361 Degrees Reports Sales Order Growth of 27% for the 2011 Winter Trade Fair

HONG KONG, May 3, 2011 /PRNewswire-Asia/ -- 361 Degrees International Limited ("361 Degrees" or the "Company", together with its subsidiaries, the "Group"; HKSE stock code: 1361), one of the leading sports brand enterprises in China, is pleased to announce that it held a highly successful 2011 Winter Trade Fair (the "Fair") at its own premises in the Wuli Industrial Complex, Jinjiang City, Fujian Province, from 15-22 April 2011.

Over 4,000 representatives from the Company's exclusive distributors and retailers, who were divided into three groups for better control and interaction, attended the Fair and their responses to a new range of featured collections for the forthcoming winter season were generally very enthusiastic.

As one of only three Trade Fairs held in a year by the Company, the Fair was particularly important given recent cost pressures and growing concerns in some quarters on rising inventory levels. In that regard, the Company is pleased to note that the orders received in respect of this Fair showed a commendable 27% improvement over the similar fair held in April 2010, which was itself a highly successful event.

The higher-than-expected results can be analyzed as follows:

The higher ASP in apparel reflects the increasing costs of raw materials as well as the higher quality of the clothing in general. It is pleasing to note the volume increase in footwear as the Company had greatly broadened its range, with varying price points as a result of the investment in product innovation.

These orders will be fulfilled from about September 2011 and in accordance with the Company's policy, the revenue will be recognized upon delivery, which will mean that a substantial part of the sales from this Fair will be reflected in the first half of FY 2012.

Meanwhile, the Company is looking forward to the 26th Summer Universiade to be held in Shenzhen in August 2011, for which 361 Degrees is an official Global Sponsor. As part of the 100th Anniversary of Tsinghua University celebrations, the World University Games flame was lit on 25 April, by five young students representing the five continents, all donning the 361 sportswear. Over 13,000 participants from 180 countries are expected to compete in 24 different sports in the 12-day event which is being held in China for the first time in 10 years. The Company will align its marketing efforts in the forthcoming months to lead up to these Games.

About 361 Degrees International Limited

361 Degrees International Limited is one of the leading sports brand enterprises in China, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group's products include footwear, apparel, accessories and equipment for sport and leisure uses. The Group has established an extensive supply chain management system through proprietary and sub-contracted manufacturing operations; and an exclusive distribution and retail network in China through distribution via authorized distributors.