Powerland AG : Powerland continues its expansion of store capacities according to plan

Powerland continues its expansion of store capacities according to plan

? Expansion persists: With 8 new openings, number of stores reaches 188 until end of March 2013

? 40 further new openings planned for 2013

Frankfurt/Main, 4 April 2013 - With 8 new openings, Powerland AG (ISIN DE000PLD5558 / Prime Standard), the leading Chinese manufacturer of handbags, leather goods and accessories, continues to expand its distribution network according to plan. The company has opened 8 new stores in the first quarter of 2013 and thereby increased the total number of stores to 188.

The expansion of the distribution network is therefore in line with expectations. After the number of stores already increased by 16 to a total of 180 during 2012 and in addition to the 8 new openings during the first three months of 2013, Powerland plans to open another 40 stores in 2013. Until the end of 2013, the number of stores is expected to reach approximately 230, until the end of 2014 around 300.
To this end, the quality of the locations plays a key role: Powerland conducted its first stringent and rigorous review of its distribution network in 2012, in order to improve overall store standards and distribution quality. Furthermore, Powerland continues the strategy to open stores operated by distributors in prime locations and, increasingly, self- operated stores. Thus, half of the stores opened in the first quarter of 2013 are self- operated, namely the airport stores in Ordos and Hohhot, the store in the Shanghai High-Speed Railway station, and the Wanda store in Fuzhou, which is wholly owned by Powerland. As at 31 March 2013, out of the total of 188 Powerland stores, 35 were self- operated stores. Until the end of this year, this number is expected to rise to a minimum of 50.

Dynamic growth expected in 2013

The Chinese economy is expected to continue to do well in 2013, therefore Powerland expects another strong performance as the company will benefit from the growing middle

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class in China and the current government policy designed to increase domestic consumption in the country. New store openings and the continuing extensive brand- building measures will increasingly contribute positively to the growth of Powerland in
2013 and the following years.
The delayed publication of the financial statements 2012 as communicated last week has no impact on the forecasted dynamic operative development of Powerland.
For more information, please contact:

Powerland AG

Jiangbin He
Investor Relations Director
Lyoner Strasse 14
60528 Frankfurt am Main
Germany
Phone: [phone] - 459
Fax: [phone] - 276
E-mail: [e-mail]
Home: http://www.powerland.ag

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