09:37     DICKSON CONCEPT<00113> - Announcement (3)                           

    Licence Fee:  Based on a certain percentage of the monthly sales          
                  made at the sales corner but subject to a minimum           
                  monthly licence fee payment of HK$82,000, to be paid        
                  in cash within 20 days of each month in arrears             
                                                                              
    Fixture Fee:  HK$6,600 per month, to be paid in cash within 20 days       
                  of each month in arrears                                    
                                                                              
    The maximum annual caps (including licence fees and fixture fees)         
    receivable by Hong Kong Seibu Enterprise under the period of              
    Agreement No. 4 for the financial years ending 31st March, 2005,          
    31st March, 2006 and 31st March, 2007 will be HK$443,000,                 
    HK$1,209,200 and HK$838,700 respectively.  The aforesaid maximum          
    annual caps were derived based on the estimated annual growth after       
    taking into consideration the amount of licence fee and fixture fee       
    for a total of HK$265,800 received by Hong Kong Seibu Enterprise          
    from S.T. Dupont Marketing in respect of the above sales corner for       
    the three months commencing 1st November, 2004, the size and              
    location of the sales corner, the prestige of the relevant brand and      
    its products, the prevailing as well as the expected market               
    conditions.                                                               
                                                                              
    (E) Licence Agreement with Tommy Hilfiger Marketing ("Agreement No.       
        5")                                                                   
                                                                              
    Hong Kong Seibu Enterprise and Tommy Hilfiger Marketing entered into      
    a licence agreement regarding the following licence on 3rd February,      
    2005:                                                                     
                                                                              
    Grantor:      Hong Kong Seibu Enterprise                                  
                                                                              
    Licensee:     Tommy Hilfiger Marketing                                    
                                                                              
    Premises:     A sales corner in the Langham Place Seibu Store             
                                                                              
    Area:         About 337 sq. ft.                                           
                                                                              
    Period:       Two years from 1st November, 2004                           
                                                                              
    Licence Fee:  Based on a certain percentage of the monthly sales          
                  made at the sales corner but subject to a minimum           
                  monthly licence fee payment of HK$84,250, to be paid        
                  in cash within 20 days of each month in arrears             
                                                                              
    Fixture Fee:  HK$9,000 per month, to be paid in cash within 20 days       
                  of each month in arrears                                    
                                                                              
    The maximum annual caps (including licence fees and fixture fees)         
    receivable by Hong Kong Seibu Enterprise under the period of              
    Agreement No. 5 for the financial years ending 31st March, 2005,          
    31st March, 2006 and 31st March, 2007 will be HK$466,250,                 
    HK$1,119,000 and HK$689,250 respectively.  The aforesaid maximum          
    annual caps were derived based on the estimated annual growth after       
    taking into consideration the amount of licence fee and fixture fee       
    for a total of HK$279,750 received by Hong Kong Seibu Enterprise          
    from Tommy Hilfiger Marketing in respect of the above sales corner        
    for the three months commencing 1st November, 2004, the size and          
    location of the sales corner, the prestige of the relevant brand and      
    its products, the prevailing as well as the expected market               
    conditions.                                                               
                                                                              
    REASON FOR THE TRANSACTIONS                                               
                                                                              
    The shop space under Agreement No. 1 is currently used by Dickson         
    Stores as a retail shop and the renewal of Agreement No. 1 for            
    continued operation of the relevant retail shop is a practical            
    commercial decision of the Group.  The licensing of the sales             
    corners under Agreements Nos. 2 to 5 are practical commercial             
    decisions of the Group and will ensure steady income to Hong Kong         
    Seibu Enterprise.  The housing of the various brands in the relevant      
    Hong Kong Seibu department stores will reinforce Hong Kong Seibu's        
    status as one of the most prestigious department store groups in          
    Hong Kong.                                                                
                                                                              
    The rental payment under Agreement No. 1 was determined with              
    reference to the open market for properties of similar size and           
    location and prevailing market conditions.  The licence fee and           
    fixture fee (if applicable) payments under Agreements Nos. 2 to 5         
    were determined with reference to prevailing market conditions, the       
    size and location of the respective sales corners within the Hong         
    Kong Seibu department stores and the relevant brands.                     
                                                                              
    The Directors, including the independent non-executive Directors,         
    consider that the entering into of Agreements Nos. 1 to 5 is in the       
    ordinary and usual course of business of the Group, on normal             
    commercial terms which were negotiated at arm's length, are no less       
    favourable to the Group than those available to or from (as               
    appropriate) independent third parties, are fair and reasonable and       
    are in the interests of the Company and its shareholders as a whole.