Hong Kong, December 6, 2000 - Kingmaker Footwear Holdings Limited (HKSE: 1170) today announces that in the six months ended September 30, 2000, the Group recorded the fifth consecutive year of growth in both turnover and profit attributable to shareholders, which were HK$582,190,000 and HK$82,382,000, representing an increase of 7.37% and 34.86% respectively from the same period last year. The Board proposed an interim dividend of HK3.5 cents per ordinary share. After taking into account of the bonus issue during the period, the interim dividend is increased by 25% compared to that of last year.

The strong performance was attributable to the continued growth of sales of children and baby-shoes. These product lines accounted for a 8.6% growth compared with the last corresponding period. In addition, the Group's efforts in re-engineering the production process and more extensive deployment of information technology have helped it raise cost efficiency and enhance the production flow.

The Group has established a new production plant in Vietnam, with both the main factory and office building already in operation. The new plant has a designed capacity of 8 production lines, and by February 2001, the initial 3 production lines will become fully operational. "We believe that Vietnam has the potential to develop into one of the major production bases for both US and European customers as the political and economic situation becomes more stable in the country," said Mr. Chen Ming-hsiung, Mickey, Chairman and Managing Director of Kingmaker Footwear.

With an optimistic view of the footwear market, the Group will continue to invest to enhance and strengthen its R&D capabilities. Satisfactory performance was also registered from the Group's distribution of "Lotto" and "Head" footwear in the PRC.

Kingmaker Footwear Holdings Limited is a leading ODM manufacturer of trendy rugged, casual shoes, baby shoes and high value footwear, primarily for the US and European markets. The Group's current major customer portfolio comprises Skechers, Timberland, Stride Rite, Caterpillar and Wolverine, as well as a range of other famous brands such as Bates, Clarks, Great Lakes, Hush Puppies, Keds, Merrell, Paul Smith, Sperry, Sperry Topsiders and Stride. The Group has a workforce of 8,500, on a total of 23 production lines in Zhuhai, the PRC, Macau and Vietnam.

Issued by :
Kingmaker Footwear Holdings Limited

Through :
Troika Communications Limited
Jenny Lee / Kelly Lau
tel: 2511 8388 / fax: 2511 8238
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