Tainan Enterprises Co., LTD

Date: Feb. 20, 2009

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Date of Establishment: 26 August, 1961 Chairman: Mr. Yang Ching-Hon Headquarters and Plant Location:

1. Company Profile

No. of Employee:15,000 Major Product: Garment, Woven & Knitted Garments,

Manufacturing for Garments

Tainan Headquarters: No.320, Sec. 3, Jungshan Rd., Gueiren Shiang, Tainan, TaiwanTaipei Office: 15F, No. 15-1, Hangiou S. Rd., Taipei, Taiwan Tainan Plant: No.320, Sec. 3, Jungshan Rd., Gueiren Shiang, Tainan, Taiwan

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.2. Brief HistoryAug. 1961 Mr. Yang Kun-Mao founded Tainan Enterprises Mar. 1991 Yixing Yifeng Garments Co., China started production Nov. 1993 Developing its self-owned 「Tony Wear」 brand in ChinaMar. 1994 Tainan Enterprises Indonesia started mass production Jul. 1994 Yixing GaoQing Garments Co., China started production May. 1996 The second Plant of Tainan Enterprises Indonesia started productionJul. 1996 Initial Public Offering Jan. 1998 Indirect investing in Tai Yang Enterprises Co., Cambodia Apr. 1999 Tainan Enterprises listed on the TAISDAQ Market Aug. 1999 Introducing ERP System Oct. 1999 The second plant of Tai Yang Enterprises started production Sep. 2000 Tainan Enterprises transferred to list on the TAIEX market 2002 Launch of 「Camel Active」and 「Tony Jeans」in China2003 Launch of 「Undershop」in China2004 Launch of 「Emely」in ChinaOct. 2004 Investing in Jordan Dragon Garment Industry Co. Ltd.2005 Launch of 「New Man」in China.Feb. 2005 First Established Knitting factory in CambodiaApr. 2006 Acquired a washing plant in Cambodia Apr. 2007 Gingdao Tide Garments Co., China started productionMay. 2008 Close of the Jordan Dragon Garment Industry Co. Ltd.

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. 3. TAINAN GROUP

OEM

RETAIL

* INDONESIA* CMBODIA* TAIWAN* CHINA

TAIPEIHEADQUARTERS

CHINA

* TONY WEAR* TONY JEANS* CAMEL ACTIVE* THE UNDER SHOP* NEW MAN

TONYWEAR

EMELY •EMELY﹡EMELY SWEETIE

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. 4. Corporate Philosophy

Truth Kindness

Elegance

Respect for humanity

Comprehensive quality management

Worldwide Brand Name Recognition

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. Corporate Social Responsibility (CSR) award

• In March 2007, Tainan Enterprises was recognized by Common Wealth, Taiwan’s leading business magazine, for Corporate Social Responsibility (CSR) award.

• Tainan Enterprises was one of the top fifty companies recognized among 1,100 corporations.

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. Industrial Leader –Expansion from Core Ability

• In May 2006, according to Taiwan Business Weekly Magazine, Tainan Enterprises was elected as one of the top five companies from 1,000 manufacturers.

• The criteria are based on the revenue of and profitof CAGR over 25% for the past 10 years and recent 3 years are profitable .

• The most of elected companies are the leaders inthat industries. The strategies of business expansion for those companies are concentration their core business and extension in related business.

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. Industrial Pioneer –Globalization and Surviving in an adverse environment

• In January 2005, the Commonwealth Magazine published a special report on the progress and success of Tainan Enterprises.

• In 2006, this article was awarded by SOPA (Society of Publishers in Asia 2006 Awards for Editorial Excellence) as the best commercial

article.

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Forbes Asia – Best Under a BillionIn Oct. 2005, Tainan Enterprises was elected by Forbes Asia, for the regional Top 200 smaller companies.

