Stone Group Holdings Limited

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Naobaijin tops the PRC healthcare product sales league for consecutive years Cumulative sales exceeded RMB 10 billion during the last decade Naobaijin is the “undisputed leading brand in the healthcare product industry”, according to the National Burea

(24 April 2008 - Hong Kong) – Naobaijin – a brand of Stone Group Holdings Limited (Stock code: 409) – retained its No. 1 position as China’s best-selling healthcare product brand during 2007, according to a nationwide survey conducted by the China Industrial Information Issuing Center of the National Bureau of Statistics of China. GoldPartner, another Stone brand, was also among the country’s top three healthcare product brands. In addition, Naobaijin has leapt well ahead of its competitors by attaining cumulative sales of more than RMB 10 billion during the past 10 years.

Naobaijin’s record as the best-selling brand in its category every consecutive year during the period from 2000 to 2003 and during the period from 2005 to 2007 further reinforces its popularity among consumers. The survey report explicitly confirms this leadership status, saying: “Naobaijin was again the champion in terms of its sales in China’s healthcare product market during 2007, with a market share of 6.17%. As a result of its excellent reputation among consumers, Naobaijin’s sales volume has exceeded RMB 10 billion over the past decade, an impressive record that has made it the undisputedly leading brand in the healthcare products industry.”

The report forecasts that health supplements which help to reduce blood lipid and glucose levels and lower blood pressure will be at the forefront of the market during 2008. The Stone Group once again demonstrated its perceptive market strategies by staging the pilot launch of Huangjin Xuekang, a health supplement product that has a supplemental beneficial effect on blood lipids, during the 2006 Spring Festival. Its sales figures have been steadily increasing, and its “young blood” image has proved highly successful. Huangjin Xuekang has further reinforced consumer recognition of the quality of the Group’s healthcare products, and it has been enthusiastically received in the market.

Furthermore, the report predicts that sales of healthcare products in China will grow by compound annual growth rate of around 15.24% and that they will reach about RMB 6,833 million a year in 2009. China’s consumers currently spend about RMB 31 per head on healthcare products each year, just 1/17 and 1/12 of the respective figures for those in US and Japan. The rapid and ongoing rise in demand for healthcare products reflects the increasing living standards of the country’s population, a trend that cannot be ignored. Healthcare products also account for a growing percentage of the country’s GDP, and they contribute huge profits to the nation’s economy.

Commenting on the survey report, Mr. Duan Yongji, Chairman of Stone Group Holdings Limited said: “Since they were first launched over 10 years ago, Naobaijin products have been well received in the market and by consumers, resulting in consistently strong sales figures. The brand’s excellent reputation for quality continues to create remarkable sales results. The report emphasizes that credibility is the key factor in the healthcare product market nowadays. We believe the brand’s trustworthiness will remain a key edge in our efforts to increase its market share. The Group will continue to take advantage of market opportunities, build up its sales network and develop new healthcare products in a sustainable and steady manner, in order to maintain its phenomenal success record.”

About Stone Group Holdings Limited
Stone Group Holdings Limited (Stock code: 409) is a company listed on the Hong Kong Stock Exchange. It principally engages in the IT electronics and media-related sectors, as well as sales of consumer healthcare products and investment activities. The Group's IT electronics and media-related businesses include the manufacture and distribution of traditional electronic products such as dot matrix printers and value-added tax control machines incorporating patented intellectual property. It also acts as an agent and distributor of industrial controllers, uninterrupted power system equipment, digital graphics, semiconductors and computers. The brands it represents include SIEMENS and FUJI. In addition, it operates Sunnet Café, a chain of Internet cafes. On the other hand, the Group’s healthcare product business centres around its Naobaijin and GoldPartner brands. It also launched Huangjin Xuekang (黃金血康), another healthcare product, on a pilot basis during the 2006 Spring Festival. In addition, Stone is an investor in Me To You, CCN and listed securities; it has established a joint venture engaged in the exploration of mineral resources in the Middle East and other areas; and it engages in ancillary businesses.

For further enquiries, please contact:
Ms Josephine Leung / Ms Fiona Tong
Stone Group Holdings Limited
Tel: 2579-1166 / 2115-6347
Fax: 2880-5573
E-mail: investor@stone.com.hk Ms Miranda Lui
Ketchum Hong Kong
Tel: 3141-8028
Fax: 2510-8199
E-mail: miranda.lui@knprhk.com

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