp Store Sales Number of Outlets 2006 2005 YOY Change South Korea 474 478 - 0.8% - 9.6% 150 Middle East 172 145 + 18.6% + 5.8% 111 Unseasonable weather affected 1Q06 sales in Korea. Sales rebounded in 2Q06. 1H06 turnover decreased 0.8% in Korea. Comp store sales down 9.6%. Closed 18 outlets during the period. Middle East 1H06 turnover increased 18.6% YOY. Comp store sales up 5.8%. Added 4 outlets during the period, including the first store in India. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Garment Trading & Manufacturing For the Six Months Ended June 30 2006 2005 YOY Change Sales including internal sales (HK$M) 480 520 - 7.7% Sales to external customers (HK$M) 152 199 - 23.6% Percentage of Retail & Distribution’s total purchase 31.2% 31.3% NA Operating Margin (%) 4.2% 6.2% Contribution to the Group’s operating profit 10.9% 13.0% 68.3% of divisional sales to Group companies, up from 61.7% in 1H05. Gross margin decreased by 2.5 percentage points due to increased price competition. Operating margin declined by 2.0 percentage points. Relocating part of operations from high cost Guangdong to lower cost Shandong. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook General After a disappointing 1Q06, performance began to improve in 2Q06. Interest rates have likely peaked, though high oil prices remain a concern. We expect operating conditions to begin improving in 2H06. Focus on driving brand differentiation with Giordano Concept Store strategy. Step up expansion of Giordano Ladies network. Opened first store in India and plan to add two more in 2H06. Plan to add about 50 outlets globally in 2H06, most of them in Mainland China. Launch new global CRM program in 2H06 to enhance customer loyalty. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Giordano Launched 2 Concept Stores in China and 5 Concept Stores in Hong Kong in Spring 2006. Opened 4 Concept Stores in Taipei and 3 in Singapore in August. Mongkok Concept Store opening 4Q06. Target to have Concept Stores make up 15% of Giordano stores by 2008. Hong Kong Manson House Giordano Concept Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Hong Kong Causeway Bay Giordano Concept Store Hong Kong Causeway Bay Giordano Concept Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Taipei Square Giordano Concept Store Taipei 101 Giordano Concept Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Giordano Ladies Opened new stores in Xintiandi in Shanghai and Raffles City in Singapore in 1H06. Additional stores planned for the Beijing (1), Hong Kong (2) and Taiwan (1) in 2H06. Faster growth at about 10 outlets a year from 2007. Focus on regional centers like Hangzhou, Kaohsiung, Kuala Lumpur and Bangkok. Singapore Raffles City Giordano Ladies Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Shanghai Xintiandi Giordano Ladies Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Hong Kong Strategic new store openings in 2H06: Giordano Concept Store in Mongkok, Giordano Ladies in HK Airport and Shatin New Town Plaza. Mainland China Growth through new store openings (about 20 in 2H06) and comp store sales growth. Grow wholesale turnover with better merchandising. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Taiwan Weak economy and political crisis continue to affect consumer confidence. Tough market conditions driving retrenchment and consolidation. Converted 4 locations to Concept Store format in August. Target to add 10 – 20 outlets in 2H06. Singapore Expect market conditions to improve in 2H06. Converted 3 locations to Concept Store format in August. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook Other Markets Consumer confidence slowly improving in Southeast Asia. Stable economic growth expected for Australia and Japan. Target steady expansion of network in in Australia (4) and Japan (2) in 2H06. South Korea Focus on growing sales through better merchandising. Target to add 10 – 15 outlets in 2H06. Middle East Consumer spending is expected to remain strong from high oil prices. Escalation in rentals and salaries a concern. Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Outlook India First Giordano store opened in May. Two more to open in 4Q06. Target to have at least ten stores in 2007 and 20 in 2008 in India. Chennai City Center Giordano Store Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Multi-brand + Multi-market Strategy BRAND POSITIONING Basic/Classic Affordable Premium Fashion AGNES B LEVIS ZARA GIORDANO Ladies ESPRIT GIORDANO Concept GIORDANO Regular BOSSINI BALENO BLUESTAR Aug 2006 Giordano 2006 Interim Results

Giordano 2006 Interim Results Multi-brand + Multi-market Strategy MARKET OPPORTUNITIES Stores at June 30, 2006 12 Mths Growth Target Remarks Mainland China 714 50 Faster store growth for Giordano, Giordano Ladies and Bluestar Exchange. Hong Kong & Singapore 149 5 Mature markets. Steady growth at 1 to 2 locations a year. Taiwan 230 30 Southeast Asia 229 10 Faster store growth for Giordano. Launch Giordano Ladies in Kuala Lumpur and Bangkok. Launch Bluestar Exchange in Indonesia and Philippines. Australia 55 Continued roll-out of Giordano and Bluestar Exchange stores. Japan 20 Faster store growth for Giordano. South Korea 150 15 Faster store growth for Giordano. Opportunity to launch Giordano Ladies and Bluestar Exchange. Middle East 110 India 1 Steady penetration of Indian market with Giordano. Others 40 Total 1,698 Aug 2006 Giordano 2006 Interim Results