C.banner Enters into Distribution Agreement with "Dongguan Highline" and "J.C." to Distribute "ASH" and "JC" Branded Products

Expanding Brand Portfolio
Meeting Consumer Needs
Enhancing Market Influence

HONG KONG, March 21, 2013 /PRNewswire/ -- C.banner International Holdings Limited ("C.Banner" or the "Company", together with its subsidiaries, the "Group", stock code: 1028), the second largest retailer of mid-to-premium women's formal and casual footwear in China, is pleased to announce that the Company entered into the Distribution Agreement with Dongguan Highline United Trading Co., Ltd. ("Dongguan Highline") and J.C. Leather Products (Dong Guan) Ltd. ("J.C."), the well-known mid-to-premium women's footwear in China, agreed to distribute "ASH" and "JC" branded products under "Dongguan Highline" and "J.C.".

Pursuant to the distribution agreement, Nanjing Mayflower Footwear Corporation ("Nanjing Mayflower"), wholly owned subsidiary of the Group, became the principal distributor of the Products for the distribution of "ASH" and "JC" branded products in the PRC. The Products are sold by the Dongguan Highline and J.C. to Nanjing Mayflower on a wholesale basis. Nanjing Mayflower is responsible for the retail of the two brands in Mainland China. The Group's distribution rights of the Products shall be for terms of six years (for Products under "ASH" brand) and ten years (for Products under "JC" brand) respectively. According to the distribution agreement, the Group will also take over the operation of over 100 existing sales points of "ASH" and "JC" branded Products in the PRC. It is targeted that the total number of sales points of the Products in the PRC will reach around 200 in the next three years.

"Dongguan Highline" and "J.C." are Taiwanese-funded high-end women's footwear design manufacturer, headquartered in the capital of shoes, Dongguan, and mainly focused on the R&D, production and global wholesale business for certain internationally well-known women's footwear brands. The products are novel and fashionable in design and of superior quality, which enjoy a high reputation in the women's footwear industry in China.

Mr. Chen Yixi, Chairman of C.BANNER said, "Currently, C.banner retails shoes under its self-developed brands, namely "C.banner", "EBLAN", "sundance" and "MIO", as well as under its licensed "naturalizer" brand. It has been one of the Group's strategies to expand its brand portfolio and enhance the market share in the women's footwear market in the PRC by introducing new brands targeting mid-to-premium footwear market. The brand positions of "ASH" and "JC" are relatively higher as compared with the Group's existing brands. Therefore, with their accession, our brand portfolio could be further enriched to better meet a wide range of consumer needs, thereby enhancing our influence in the market. "

About C.banner International Holdings Limited

C.banner International Holdings Limited is the second largest retailer of mid-to-premium women's formal and casual footwear in China, and is engaged in the manufacturing and sales of women's footwear with various designs. The Group manages four self-developed brands, namely "C.banner", "EBLAN", "sundance" and "MIO", as well as licensed brand "naturalizer", and distributes "ASH" and "JC" brand products, through an extensive distribution and retail network in mainland China. C.banner's self-developed brands and licensed brands products are mainly distributed through department stores and independent retail stores in different cities, ranging from first-tier to third-tier cities in China. Furthermore, the Company also acts as an OEM or ODM manufacturer for international shoes companies dealing in export markets.

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