(24 April, 2006 – HONG KONG) – Sa Sa International Holdings Limited (‘Sa Sa' or the ‘Group', stock code: 0178), Asia's leading cosmetics retailing and beauty services group, announced that the Group has won the trademark infringement case between Sa Sa International Holdings Limited and Shanghai Sasa Co. Ltd.

The Shanghai No 2 Intermediate People's Court has ruled that Shanghai Sasa Cosmetics Co. Ltd. has caused unfair competition and should stop the infringement on the registered trademark of Sa Sa Overseas Ltd., a subsidiary of the Group. In addition, the ruling said Shanghai Sasa Cosmetics Co. Ltd should also apply for a new company name within 30 days, which should not include the words "Sa Sa". At the same time, the offending party should pay a total compensation of RMB 300,000.

Shanghai No 2 Intermediate People's Court also supported other claims of the plaintiff, including ordering the Shanghai copycat to issue corrective statements to the national key media—Xinmin Evening News and Ray Magazine.

Mr. Simon Kwok, Chairman and Chief Executive Officer of the Group, said, "We are very pleased with the ruling of the PRC People's Court. The court's decision demonstrates that Sa Sa brand is protected by PRC laws and the government's commitment to protecting intellectual property rights (IPR). We are convinced that the ruling will help prevent consumers from Shanghai and the rest of the country from being misled and ensure that they will be able to shop for beauty products at the genuine Sa Sa stores."

"All these years, Sa Sa is popular among PRC consumers and enjoys a very high reputation in mainland China. For two years in a row, Sa Sa tops the list of the "Favourite Hong Kong brands of Chinese consumers" in 2005 and 2006. Sa Sa takes any infringement of its registered trademark and consequent misleading of consumers seriously and will take legal action against any party which infringes on our rights through proper legal means."

"Sa Sa has registered its trademark in mainland China, and opened its first mainland China store in March 2005 on Huaihai Rd in Shanghai and followed that with its second mainland store on Nanjing Rd in Oct 2005. In view of the immense potential of the retail market in China, Sa Sa strives to expand its business in the PRC market and planed to open 100 stores in mainland China within five years. The widely-acclaimed Sa Sa’s "one-stop" cosmetic store concept in China will continue to provide Chinese consumers with a diversified range of high-quality professional beauty products."

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Group Background Sa Sa is a leading cosmetic retailing and beauty services group in Asia. Its over 80 retail stores in Asia sell 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 ten 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 approximately HK$2.3 billion for the year ended 31 March 2005.