Li & Fung Signs 93,000 Sq. Ft. Lease for U.S. Corporate Headquarters and Showrooms

Business Wire, May 17, 2005

NEW YORK -- Li & Fung USA, a subsidiary of the Hong Kong-based premier global sourcing group Li & Fung Trading Ltd., today announced that it has signed a 93,000 sq. foot lease at 1359 Broadway to support the Company's rapid expansion of its U.S. operations.

The Company will initially occupy 73,000 square feet of space, which will house its global brands business, design studios, logistics operations and the recently acquired Ralsey Group. Li & Fung USA plans to dedicate one floor to showroom space for the Company's global brands, which currently include Cannon, Royal Velvet, Levi's Red Tab, Levi's Signature brands and Disney Plush Toys. It also plans to devote 2,200 square feet for a design center/studios.

"This is an exciting step for the Company and will allow for the continued expansion of our brand strategy, as well as bringing our core business closer to our target market," said Rick Darling, President of Li & Fung USA, Global Brands Group. "Our new U.S. headquarters provides us with the right platform and capacity to grow our U.S. operations."

Li & Fung USA intends to occupy the remaining 20,000 square feet by mid-2006, with additional plans for design studios, showrooms and private offices. Cushman and Wakefield represented the tenant in the transaction.

About Li & Fung Trading Limited:

Li & Fung Trading Limited is the world's leading consumer goods sourcing company managing the supply chain for retailers and brands worldwide. Headquartered in Hong Kong, the Group services its customer globally through a sourcing network of 66 offices in 37 countries and territories. For more information, please visit Li & Fung's corporate Web site at www.lifung.com.