NEWS RELEASE

(Hong Kong, 14 September 2002) PARKnSHOP, Hong Kong's leading supermarket chain, today announces the opening of its newest Megastore in China in the Haizhu District of Guangzhou. The new Guangzhou Fujing Garden Megastore is PARKnSHOP's largest store in China, with an area of 203,880 square feet.

Officiating at the opening ceremony, Mr Ian Wade, Group Managing Director of A.S. Watson Group (ASW) said, "A.S. Watson has become a truly international retail group with its latest acquisition of Kruidvat, a leading health and beauty retail chains in Europe, making us one of the world's largest retailers. In China, Guangzhou is an extremely important city to us ... it is our goal to become the number one food retailer here."

Mr Iwan Evans, Chief Executive Officer of ASW's Retail Food Division reveals the key to success in China, saying, "PARKnSHOP's past success has been built on listening to and responding to the needs of our customers. The Guangzhou Megastore is a reflection of our focus on the customer in southern China, an area of intense focus for us in the last two years as we believe that there is tremendous potential in the Guangzhou market."

The launching of the new Megastore concept in Guangzhou reflects the continued maturation of the China market, with more and more consumers in Guangzhou and China accustomed to the one-stop shop environment. This growing demand has seen PARKnSHOP embark on a period of strategic expansion in southern China, which involves carefully identifying ideal Megastore locations and maintaining close relations and cooperation with local government authorities to ensure mutual benefits with the local community.

"Working closely with local government authorities is vital. We understand very well that country would not change for us, we have to change for the country," added Mr Evans.

With China's entry into the WTO, we anticipate increased competition in the retail sector in China. The opening of another PARKnSHOP Megastore in China means that we are increasingly well placed for this competition."

Satisfying consumers is becoming a PARKnSHOP specialty, as evident by its recent naming as Hong Kong's "Most Favoured Brand" in a recent survey of over 900 major brands. "We have become the industry leader in Hong Kong and we would like to leverage this experience to introduce the brand and create differentiation in the Mainland China market," said Mr Evans.

The survey was part of a worldwide exercise conducted by leading independent research house Ipsos-Reid which polled more than 17,000 people in 22 countries. Hong Kong was the only country surveyed in which a retailer took top shot.

About PARKnSHOP

Established in 1973, PARKnSHOP is Hong Kong's leading supermarket chain. The brand represents continuous commitment to innovation, quality, service and value. It is a brand that customers trust.

PARKnSHOP is a member of the A.S. Watson Group (ASW), a wholly-owned subsidiary of Hutchison Whampoa Limited. With a history dating back to 1828, ASW has evolved into an international retail and manufacturing business with operations in 20 countries in Asia and Europe. The Group operates over 3,200 retail stores, owns more than 20 water and juice brands and employs more than 51,000 staff worldwide.