For Immediate Release

Hong Kong, 26 March 2001 - Hong Kong-based global export trading firm, Li & Fung Limited (SEHK: 494) today announced that profits attributable to shareholders achieved in 2000 was HK$870 million, increasing by 51%. The Group's turnover was HK$25 billion, growing by 53% from HK$16.3 billion in 1999. Earnings per share were 32.2 cents. The Group will pay a final dividend of 18 cents per share, which together with the interim dividend of 7 cents, would make a total dividend for the year of 25 cents per share (1999 total: 17 cents). [NOTE: All dividends and earnings per share for previous periods are adjusted to reflect the two-for-one share split of 19 September 2000.]

Group Managing Director of Li & Fung, Mr. William K. Fung, said, "The year 2000 was a banner year for Li & Fung. Not only did we achieve a healthy organic growth of 32% during the year, but the Swire & Maclaine, Camberley and Colby acquisitions together contributed an additional 21% to our growth in turnover. That shows our strategy of accelerating growth through a combination of internal growth and acquisitions is working out even better than anticipated."

"The expansion initiatives we have taken in the last two years have further consolidated our position as the premier global private label sourcing company. We do not believe the apparent slowdown of the US economy will have serious adverse impact on our business. On the contrary, experience tells us that in the medium term, the outsourcing trend in the US market will grow stronger in a weak economy as retailers tend to rely more on our type of services instead of running their own buying organizations that incur fixed expenses. Li & Fung's broad sourcing network all over the world ensures our competitive edge under such a market environment," Mr. Fung continued.

Mr. Fung is confident that the business prospects for his company in the near term will remain healthy. Whilst only the December result of Colby was included in year 2000, there will be significant growth in turnover in 2001 when Colby's contribution for the full year will be booked. However, Mr. Fung noted that Colby was operating at lower margins than the current Li & Fung business.

"We are optimistic that we will be able to end our 1999-2001 three-year plan on a high note. The progress we have made so far is a clear indicator that we are right on track to achieving our target of doubling our profit during this period," he said.

Li & Fung Limited is today one of the premier global consumer products export trading companies managing the supply chain for high-volume, time-sensitive consumer goods, including garments, fashion accessories, toys and games, sporting goods, furnishings, handicrafts, shoes, travel goods and tableware. These goods are sourced through a network of offices in 37 countries for customers in the US, Europe and Asia.

For further information:

Scotchbrook-BSMG Worldwide (Hong Kong) Ltd	Telephone: 2877 3939
Fannie Mok	Direct line: 2863 9119
Carson Chan	Direct line: 2863 9117

Corporate website: www.lifung.com

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