Xtep applies to Taiwan authorities for TDR issue

Xtep International announced that on 29 November 2010, it made an application to the Taiwan Stock Exchange and the Taiwan Central Bank for the offering and listing of 250 million units of TDR (each unit representing 0.4 share), representing 50 million new shares to be issued by the company and 50 million existing shares to be offered by the vendors (Carlyle Asia Growth Partners III, L.P. and CAGP III Co-investment, L.P.), on the Taiwan Stock Exchange.

The 50 million new shares represent approximately 2.25% of the enlarged issued share capital of the company.

The TDR Issue is also subject to approval by the Taiwan Securities and Futures Bureau, and application for which will be made after the grant of approvals by the Taiwan Stock Exchange and the Taiwan Central Bank. The company will also apply to the Stock Exchange of Hong Kong for the listing of, and permission to deal in, the new shares on the Stock Exchange of Hong Kong.

The company's board of directors intends to use the net proceeds from the TDR issue for the business development in Taiwan, brand promotion and expansion of production facilities.