China Dongxiang (Group) Co., Ltd. Announcement of Global Offering

Offering Highlights:

• Total number of Offer Shares: 1,375,000,000, which initially includes 137,500,000 Hong Kong Public Offer Shares and 1,237,500,000 International Placing Shares
• Price range: HK$3.60 to HK$3.98 per Share
• Offer size: HK$ 4,950.0 million to HK$ 5,472.5 million before exercise of the over-allotment option
• The Hong Kong Public Offer will commence at 9:00 a.m. on Tuesday,September 25, 2007 and is expected to close at 12:00 noon on Tuesday, October 2, 2007
• Shares of China Dongxiang are expected to commence trading on the Main Board of the Stock Exchange of Hong Kong Limited on Wednesday, October 10, 2007, and its stock code is 3818
• Deutsche Bank and Merrill Lynch are the Joint Global Coordinators, Joint Bookrunners, , Joint Lead Managers and Joint Sponsors for this Global Offering

(September 24, 2007 - Hong Kong) China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or the "Company"), today announced details of the Company's global offering (the "Global Offering").

The Global Offering of the Company comprises of 1,375,000,000 total Offer Shares, among which 90% shares (i.e.1,237,500,000 shares) will initially be conditionally placed pursuant to the International Offering and the remaining 10% shares (i.e. 137,500,000 shares) will initially be offered to the public in Hong Kong under the Hong Kong Public Offering. The Offer Shares to be offered in the Hong Kong Public Offering and the International Offering are subject to clawback and may be reallocated as between these offerings at the discretion of the Joint Global Coordinators.

China Dongxiang's offer price is expected to be between HK$3.60 and HK$3.98 per Share. Assuming that the over-allotment option is not exercised and based on HK$3.79 per Share being the mid-point of the price range, it is estimated that the Company will receive net proceeds of approximately HK$4,292.6 million after deducting the underwriting commissions and estimated offering expenses payable by the Company. The net proceeds will be used for the following purposes:

• approximately 53.0%, to develop existing brands and expand brand portfolio: develop additional product lines of KAPPA Brand which includes KAPPA Kids and Robe Di KAPPA; expand brand portfolio as well as acquire the PRC ownership or operating right of one or more brand(s), and operate the newly acquired brand(s);
• approximately 25.0%, to expand and improve distribution network which may include directly investing in distributors, setting up retail joint ventures with distributors or other potential partners; and / or purchases of premises for retail stores in prime locations for renting to distributors;
• approximately 5.0%, to establish new operating headquarters through construction of new buildings or purchases of new office buildings;
• approximately 5.0%, to enhance design and development capabilities and facilities;
• to pay the special dividend declared by the Company in respect of the five months ended 31 May 2007; and
• the remaining for working capital and other general purposes.

The Hong Kong Public Offer of China Dongxiang will commence at 9:00 a.m. on Tuesday, September 25, 2007 and is expected to close at 12:00 noon on Tuesday, October 2, 2007. Trading of China Dongxiang's shares on the Main Board of the Stock Exchange of Hong Kong Limited is expected to commence on Wednesday, October 10, 2007. The Company's stock code is 3818.

Deutsche Bank and Merrill Lynch are the Joint Global Coordinators, Joint Bookrunners, Joint Lead Managers and Joint Sponsors for this Global Offering.

Commenting on the Company's Global Offering, Mr. Chen Yihong, Chairman and Executive Director of China Dongxiang, said "The robust economic growth in recent years, together with the accelerated urbanization and increase in urban household income levels as well as the rising popularity of sports and an increasing trend towards health and fashion will drive demand for sportswear products in the PRC. With our market leading position in the PRC and solid business model; well-known international brand; experienced management team with a proven track record; innovative design and development capabilities; effective marketing strategy and a wide network of retail outlets, we aim to become one of the leading international sportswear brand enterprises in the world."

Commenting on the future, Mr. Chen concluded, "Looking ahead, China Dongxiang will endeavor to further capture the growth opportunities in existing sportswear markets, continue to innovate product design and improve product quality; further expand our product lines; reinforce and expand distribution infrastructure; develop a multiple brand portfolio and upgrade our information systems and enhance the exchange of information system, thus maximizing returns to our shareholders."

This press release is issued by Wonderful Sky Public Relations & Financial Consultant Co., Ltd. on behalf of China Dongxiang (Group) Co., Ltd.

For further information, please contact:
Wonderful Sky Public Relations & Financial Consultant Co., Ltd.
Katy Chan / Terence Wong / Ivan Kau / Grace Zhang
Tel:(852) 2851 1038
Fax:(852) 2815 1352
Email:katychan@wspr.com.hk / terencewong@wspr.com.hk /
            ivankau@wspr.com.hk / gracezhang@wspr.com.hk

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sotd in the United States absent registration or an exemption from registration. The Offer Shares have not been, and will not be, registered under the US Securities Act of 1933. There will be no public offering of the Shares in the United States.

Not for publication or distribution in the United States