Man Sang Holdings, Inc. Announces Financial Results for the First Quarter Ended June 30, 2006

Business Wire, August 14, 2006

NEW YORK -- Man Sang Holdings, Inc. (the "Company" or "Man Sang") (AMEX: MHJ) announced today its financial results for the three months ended June 30, 2006.

Net sales in the three months ended June 30, 2006 decreased to approximately US$12.6 million, representing a drop of 6.0% when compared to the same period last year. The high oil price together with fluctuating gold price affected market demand and customers reacted conservatively in placing their orders. The decrease in net sales resulted from the decreased sales of South Sea pearls but were offset, in part, by increased sales of assembled finished pearls and jewelry products. Sales to European customers still showed a positive growth in this quarter while sales to US customers dropped when compared to the same quarter last year.

Sales of assembled pearls & jewelry products and South Sea pearls continue to contribute the largest share of the Man Sang Group's total net sales, representing approximately of 45.6% and 43.0%, respectively, of total net sales.

Gross profit was approximately US$3.9 million, representing an increase of 1.1% and gross profit margin increased to 30.7% from 28.5% when compared to the same period last year. Net income was approximately US$0.6 million, representing a decrease of 1.8% when compared to the same period last year.

On the property investment side, the Company has committed in an investment project located in Zhuji, Zhejiang in PRC (the "Zhuji Project") in March 2006. The Company is now preparing for the acquisition of the land use rights for the development of Phase I of the Zhuji Project. Construction work will start soon after the completion of acquisition procedures and receipt of the approval for commencement of construction work. Phase I of the Zhuji Project is expected to be completed by the end of 2007.

"We believe that the economy will still inevitably face uncertainties generated by higher oil prices and higher interest rates. The Company will continue to adopt prudent measures on controlling its costs and, at the same time, will continue to emphasize active promotional and marketing efforts in order to further strengthen our market share and customer base. Through attaining high quality and innovative design of our products, we believe that this will help us achieve our targeted performance results. Looking forward, we believe that our business future will be promising through our group efforts," Mr. Cheng Chung Hing, Chairman of Man Sang, stated.

About Man Sang Holdings, Inc.

Man Sang Holdings, Inc. and its subsidiaries (together the "Man Sang Group") are one of the world's largest purchasers and processors of Chinese cultured and freshwater pearls. The Man Sang Group is principally engaged in the purchasing, processing, assembling, merchandising and wholesale distribution of pearls, pearl jewelry and other jewelry products. In addition, the Man Sang Group owns and operates the Man Sang Industrial City, an industrial complex, located in Gong Ming Zhen, Shenzhen Special Economic Zone, PRC.

* The consolidated financial statements of the Company are maintained, and its consolidated financial statements are expressed, in Hong Kong dollars. The conversion of Hong Kong dollar into United States dollars is for convenience only and has been made at the rate of HK$7.8 to US$1, the approximate free rate of exchange as at June 30, 2006. Such conversion should not be construed as representations that the Hong Kong dollar amounts could be converted into United States dollars at that rate or any other rate.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are, by their nature, subject to risks and uncertainties. This Act provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about themselves so long as they identify these statements as forward-looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements, including statements regarding industry prospects and future results of operations or financial position, made in this press release are forward-looking. Words such as "anticipates," "believes," "expects," "future" and "intends" and similar expressions may identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to: the Company's future performance, the Company's expansion efforts, the state of economic conditions and the Company's market. These forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes to be appropriate in particular circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depend on a number of known and unknown risks and uncertainties and other factors, any or all of which could cause actual results, performance or achievements to differ materially from the Company's expectations, whether expressed or implied by such forward-looking statements (which may relate to, among other things, the Company's sales, costs and expenses, income, inventory performance, and receivables). Primarily engaged in the processing and trading of pearls and pearl jewelry products, and in real estate investment, the Company's ability to achieve its objectives and expectations are derived at least in part from assumptions regarding economic conditions, consumer tastes, and developments in its competitive environment. The following assumptions, among others, could materially affect the likelihood that the Company will achieve its objectives and expectations communicated through these forward-looking statements: (i) that low or negative growth in the economies or the financial markets of its customers, particularly in the United States and in Europe, will not occur and reduce discretionary spending on goods that might be perceived as "luxuries"; (ii) that the Hong Kong dollar will remain pegged to the US dollar at US$1 to HK$7.8; (iii) that customer's choice of pearls vis-a-vis other precious stones and metals will not change adversely; (iv) that the Company will continue to obtain a stable supply of pearls in the quantities, of the quality and on terms required by the Company; (v) that there will not be a substantial adverse change in the exchange relationship between the renminbi ("RMB") and the Hong Kong or US dollar; (vi) that there will not be substantial increase in tax burden of subsidiaries of the Company operating in the PRC; (vii) that there will not be substantial change in climate and environmental conditions at the source regions of pearls that could have material effect on the supply and pricing of pearls; and (viii) that there will not be substantial adverse change in the real estate market conditions in the PRC and in Hong Kong. This press release should be read in conjunction with the financial statements and the notes included hereto and in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2006, and with the Company's annual report on Form 10-K for the year ended March 31, 2006. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company will not publicly release any revisions to these forward-looking statements after the date hereof. Readers are urged, however, to review the factors set forth in reports that the Company files from time to time with the Securities and Exchange Commission.