Hong Kong, 17 August 2000 - In the six-month period ended 30 June, 2000, Li & Fung Limited [SEHK: 494], the Hong Kong-based global export trading house, achieved a strong profit attributable to shareholders of HK$294 million, an increase of 52%. The Group's turnover was HK$10.3 billion compared with HK$6.6 billion for the same period in 1999, a growth of 56%. Earnings per share were 22.2 cents. The Group will pay an interim dividend of 14 cents per share (1999 interim: 9 cents).

The Directors of the Company propose that each of the existing issued and unissued shares of HK$0.05 each in the share capital of the Company be subdividied into two shares of HK$0.025 each in order to improve market circulation of the shares.

In December 1999, Li & Fung announced the acquisitions of two export trading subsidiaries of the Swire Pacific Group - Swire & Maclaine and Camberley, the results of which were included in the Group's interim figures.

Group Managing Director of Li & Fung, Mr William Fung, said, "We are very pleased to report that the Group experienced a strong internal sales growth of 39% even before taking into account contribution from the acquired businesses." During the period, the acquisitions added HK$1.1 billion to turnover and HK$30 million to net profit.

Mr Fung went on, "US business was the main driver of growth in the first half. Despite concerns about a slowdown in certain sectors of the US economy, our business continues to perform well. It is evident that retailers are increasingly conscious of the need to stay competitive regardless of the state of the market and, hence, relying more on the outsourcing support that we provide through our vast global network."

Looking ahead, Mr Fung said, "The outlook of consumer goods sales of our customers in the major markets of US and Western Europe remains bright and we are optimistic that we shall be able to sustain the strong growth momentum in the latter half of the year.

"We are in the middle of our current three-year plan (1999-2001). Our progress so far points clearly to the fact that we are well on track to achieving our goal of doubling our profit over this period."

lifung.com inc., the Group's e-commerce venture based in San Francisco, has been progressing well in establishing its B2B platform to capture the small and medium sized market segment in the US. A fully-staffed professional team is working at full steam in preparation for the launch of this new internet business in the fourth quarter of 2000. The venture will be launched with the new domain name StudioDirect.com.

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 over 30 countries for customers in the US and Europe.

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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