(1 March, 2007 – HONG KONG) – Sa Sa International Holdings Limited ("Sa Sa" or the "Group", stock code: 0178), Asia's leading cosmetics retailer and beauty services group, announced its overall retail sales performance in Hong Kong and Macau for the first two months of 2007. Since Chinese New Year falls in January in 2006 and in February this year, the Group consolidated the retail sales performance of January and February in Hong Kong and Macau, and achieved over 7% turnover growth in 2007 as compared with the corresponding period in the previous year. The average amount spent per transaction and the total number of transactions recorded a growth of 4.1% and 3.6% respectively.

For the first week of Chinese New Year (from 18 February to 24 February, 2007), Hong Kong and Macau retail sales achieved a growth of over 5%, as compared with the corresponding period last year (from 29 January to 4 February, 2006). Both the average amount spent per transaction, and the total number of transactions recorded an increase on a year-on-year basis.

Mr. Simon Kwok, Sa Sa's Chairman and Chief Executive Officer, said, "The retail sales growth in January and February in Hong Kong and Macau is mainly attributable to the increased spending of both local consumers and tourists from Mainland China."

"Looking ahead, the Group will proactively increase our market share across Asia. Also, we will bring flexibility to the issue of lease renewal and to the negotiation of new leases to improve our operational efficiency amid the existing market condition in Hong Kong. All in all, Sa Sa holds a cautiously optimistic outlook for the second half of financial year 2006/07."

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Company Background Sa Sa is a leading cosmetics retailing and beauty services group in Asia. Its over 90 retail stores in Asia selling more than 400 brands of skin care, fragrance, make-up and hair care products including private labels and other exclusive international brands. Over 700 well-trained beauty consultants are employed to provide professional services to its customers. Sa Sa prospers on its successful and proven "one-stop cosmetics specialty store" concept which aims to provide its customers with the widest range of quality products. Its e-commerce arm, Sasa.com, provides online shopping service to customers as well as a strong marketing tool for the Group. The Group operates nine health and beauty clubs in Asia through Phillip Wain and two beauty centres in Hong Kong through Sasa Beauty+, providing comprehensive beauty services to customers. Sa Sa, established in 1978, was listed on The Stock Exchange of Hong Kong in June 1997, and had an annual turnover of over HK$2.6 billion for the year ended 31 March 2006.

For further information, please visit www.sasa.com or contact:

Sa Sa International Holdings Limited
Macy Leung
Tel: 2975 3601
Fax: 2898 9717
E-mail: corpcomm@sasa.com