09:34     IDS<02387> - Announcement (5)                                       

    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions have the meanings         
    set out below, unless the context otherwise requires:                     
                                                                              
    ``Acquisition and Service Agreement''   the acquisition and service       
    agreement dated 9 March 2005 between JDH (Philippines) and IDS            
    Marketing (Philippines), pursuant to which IDS Marketing                  
    (Philippines) has conditionally agreed to acquire from JDH                
    (Philippines) the Inventory, the Motor Vehicles and the IT Equipment      
    and to provide to JDH (Philippines) the Service;                          
                                                                              
    ``Company''   Integrated Distribution Services Group Limited, a           
    company incorporated in Bermuda whose shares are listed on the Stock      
    Exchange;                                                                 
                                                                              
    ``connected person(s)''   each of which has the meaning ascribed to       
    it under the Listing Rules;                                               
                                                                              
    ``Director(s)''   director(s) of the Company;                             
                                                                              
    ``First Completion Date''   31 March 2005 or such later date as JDH       
    (Philippines) and IDS Marketing (Philippines) may agree;                  
                                                                              
    ``First Tranche Inventory''   certain part of the Inventory               
    relating to a specified principal, the completion of which will take      
    place on the First Completion Date;                                       
                                                                              
    ``Group''   the Company and its subsidiaries;                             
                                                                              
    ``HK$''   Hong Kong Dollars, the lawful currency of Hong Kong;            
                                                                              
    ``IDS Marketing (Philippines)''   IDS Marketing (Philippines),            
    Inc., a company incorporated in the Philippines and a wholly owned        
    subsidiary of the Company;                                                
                                                                              
    ``Inventory''   certain inventory of JDH (Philippines) to be sold         
    to IDS Marketing (Philippines) under the Acquisition and Service          
    Agreement upon the principals of IDS Marketing (Philippines)              
    requesting it to acquire the same, comprising the First Tranche           
    Inventory, the Second Tranche Inventory, the Other First Tranche          
    Inventory and the Other Second Tranche Inventory;                         
                                                                              
    ``IT Equipment''   used information technology equipment to be sold       
    by JDH (Philippines) to IDS Marketing (Philippines) under the             
    Acquisition and Service Agreement;                                        
                                                                              
    ``JDH (Philippines)''   JDH (Philippines), Inc., a wholly owned           
    subsidiary of LFD;                                                        
                                                                              
    ``LFD''   Li & Fung (Distribution) Limited, a controlling                 
    shareholder of the Company;                                               
                                                                              
    ``Listing Rules''   The Rules Governing the Listing of Securities         
    on the Stock Exchange;                                                    
                                                                              
    ``Motor Vehicles''   used motor vehicles to be sold by JDH                
    (Philippines) to IDS Marketing (Philippines) under the Acquisition        
    and Service Agreement;                                                    
                                                                              
    ``Other First Tranche Inventory''   certain part of the Inventory         
    relating to the same principal that is related to the First Tranche       
    Inventory, the completion of which will take place on the Other           
    Inventory Completion Date, and is (i) the subject of pending purchase     
    orders as at the time of the First Completion Date; (ii) in transit       
    as at the time of the First Completion Date; or (iii) the inventory       
    returned from the trade within 90 days after the First Completion         
    Date;                                                                     
                                                                              
    ``Other Second Tranche Inventory''   certain part of the Inventory        
    relating to the same principals that are related to the Second            
    Tranche Inventory, the completion of which will take place on the         
    Other Inventory Completion Date, and is (i) the subject of pending        
    purchase orders as at the time of the Second Completion Date; (ii)        
    in transit as at the time of the Second Completion Date; or (iii)         
    the inventory returned from the trade within 90 days after the Second     
    Completion Date;                                                          
                                                                              
    ``Other Inventory Completion Date''   the date on which the               
    completion of the acquisition of the Other First Tranche Inventory        
    or the Other Second Tranche Inventory takes place, which shall be         
    a date to be agreed by JDH (Philippines) and IDS Marketing                
    (Philippines), provided that in the case of the Other First Tranche       
    Inventory, such date shall be within 90 days from the First               
    Completion Date, and in the case of the Other Second Tranche              
    Inventory, such date shall be within 90 days from the Second              
    Completion Date;                                                          
                                                                              
    ``Percentage Ratios''   has the meaning set out in Rule 14A.10(10)        
    of the Listing Rules;