House of Pearl Fashions acquires new garments logistics warehouse in Milton Keynes, UK
New Delhi, December 6, 2006

House of Pearl Fashions Ltd, a multinational apparel company, has acquired a new warehouse facility in Milton Keynes, UK. The storage facility will be a garment logistics warehouse with a capacity of nearly 43000 sq ft and has been acquired through its subsidiary, Poeticgem Ltd. The total storage capacity of Poeticgem Ltd will now go up to over 90,000 sq ft. Poeticgem Ltd is investing over 2.4 million pounds for the acquisition.

“The buyout of the garment logistics warehouse facility is part of our integration strategy. We believe that supply chain is a critical part of a retailer’s businesses today and House of Pearl is implementing and expanding its capacity and infrastructure to meet the customer’s increasing supply chain demand.” says Mr Deepak Seth, Group Chairman, House of Pearl Fashions Ltd.

He further added, “ We believe that the demand for storage and order fulfillment has grown as increasing number of retailers today prefer to stock products on ‘Just in Time’ basis.”

The new warehouse has sophisticated machinery for pre-retail finishing and reprocessing of garments. House of Pearl Fashions caters to the supply chain demand of major customers in UK such as ASDA, NEXT, Tesco among others.

About House of Pearl Fashions Ltd
HOP Fashions is a multinational, ready-to-wear apparel company operating in three business streams: manufacturing, marketing and distributions and sourcing of garments. HoP Fashions operates ten modern ready-to-wear apparel manufacturing facilities, of which six are located in North India, one in South India, two in Bangladesh and one in Indonesia. HoP Fashions manufactures a broad range of products comprising of knits, woven, sweaters and bottoms in basic as well as complex designs. The company has marketing and distributions offices in the UK, the US and Hong Kong which oversee marketing and merchandising teams across Canada, Europe, Hong Kong, the UK and US that interact with customers at their locations. The company also owns warehousing and processing units in the UK and the US. HoP Fashions also has a sourcing business in Hong Kong with offices in China, Bangladesh and India. The company has fabric development centers in China and India as well design and product development teams in the UK, the US, India and Hong Kong.

As of June 30, 2006, HoP Fashions employed approximately 6,496 full time employees on wholetime and contractual basis, of which 4,193 were based outside India.

Disclaimer
The company is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with the securities and exchange board of India. The draft red herring prospectus is available on the websites of SEBI at www.sebi.gov.in and the book running lead manager at www.jmmorganstanley.com For risk factors and other information, please refer to the Draft Red Herring Prospectus.

This is not an offer of securities for sale in the United States and the Company’s equity shares may not be offered or sold in the United States