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. 5. Competitive Advantage

Experienced management team

Strong financial foundation to support long term development

Platform for sharing resources and knowledge management

Market-Oriented product development strategies

International production network

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.6. Int’l Production Network (WITHOUT OUTSOURING)

TI2

ID

TI1

GQ

CN

TN

TW

TainanHeadquarter

TNHQ

Taipei office

Taiwan235employees5,000 dozens/month5 production lines

China1,560 employees11,700 dozens/month28 production lines

Cambodia9,000 employees67,000 (Woven52,000 and Knitted 15,000)dozens/month86 production lines(72.14)Washing Plant

Indonesia4,802 employees40,000 dozens/month47 production lines

Ownbrand

TY1

TY2

TY Camwell

TonyWear

Emely

Taiwan strengthQuick response order

China strengthSourcing & marketing information

Indonesia strengthHigh quality/value/fashion production

Cambodia strengthSpecial washing/large order production/knitting order

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. 7. Main Customers

MAST (13.91%)

ANNTAYLOR(7.60%)

GAP (36.26%)

ESPRIT (6.40%)

LIFUNG(8.22%)

MACY (10.47%)

MAST (12.95%)

GAP (28.75%)

MACY (10.22%)

2007 2008

LIZ (7.49%)

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. 8. Consolidated Financial Results (I)

Year

2004

2005

2006

2007

Amount(NT$mn) YoY (%)

Revenue

9.06

0.45

8,985

7,151

7,799

9,561

15.21

6.41

%

Gross Margin

(NT$mn)

Operating income

(NT$mn)

Pre-tax income

(NT$mn)

Net Income

23.0

512 640 56021.0

543 55223.7

20.0

768 874 699

2008

544 704 569

EPS (NT$)

(NT$)

4.48

4.47

5.50

4.21

619

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. 9. Consolidated Financial Results (II)

Year

2008

2004

2005

2006

Gross margin (%)

Operating margin (%)

Profitability

7.8

20.85

23.7

23.14

6.56

8.54

Net margin(%)

Financial leverage

ROAE(%)

ROAA(%)

Net debt/equity(%)

7.18 18.36 10.48

Net cash

7.73 19.0 11.85

Net cash

Net cash

7.78 20.83 11.65

Net cash2007 20.00 5.00 6.00 13.89 8.86

Net cash

Current asset/current liab (%)

3.2

3.8

3.17

3.03

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According to the corporate law & the company’s regulation Depends on the company’s short & long term operation plan and profitability Depends on the company’s cash position

10. Dividend Policy

2004

2005

Year

2006

2007

2008

EPS (NT$)

Cash dividend(NT$/share)

Stock dividend(NT$/share)

Payout ratio(%)

4.48

4.47

5.50

4.21

3.0

3.0

3.7

2.5

0.1

0.1

0.1

0.0

0.0

69.2

69.4

69.1

59.4

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Current operations of each business division are as follows:

1. TaiwanThis Plant’s accumulated sales in 2008 reached US$17.30m and its current gross

margin stands at around 8%~12%.

2. Indonesia The Indonesian plant was built up in 1993. The accumulated sales for 2008

reached US$78.70m, and the current gross margin is around 13%~18%.

3. CambodiaThe accumulated sales in 2008 reached US$90.50m and the current gross margin

stands at around 11%~17%.

4. ChinaFounded 16 years ago, the Yixing GaoQing plant focused on the Japan market

before. From 2003, the China factory began to place order for non-quota items from America. The accumulated sales in 2008 reached US$36.65m, and its gross margin of around 10~16%.

11. Current Operation (I)

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Retail brands

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1. TONY WEAR

Established 15 years ago, Tony Wear has become a well-known brand for men’s wear in China. We also developed a sub-brand “Tony Jeans” and licensed brand “Camel Active” from 2002 、“Undershop” from 2003 and “New Man” from 2005. As a result of the achievement in its marketing channel, the brand has started turning in handsome revenue. Total number of stores reached 650 by the end of 2008. The accumulated sales in 2008 reached US$60m and the gross margin is around 53%.

3. Emely

Established in 2004, Emely is focus on office ladies’ clothing. The sales territory is only in China right now. We also developed a sub-brand “Emely Sweetie” from 2008. As a result of management experience and successful marketing plan, the accumulated sales in 2008 reached US$6.27m and gross margin is around 50%. Total number of stores reached 116 by the end of 2008. All of Emely’s stores are franchise.

12. Own brand business

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THANKS