Hong Kong, January 25, 2011 - Watch and costume jewelry sourcing company Powerwell Pacific Holdings Limited (“Powerwell” or the “Company”; Stock code: 8265) today announced that its placing of 42,000,000 new shares was moderately over-subscribed. The offer price has been fixed at HK$0.80 per share. Dealings in the shares of the Company on the Growth Enterprise Market of the Stock Exchange of Hong Kong are expected to commence on Wednesday 26 January 2011.

Based on the final offer price of HK$0.80 per share, the net proceeds from the placing is estimated to be approximately HK$17.9 million, which are intended to be used for corporate expansion and for expanding the PRC watch business.

Powerwell is principally engaged in the sourcing business providing sourcing and procurement solutions to customers who are mainly brand owners and importers. The Company sources a variety of products to its customers which include watches, costume jewelries, and display and packaging products. Finished products for the sourcing business are mostly exported overseas.

Taking into account the importance of the PRC market to the Group’s long term development and leveraging on its experience in the sourcing business, the Group expanded into the PRC watch business under the Tianba (天霸) and Harpo (海霸) brands in March 2010. The two brands were acquired in June 2010, and up to December 2010 the sales network comprised 110 sales points in department stores and shopping malls in 54 cities in the PRC.

Powerwell Chairman, Executive Director and compliance officer Liu Tin Chak, Arnold said: “We are delighted to have received a warm market response to our placing, which reflects investors’ confidence in our business model and the prospects of our new PRC watch operations. Having set the correct cornerstones upon which our successful sourcing business may grow, we will further develop our capabilities in product designs and development by investing in advanced equipment. We will also commit resources for the furtherance of our Tianba (天霸) and Harpo (海霸) brands in the PRC.”

CIMB Securities (HK) Limited and Access Capital Limited are the joint sponsors of the proposed listing, with CIMB Securities (HK) Limited being the sole bookrunner.

Issued by :
Powerwell Pacific Holdings Limited

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