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Last Updated: 2006.11.16

FR to set up a new subsidiary in the People’s Republic of China

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FAST RETAILING CO., LTD. applied to establish a fully owned subsidiary in China with the aim of strengthening development of the UNIQLO brand in mainland China going forward. Permission for that subsidiary was granted by the Chinese government on November 15, 2006. Details of the new subsidiary are listed below:     


2.Location     Shanghai city, People’s Republic of China

3.Business representative   Masa Matsushita
4.Paid-in capital     $6.25mln (approx: ¥0.7bln)
5.Business year end    End December

6.Shareholder makeup    100% FR subsidiary

7.Business activities  
   Retail of casual clothing under the UNIQLO brand in mainland China
   (To be known as the UNQILO China operation)
8.Establishment date    December 2006 (tentative)

9.Start of operations 
   Once established, the new company is expected to begin operations having received the
  transfer of our UNIQLO business in China from FAST RETAILING (JIANGSU)
  APPAREL CO., LTD. (paid-in capital: $13.30mln)

   Regarding the transfer of business involved in this case, this will be conducted in two stages
  in accordance with the relevant Chinese law. The first transfer is expected to take place by
  January 2007, and the second transfer by June 2007. Once the entire transfer has been
  completed, FAST RETAILING CO., LTD. plans to sell its 71.43% stake in FAST
  RETAILING (JIANGSU) APPAREL CO., LTD. to our joint venture partner CHENFENG
   Following the sale of that stake, FAST RETAILING (JIANGSU) APPAREL CO., LTD.
  will no longer be a consolidated subsidiary of FAST RETAILING.

10.Impact on FR consolidated results
   Since the majority of the UNIQLO China operation currently managed by FAST
  RETAILING (JIANGSU) APPAREL CO., LTD., will be accounted as performance
  under the new company once it starts operating, we expect any impact from the transfer on
  FR consolidated business results for the year to August 2007 to be minimal. However, we
  will disclose any details as soon as they become available.