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June 22, 2007 -- In order to further its expansion into Western China, Parkson Retail Group Ltd acquired 40 percent of Mianyang Parkson. This makes Mianyang Parkson a wholly-owned subsidiary of Parkson Group.

Mianyang is the second largest city in Sichuan Province, it is 90km northwest of Chengdu.

"The strategic location of the Mianyang Parkson store further strengthens our position as the leading department stores in Mianyang city," Penoy Sze, spokesperson of Parkson Group, told Emerging China.

Parkson Group paid about 100 million yuan (US$13 million) for its stake in Mianyang Parkson. Through the acquisition, Mianyang Parkson would enhance the growth and profitability of the group and allow for greater efficiency and speed in the implementation of its business expansion plan, said the company.

The purchase follows Parkson Group's acquisition of Jiangxi Kaimei on April 16, 2007. For the last two years [2005 and 2006], Parkson Group has been involved in a number of acquisitions.

"Parkson Retail Group Ltd has stepped up expansion in China's mainland by buying out its local partners. Parkson's profit of 2006 surged 86 percent to 461 million yuan (US$60 million), fueled by consumer spending at its 36 Parkson stores and two Xtra-branded outlets in 26 mainland cities," reported by China Trade News.

"We signed the acquisition agreement on May 21 2007, and we might have finished the program with all fulfilled preconditions," says Sze.

"The precondition includes obtaining the approval of the board in Mianyang Parkson and getting the approval certificate about the acquisition from Ministry of Commerce of People's Republic of China," added Sze.

Parkson Retail Group Ltd, owned by Malaysia's Lion Group, has an extensive network of department stores covering 26 major cities in 18 provinces across mainland China. It was listed on the Hong Kong Stock Exchange on Nov.30, 2005. It ranked 37 on the China Top 100 Chain Retailers of 2006, according to a report released in April by the China Chain Store and Franchise Association.