For Immediate Release

Hong Kong, 26th August 1998 - For the six months ended 30th June 1998, Li & Fung Limited achieved a profit attributable to shareholders of HK$157 million, representing an increase of 23% over the corresponding period in 1997. The Group's turnover rose by 8% to HK$6.1 billion.

Earnings per share increased by 21% to 25 cents. The Group will pay an interim dividend of 15 cents per share compared with 13 cents for the same period in 1997.

Commenting on the results, Group Managing Director of Li & Fung, William K Fung, said that buoyant Western economies, particularly the US, had generated strong orders in the first half of the year. "Because of our large and flexible global sourcing network, we were able to fulfill this demand effectively."

Mr Fung added, "Due to financial instability from the continuing economic crisis, we expect trading conditions in Asia to remain uncertain and volatile in the second half of the year. However, being an export trading specialist we may benefit from these conditions. And there are many possible business opportunities which we plan to fully develop."

"We are now embarking on our next 3-year plan covering the years 1999 to 2001, and we are optimistic about the Group's prospects in these next few years", Mr Fung concluded.

Li & Fung has also successfully completed the acquisition of Standard Fireworks' business in the UK in the first half of 1998. This will give the Group a dominant position in the UK fireworks business.

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 42 offices in 26 countries and a staff of over 2,400 worldwide. Annual turnover in 1997 was HK$13.3 billion.

For enquiries:
Scotchbrook Communications Limited	telephone	2877-3939
Christopher Homfray	direct line	2863-9136
Fannie Mok	direct line	2863-9119

© Copyright 1996-2008 irasia.com Ltd. All rights reserved. Tel: (852) 2831-9792.

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website. TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website.