PRESS RELEASE

(Hong Kong 5th October 2001) PARKnSHOP today announced a massive extra savings windfall to customers worth HK$100 million.

Hong Kong's biggest supermarket chain is offering 3,000 Yellow Label discounts a day at unbeatable prices - and is also opening eleven new stores, creating over 1,000 jobs.

"We're guaranteeing the biggest savings in town on more products than ever before," said Logan Taylor, Chief Executive Officer of A. S. Watson Group's Retail Food Division, which operates PARKnSHOP.

"We're taking the lead again….bringing massive savings to Hong Kong shoppers just when they need them the most."

At times like this, he said, "the reason is probably obvious. Unfortunately, times are hard. We've talked to our customers --- and what they want most is more special offers.

"PARKnSHOP's response is to deliver the maximum possible savings on daily spending -- making life easier when our customers are watching every dollar."

At the heart of the new campaign is a re-launch of PARKnSHOP's familiar PriceWatch programme, promoted by an image makeover with a new logo, plus catchy advertising extending from television, newspapers and posters to taxis, buses and bus-shelters.

When PriceWatch started about four years ago, the number of cut-price Yellow-Label products was originally around 1,400.

"Our customers' worries about the economy have prompted us to significantly increase the number of bargains on offer at rock-bottom prices," said PARKnSHOP Marketing Director, David Durnford.

"At times like this, we're especially committed to helping our customers spend wisely and save more."

He said the value-for-money initiative on 3,000 items "represents the most extensive range of cut-price items on the market in Hong Kong".

Mr Durnford added: "We don't know for sure, but it may even be the biggest windfall ever offered by a local retailer."

"We're passing-on to customers savings worth HK$100 million."

'Yellow Label' items are monitored against rivals every day to ensure PARKnSHOP is not undercut, he said.

"If a customer does manage to find the same product on sale cheaper elsewhere, PARKnSHOP guarantees to refund double the difference," added Mr Durnford.

PARKnSHOP is the only supermarket chain in Hong Kong to operate a PriceWatch scheme, he noted.

Mr Durnford described the initiative as a "campaign to try and help our customers save their hard-earned money in hard economic times".

"We can't change the economy," he added. "But we sincerely hope PARKnSHOP can help."

PARKnSHOP also announced the opening of eleven new stores before January 2002 - and the creation of over 1,000 new jobs.

The expansion will take the number of supermarkets and superstores operated by the chain to over 200 - and the number of employees to around 10,000.

It also takes the number of new-generation PARKnSHOP superstores to 50.

"So with massive savings and new jobs, we're underlining our confidence in the future of Hong Kong and the people of Hong Kong," added Mr Taylor.