Li & Fung USA Acquires Regatta USA Addition of Exclusive Brand ...

Contact:For Li & Fung USABerns Communications GroupStacy Berns/Michael McMullan212-994-4660For Regatta USALWPCOJason Weisenfeld212-252-8881FOR IMMEDIATE RELEASELI & FUNG USA ACQUIRES REGATTA USAAddition of Exclusive Brand Portfolio Advances Growth StrategyNew York, NY, August 15, 2007 – Li & Fung USA, a subsidiary of Hong Kong-based Li& Fung Limited, announced today that it has acquired substantially all of the assets ofPacific Alliance, LLC, Regatta USA LLC, and all of their related companies. RegattaUSA is the market leader in the development of proprietary apparel brands for majorretailers in the United States. The purchase price was approximately $145 million.Regatta USA, under the leadership of its founder and CEO, Haim Dabah, designs, sourcesand markets such prominent apparel brands as Daisy Fuentes, Simply Vera by Vera Wang,Lagerfeld - Karl Lagerfeld, Nicole Miller, Metro 7, B Street and other private label brandsfor major retailers. The company serves such retailers as Kohl’s, Wal-Mart, JC Penney,and Charming Shoppes. Haim Dabah, as well as Regatta USA President Barbara Tichner,and their entire senior management team, will continue to run Regatta USA while joining

Li & Fung USA and lead the company’s move toward building wholesale proprietarybrands.“Regatta is the industry leader in identifying and developing brand opportunities andthrough this acquisition they will significantly increase our capability to develop anddesign brands for major retailers in the U.S.” said Rick Darling, President of Li & FungUSA. “We are very excited to have Haim, Barbara and their entire team, join Li & FungUSA, and they will play a major role in our evolution as an innovative wholesale supplier.Haim will continue to serve as Chief Executive Officer of Regatta USA and will alsoserve as a member of the Li & Fung USA Executive Board and help shape our businessmodel as we develop our strategy for the future. In addition, Haim will join Li & Fung’scorporate Policy Committee and work toward broadening our brand base throughout ournetwork.”“The entire Regatta USA team looks forward to building on our brand platform throughLi & Fung’s unparalleled sourcing, operational and financial resources,” Dabahcommented. “They have a clear and compelling vision for the future, have earned therespect of the top retailers and maintain a position of excellence within the industry.”About Li & Fung USALi & Fung USA, a group trademark of The Millworks Trading Co., Ltd., is a subsidiaryof Li & Fung Limited, the world’s leading sourcing company for consumer goods,managing the supply chain for retailers and brands worldwide. Headquartered in Hong

Kong, the Group services its customer globally through a sourcing network of over 70offices and 40 countries and territories. Corporate website: www.lifung.com.About Regatta / Pacific AllianceRegatta / Pacific Alliance, and its affiliates, develops, supplies and manages covetedfashion brands such as Daisy Fuentes; Simply Vera by Vera Wang; Lagerfeld – KarlLagerfeld; Metro 7; Nicole Miller; and Todd Smith for the world's largest retailers. Itleads the industry with its business model of focusing on proprietary brands aligned withkey retailers. Headquartered in New York, Regatta / Pacific Alliance's strategic andinnovative approach in design and marketing has made them one of the top resources inthe fashion industry.