House of Pearl Fashions Ltd PAT at Rs.14.32 Crores
for the quarter ended December 2007
New Delhi, January 29, 2008

Quarter ended December 2007 Results

• Total Revenues at Rs.243.4 Crores for the quarter and 791 crore for the nine months ended 31st December,2007

• PAT at Rs.14.32 Crores for the quarter ended and Rs.43.36 Crores for nine months ended 31st December,2007

• EPS for the quarter at Rs. 22.24 for the quarter ended

• EPS (annualized) at Rs.30/-

Key Operational Highlights of the Quarter

• Operating Margins expansion by 100 basis points due to better efficiencies

• Major Expansion plan for augmenting additional capacities in Indonesia, Bangladesh and Chennai

• House of Pearl in pact with Lerros, for its retail foray in India

• House of Pearl plans to move into high fashion mid market segment through acquisition of FX Imports In UK and Simple Approach in Hong Kong

House of Pearl Fashions Limited (HOPFL), a multinational, ready-to-wear apparel Company operating in three distinct business streams: manufacturing, marketing & distribution and sourcing of garments, has reported consolidated total revenues of Rs.791 Crores for Nine months ended 31st December 2007. The net profit stood at Rs.43.36 Crores, EPS for the first nine months of the fiscal at Rs.22.24.

The Company shares were listed on the stock exchanges first time in Feb,07 before listing company was not required to publish results. As a result, Company has not reported comparative figures for the corresponding period.

Despite sharp appreciation of Indian Rupee over last six months and also increase in minimum wages by 41% in Haryana, India, the Company was able to maintain its net profit in line with first quarter and in fact the PAT to sale ratio improved. This was made possible because of unique international business model, which has helped it cover up for the losses due to dollar weakness in Indian operations due to its natural hedge in other countries.

The Company is planning a tie-up with European Brand “Lerros” subject to requisite approvals for its retail venture in India. HOPFL will hold 60% equity in the SPV, which will be set up for the retail foray. Lerros will hold 40% equity. Initially, the Company will open ten stores in the National Capital Region and gradually increase the number of stores to 300 spread throughout India over a period of three years. The Company also has its own brand in USA, viz; DCC and Kool Hearts. It plans to combine its branding/ / designing experience with sourcing knowledge to make a success of their foray in retail in India.

HOPFL also recently won the best Corporate Social Responsibility award from JC penny, one of its main customers. The company has a diverse customer-base and is serving over 90 retailers across the Globe.

About House of Pearl Fashions Limited:
House of Pearl Fashions Limited is a multinational, ready-to-wear apparel company operating in three distinct business streams: manufacturing, marketing and distribution and sourcing of garments. HoPF operates nine modern ready-to-wear apparel manufacturing facilities, of which five are located in North India, one in South India, two in Bangladesh and one in Indonesia. It 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 distribution offices in U.K, U.S. and Hong Kong, which oversee marketing and merchandising teams across Canada, Europe, Hong Kong, U.K. and U.S. that interact with customers at their locations. The Company also owns warehousing and processing units in U.K. and the U.S. HoPFL 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 as design and product development teams in U.K., U.S., India and Hong Kong.

HoPF’s customers include value retailers, such as J C Penny, TESCO and ASDA Wal-Mart, as well as higher-end fashion brand retailers, such as GAP, Banana Republic, NEXT and Esprit.

With its distinct business model, the company offers multi-country, multi-gender and multi-product options in each business stream to its customers

Forward Looking Statement
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. House of Pearl Fashions Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.