China Dongxiang (Group) Co., Ltd. Successfully Completed the Offering With Overwhelming Response in Global Offering Hong Kong Public Offering 124 Times Over-subscribed Priced at the top of Initial Range at HK$ 3.98 per Share

China Dongxiang (Group) Co.,Ltd. ( "China Dongxiang" or the "Company" ; stock code: 3818) announced the successful completion of its Global Offering. The Company's shares have drawn unanimous recognition and support from the market investors and institutional investors, resulting in a considerable oversubscription in both Hong Kong Public Offering and International Placing. In this Global Offering of China Dongxiang, there was an oversubscription of 124 times in Hong Kong Public Offering; whereas International Offer has been very significantly over-subscribed. Each share was priced at the top of the price range at HK$ 3.98.

The Global Offering of China Dongxiang comprised 1,375,000,000 Offer Shares totally, of which 1,237,500,000 Shares (accounted for approximately 90% of the Offer Shares under the Global Offering) were initially offered under the International Placing, while the remaining 137,500,000 Shares (accounted for approximately 10% of the Offer Shares under the Global Offering) were initially offered under the Hong Kong Public Offering to the general public in Hong Kong.

As the demand for subscription of shares in the Hong Kong Public Offering was overwhelming, which amounted to 124 times of the number of shares available for initial subscription, the clawback mechanism was triggered, in which 550,000,000 Shares from the International Placing were reallocated to the Hong Kong Public Offering. As a result, the number of Shares available for subscription under the Hong Kong Public Offering totaled 687,500,000 Shares, representing 50 % of the Offer Shares initially available for subscription under the Global Offering.

China Dongxiang's Shares are expected to commence dealings on the Main Board of The Stock Exchange of Hong Kong on Wednesday, October 10, 2007. The stock code is 3818.

In response to the overwhelming subscription, Mr. Chen Yihong, Chairman and Executive Director of China Dongxiang, said, "The success in both the Hong Kong Public Offering and the International Placing has reflected our presence as an outstanding enterprise with sound corporate strength, alongside the confidence the investor community has in our solid business model and growth potential. Looking forward, China Dongxiang will continue to grasp the tremendous market demand and opportunities in China and strive to enhance our profitability, further strengthen our leading market position in China in order to generate greater returns for our shareholders. "

Deutsche Bank and Merrill Lynch are the Joint Global Coordinators, Joint Bookrunners, Joint Lead Managers and Joint Sponsors for this Global Offering. China Dongxiang intends to use the net proceeds for: 1. developing existing brands and expand brand portfolio; 2. expanding and improving distribution network; 3. establishing new operating headquarters through construction of new buildings or purchases of new office buildings; 4. enhancing design and development capabilities and facilities; 5. paying the special dividend; and 6. the remaining for working capital and other general purposes.

About China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise based in the PRC. Its Kappa Brand is among the top three international sportswear brands in the PRC in terms of sales revenue. The Company is primarily engaged in the design, development, marketing and wholesale of branded sportswear in the PRC. Since May 30, 2006, China Dongxiang has owned all rights to the internationally recognized Kappa Brand in the PRC and Macau.

In addition, China Dongxiang's licensed Rukka Brand is the first step in its multiple brand strategy, offering performance-focused sportswear and accessories. It also operates as a sourcing centre for BasicNet, the owner of the Kappa Brand worldwide other than in the PRC, Macau and Japan, and generates sales revenue from organizing design development, production and manufacturing of Kappa Brand products to approximately 20 Kappa licensees in approximately 20 countries.

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 for information only and does not constitute any recommendation or invitation for acquisition, purchase or subscription of the securities of China Dongxiang (Group) Co., Ltd. nor does it intend to act as a recommendation of the sale of securities or any invitation for acquisition, purchase or subscription of securities.
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