ERATAT LIFESTYLE LIMITED

(Company Registration No: 200705552D)

ERATAT RECEIVED CONFIRMED ORDERS OF RMB380 MILLION

We are pleased to announce that following the recent 2012 Spring/Summer Season ("2012 Season") product launch and trade order fair (or "Trade Fair") which was held in end August 2011, the Group has received confirmed sales orders amounting to RMB380 million, of which about 37% are for ERATAT Premium products (as compared to 8% last year). This will be delivered from January to June 2012.
As part of the Group's strategy to grow ERATAT Brand image, products and pricing, the proportion of higher margin apparel sales continues to grow vis-à-vis footwear sales. The 2012 Season sales contribution by footwear and apparel will be about 25% and 75% respectively (2011 Season: 51% and
49% respectively).
During the Trade Fair, we officially introduced Mr Vincenzo Romanelli of Alda Santini as our product design consultant. Alda Santini is a fashion design house based in Italy, and their clients include international brands such as Camel Active, Manor AG, Maxmara and Phard. In addition, our in-house retail management training academy has been launched officially, to provide formalized retail management and service training to our distributors, retailers and sales staff so as to further establish ERATAT as a premium label in the market.

By order of the Board

Lin Jiancheng