Hong Kong – July 30th, 2006

Giordano announced that its Japanese operations turned a small operating profit in the six months ended June 30th, 2006.

“I am pleased with the progress we have made in the first half of 2006.  We continued to restructure our operations and among other things we closed one outlet so that our network now stands at 20 outlets compared to 21 as at end-2005.  As a result, our 1st half turnover declined by 3% year-on-year to HK$28 million in 2006.  However, this was more than offset by the other gains from our restructuring efforts which helped us achieve a small operating profit in the 1st half of 2006 instead of the operating loss we suffered last year” remarked Mr Peter Lau, Chairman and Chief Executive of Giordano International Limited.

“What’s more, we have now chalked up 14 consecutive weeks of profitable operations in Japan and we are on track to turn a profit for 2006 as a whole.  At just over 1% of Group turnover, our Japanese business is admittedly still very small, but the market has great potential.  I believe we have now established a firm base to allow us to more aggressively pursue growth in Japan.  With this in mind, we plan to add four new outlets to our network before the end of the year” Mr Lau added.

Giordano International Limited is a leading international retailer of men’s, women’s and children’s apparel under the brand names “Giordano”, “Giordano Ladies”, “Giordano Junior” and “Bluestar”.  Established in 1981, Giordano International now operates 1,700 stores and counters in Greater China, Japan, Korea, Southeast Asia, Australia, India and the Middle East.