For Immediate Release

Hong Kong, 29 March 1999 -- For the year ended 31st December 1998, Li & Fung Limited, the Hong Kong-based multinational export trading group, announced attributable profit of HK$455 million compared to HK$375 million in 1997, an increase of 21%. The Group's turnover was HK$14.3 billion compared with HK$13.3 billion for the same period in 1997. Earnings per share were 72 cents as against 60.1 cents in 1997.

Group Managing Director of Li & Fung, Mr William K Fung, said "The size and flexibility of our sourcing network have helped us to continue serving our customers effectively in spite of the generally uncertain trading conditions in Asia. As a result, we have also been able to maintain our strong record on growth in profit and return to shareholders."

1998 was the final year of Li & Fung's last three-year plan. Mr. Fung noted that profits for 1998 were double those for 1995. "I am happy to say that we have achieved our three-year plan targets and have emerged out of the Asian financial crisis stronger than ever. We remain well placed to satisfy healthy demand in our main markets of the USA and Western Europe in the coming year."

The Board of Directors has recommended a final dividend of 42 cents (31 cents in 1997). An interim dividend of 15 cents was paid in September 24 1998 (13 cents in 1997) making a total of 57 cents for the year.

Looking ahead to the next three years spanning 1999 to 2001, Mr Fung said that the company expects to maintain its strong record of growth.

Mr Fung added. "There will be no let up in the expansion of our sourcing network to obtain products of the best quality, price and delivery for customers. By constantly improving our service and coverage, we can continue to meet the supply chain management needs of major global retailers and brands."

Established in Guangzhou in 1906, Li & Fung is today one of the premier consumer products trading companies in the world. The Group is headquartered in Hong Kong with 45 offices in 29 countries and a staff of over 2,400 worldwide.

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