Hong Kong, May 7, 2002 - Hong Kong's leading bags concept chain and brand FX Creations International Holdings Limited (HKGEM: 8136) ("FX" or the "Company") announced today details of the Company's plan to list on the Growth Enterprise Market of the Stock Exchange of Hong Kong. FX designs and markets a range of executive and smart casual bags, wallets, portfolios and accessories under its own FX Creations brand. It manages a retail network of 21 concept stores and department store counters in Hong Kong and Taiwan, and under agency or distribution arrangements sells its products through 110 retail points in China, Singapore, Malaysia, Indonesia, Australia, New Zealand, Japan, Korea and Europe. FX is one of the largest chains of bags concept stores in Hong Kong and Greater China targeting the mid-range young and trendy market.

The Company will offer a total of 81 million new shares, representing about 20.25% of its enlarged issued share capital, by way of placing and public offer. The Hong Kong public offer is comprised of 40 million new shares (subject to reallocation) and will commence on Wednesday, May 8, 2002 and close at 12:00 noon on Monday, May 13, 2002. The issue price for the public offer and placing is between HK$0.25 and HK$0.27 per share. Based on the offer price range, the Company's market capitalisation will be between HK$100 million and HK$108 million.

Dealings in the Company's shares on GEM of the Stock Exchange of Hong Kong are expected to commence on Tuesday, May 21, 2002. Kingston Corporate Finance Limited is the sponsor of the placing and public offer, with Kingston Securities Limited as the lead manager, and GC Securities, Interchina Securities, Young Champion Securities, Guotai Junan Securities, Christfund Securities, Quam Securities and Tingkong-RexCapital Securities as the underwriters.

Petto Ng Pak-to, Chairman and Managing Director of FX, noted: "FX Creations is an up-and-coming young brand which has tremendous room for further growth, in both the size and diversity of our product and network portfolio. We have a niche brand image, strategic network and strong retail management to support us to make advances in new markets in the US, Europe and Asia, and for a continued expansion in Greater China."

As a brand and retail management company, FX takes charge of the overll product development, brand image building, marketing and retail management functions of its rapidly expanding retail network in Asia Pacific. After listing, the Company intends to vertically integrate its operations by setting up its own manufacturing facilities, with a view to further strengthening its competitive position and improving profit margins. The Company plans to allocate approximately HK$10.3 million to acquire plant, machinery and production facilities for this purpose.

Mr Ng continued: "Our brand image is one of the most important assets of the Group. We will continue to roll out advertising and promotional campaigns to enhance the awareness of our FX Creations brand. One such plan is to issue an FX Creations credit card in the near future.

"We will also leverage our brand equity to expand our product range into apparel, eyewear and other accessories through licensing. The Greater China will remain our core market, but active network expansion will be pursued through agency arrangements. The next few years will witness our Group making advances into new markets in the US, Europe and Asia."

The Group maintains a healthy balance of retail and distribution businesses. In the year ended March 31, 2001, retail sales contributed 69% of Group turnover, but management believes that sales through agents and distributors is an effective and low-risk means to bring the FX chain into new markets. At the same time, it will continue to directly manage and develop the retail network in its home market, including Hong Kong and Taiwan.

The Company plans to utilise approximately HK$1.5 million to set up additional retail shops in Hong Kong and Taiwan, HK$1 million to conduct advertising and marketing campaigns and other corporate image enhancement programs, and HK$0.5 million to finance the expansion of its geographical coverage.

Based in Hong Kong, FX Creations International Holdings Limited (HKGEM: 8136) is a leading concept chain and brand of mid-range bags for the young and trendy market. It opened its first department store counter in 1996 and first FX Creations concept store in 1999, and now commands a network of over 130 retail points in Greater China and other parts of Asia Pacific. The FX Creations collection comprises a range of executive bags, portfolios, sports bags, backpack, handbags and wallets, as well as accessories including belts, timepieces, eyewear and umbrellas.

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FX Creations International Holdings Limited