(8 May, 2006 – 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 a 7% growth in its retail sales in Hong Kong and Macau during the Labour Day holiday week from 1 May to 7 May, 2006 as compared to the Labour Day holiday week from 1 May to 7 May, 2005. The growth is lower than expected.

During the week-long holiday, the average value per transaction in Hong Kong and Macau was HK$263, 4% higher than that of the Labour Day holiday in 2005, while the number of transaction recorded a growth of 3%.

Mr. Simon Kwok, Chairman and Chief Executive Officer of the Group, said, "Since the Labour Day holiday in Hong Kong, together with the Buddha's Birthday holiday made up two long weekends , the sales from local customers during the week was affected as many people traveled abroad. In addition, the number of PRC tourists was lower than expected during this Golden Week. In spite of these, Sa Sa still managed to record a 7% growth in retail sales as compared to the same period last year."

"As the current rental growth and other operational costs still maintain at a high level, while the growth of tourists was lower than expected, we believe the operating environment for retailers in Hong Kong will remain challenging."

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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 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 approximately HK$2.3 billion for the year ended 31 March 2005.