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

INTERIM RESULTS HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2006. Group Financial Highlights For the Six Months Ended June 30. Group Financial Highlights For the Six Months Ended June 30. * As at December 31, 2005. Divisional Highlights For the Six Months Ended June 30.

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

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

  2. Group Financial Highlights For the Six Months Ended June 30 Giordano 2006 Interim Results

  3. Group Financial Highlights For the Six Months Ended June 30 * As at December 31, 2005 Giordano 2006 Interim Results

  4. Divisional HighlightsFor the Six Months Ended June 30 Giordano 2006 Interim Results

  5. 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 Giordano 2006 Interim Results

  6. Retail & Distribution Division Operations Highlights For the Six Months Ended June 30 • First half gross margin deceased by 0.7 percentage points YOY. • First half operating margin decreased by 2.2 percentage points YOY. Giordano 2006 Interim Results

  7. 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%) Giordano 2006 Interim Results

  8. Global Retail Network Giordano 2006 Interim Results

  9. Retail & Distribution Division Operations Highlights – CHINA For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  10. Retail & Distribution Division Operations Highlights – HONG KONG For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  11. Retail & Distribution Division Operations Highlights – TAIWAN For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  12. Retail & Distribution Division Operations Highlights – SINGAPORE For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  13. Retail & Distribution Division Operations Highlights – OTHER MARKETS For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  14. Retail & Distribution Division Operations Highlights – Korea & Middle East For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  15. Garment Trading & Manufacturing For the Six Months Ended June 30 • 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. Giordano 2006 Interim Results

  16. 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. Giordano 2006 Interim Results

  17. 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 Giordano 2006 Interim Results

  18. Outlook Hong Kong Causeway Bay Giordano Concept Store Hong Kong Causeway Bay Giordano Concept Store Giordano 2006 Interim Results

  19. Outlook Taipei Square Giordano Concept Store Taipei 101 Giordano Concept Store Giordano 2006 Interim Results

  20. 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 Giordano 2006 Interim Results

  21. Outlook Shanghai Xintiandi Giordano Ladies Store Giordano 2006 Interim Results

  22. 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. Giordano 2006 Interim Results

  23. 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. Giordano 2006 Interim Results

  24. 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. Giordano 2006 Interim Results

  25. 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 Giordano 2006 Interim Results

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

  27. Multi-brand + Multi-market Strategy MARKET OPPORTUNITIES Giordano 2006 Interim Results

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