C.banner Enters into Distribution Agreements to Distribute "FRENCH CONNECTION" and "UNITED NUDE" Branded Products

Enriching Brand Portfolio and Enhancing Market Influence

HONG KONG, Aug. 6, 2013 /PRNewswire/ -- C.banner International Holdings Limited ("C.Banner" or the "Company", together with its subsidiaries, the "Group", stock code: 1028), the second largest retailer of mid-to-premium women's formal and casual footwear in China, is pleased to announce that Mayflower (Nanjing) Enterprise Limited ("Nanjing Mayflower"), a wholly-owned subsidiary of the Group, entered into the Distribution Agreement ("Distribution Agreement A") with Dongguan Highline United Trading Co., Ltd. ("Dongguan Highline"), the well-known mid-to-premium women's footwear manufacturer in China, agreed to distribute "FRENCH CONNECTION" branded products under "Dongguan Highline". Meanwhile, Nanjing Mayflower entered into the Distribution Agreement ("Distribution Agreement B") with United Nude International and its subsidiary, Guangzhou La Gu Na, agreed to distribute "UNITED NUDE" branded products.

Pursuant to the distribution agreement A, signed on 2 August 2013, Nanjing Mayflower became the principal distributor of the Products for the distribution of "FRENCH CONNECTION" products in the PRC. The FRENCH CONNECTION Products comprise footwear products bearing the "FRENCH CONNECTION" and "FCUK" trademarks respectively. The distribution rights of the "FRENCH CONNECTION" Products shall be for a term of four years commencing from 1 January 2014, which is renewable for a further five years. In addition, the Distribution Agreement B was signed on 30 July 2013, pursuant to which Nanjing Mayflower was granted distribution rights to distribute the UNITED NUDE Products in the PRC (excluding Guangzhou City) for a term commencing from 14 March 2013 to 31 August 2016, which is renewable for a further three years.

Dongguan Highline, United Nude International and Guangzhou La Gu Na are principally engaged in the design, development, manufacture and wholesale of mid-to-premium women's footwear. "FRENCH CONNECTION" creates well-designed fashionable products that appeal to a broad market through unique designs and a true sense of style, whereas "UNITED NUDE" has established an iconic brand at the intersection between design and fashion with clear concepts, elegance and innovation since its establishment.

Currently, C.banner retails shoes under its self-developed brands, namely "C.banner", "EBLAN", "sundance" and "MIO", as well as under its licensed "naturalizer" brand. It has been one of the Group's strategies to expand its brand portfolio by introducing new brands targeting mid-to-premium footwear market. The Group has been granted the distribution rights of "ASH" and "JC" branded products since March 2013 by Dongguan Highline and J.C. Leather. It is considered that the obtaining of distribution rights of an additional brands, "FRENCH CONNECTION" and "UNITED NUDE", could further enrich the Group's brand portfolio, which enables the Group to have a diverse brand portfolio offering a wide variety of products to meet a wide range of consumer needs, thereby enhancing the Group's market share and its influence in the women's footwear market in the PRC.

Mr. Chen Yixi, Chairman of C.Banner said, "All along, C.banner has been striving to enrich our brand portfolio for our customers. Not only utilizing self-developed brands, the Group has also successfully acquired distribution rights of different brands such as 'FRENCH CONNECTION' and 'UNITED NUDE'. With their accession, our brand portfolio could be further enriched to better meet a wide range of consumer needs, thereby enhancing our influence in the women's footwear market in the PRC. Therefore, we strongly believe that the entering into of the Distribution Agreement is in the best interests of the Group and the Shareholders as a whole."

About C.banner International Holdings Limited

C.banner International Holdings Limited is the second largest retailer of mid-to-premium women's formal and casual footwear in China, and is engaged in the manufacturing and sales of women's footwear with various designs. The Group manages four self-developed brands, namely "C.banner", "EBLAN", "sundance" and "MIO", as well as licensed brand "naturalizer", and distributes "ASH" and "JC" brand products, through an extensive distribution and retail network in mainland China. C.banner's self-developed brands and licensed brands products are mainly distributed through department stores and independent retail stores in different cities, ranging from first-tier to third-tier cities in China. Furthermore, the Company also acts as an OEM or ODM manufacturer for international shoes companies dealing in export markets.

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