Leyou Successfully Raises US$37 Million --

The Largest Financing Deal in China’s Maternity Industry

Beijing, China (July 2, 2008) -- Leyou, the leading multi-channel retailer of products and services for pregnancy, babies, infants and toddlers in China, today announces that Deutsche Bank and AsiaVest Partners have invested US$37 million in Leyou, the largest multi-vendor retailer of maternity and baby products in China. This equity investment is also one the largest transactions in China’s specialty retail industry.

Leyou (www.leyou.com) is the most influential retailer in the pregnancy and baby, infants and toddler market in China, with products ranging from pregnancy care to food, baby care, gears, toys, books/music/video and clothing for babies, infants and toddlers up to 6 years old. In 1999 Leyou established China’s first vertical e-commerce website in this sector. Currently the Chinese market for pregnancy and baby care products is estimated to be US$30 billions a year.

“The multi-channel retail services offered by Leyou’s network of retail, catalog and web stores have proven to be tremendously popular to young parents in the markets we currently serve. In the next few years, we plan to take these services along with our supplier partners to 100 cities throughout China. We are pleased to be able to work towards this goal together with our capital partners Deutsche Bank and AsiaVest Partners, and contribute to the modernization of China’s retail industry.”, said Ms. Michelle Hu, CEO of Leyou.

“AsiaVest Partners is pleased to participate again in this round of financing with Leyou. Since the deployment of the last round of capital, not only has Leyou’s growth outpaced that of the industry, Leyou’s well-managed geographic expansion from Beijing to the Tianjin and Shenyang markets and the clear market leadership position Leyou has attained also attests to the capabilities of the management team and the growth potential of the company. I believe with this round of financing, Leyou will very quickly establish itself as China’s first national multi-vendor retailer for maternity and baby products”, said Mr. Peter Hsieh, General Manager of AsiaVest’s Beijing Office, of Leyou’s recent achievements

As to the specific plans for deploying the proceeds of this round of financing, Mr. Larry Kung, Leyou’s COO, comments, “Leyou will continue to leverage our unique strengths in advanced information management infrastructure to further expand our directly operated retail stores in key metropolitan markets throughout China, and expand our logistics infrastructure nationwide to offering a consistent service to young parents throughout China”, added Mr. Larry Kung, COO of Leyou.

About Leyou

Leyou (www.leyou.com) is China’s leading multi-channel specialty retailer for maternity, baby and toddler products, currently carrying seven categories of products from 530 suppliers in 23 countries, with more than 10,000 SKUs for maternity, baby food, accessories, gears, toys, books/music/video and clothing. In 1999, Leyou established China’s first online shop for baby products and over the years expanded its retail channels to include a direct mail business and a network of 29 multi-vendor retail stores in Beijing, Tianjin and Shenyang with the largest directly operated store area in operations nationwide.

Tel: (8610) 85861200
Fax: (8610) 85860439
Email：service@leyou.com

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