(9th October, 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 the sales performance of its retail business in Hong Kong and Macau during the National Day Golden Week from 1st October to 7th October, 2006.

During the National Day Golden Week of 2006, total sales of Sa Sa's retail business in Hong Kong and Macau dropped approximately 10% from the previous year. The decrease in sales, together with the corresponding decline in the total number of transactions during the period, were mainly attributable to the decrease in the Mainland tourists during the Golden Week Holiday.

Mr. Simon Kwok, Chairman and Chief Executive Officer of the Group, said, “As a result of the convenience for Mainland tourists to visit Hong Kong and the change in their mode of traveling, they tend to avoid peak periods to visit Hong Kong such as Golden Week Holidays and therefore dilute the effect of the National Day Golden Week. In addition, Mainlanders usually spend their Mid-Autumn Festival in China. Therefore, a lot Mainland tourists returned to China in the middle of the Holiday as the Mid-Autumn Festival holiday coincided with the National Day Holiday this year. This, in effect, has somewhat shortened the National Day Golden Week, and thus bringing negative impact to Mainland tourists' spending in Hong Kong. Furthermore, many local people chose to travel overseas during the long weekend*. All these had an adverse impact on the retail consumption in Hong Kong during the Golden Week.”

- End -

Group Background Sa Sa Sa is a leading cosmetic retailing and beauty services group in Asia. Its over 95 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 Sa Sa 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 reaching HK$2.6 billion for the year ended 31 March 2006.