FEBRUARY 2008

18 February 2008

We refer to The Business Times report headlined "Volatile market may see

FJB close 5 shops" published on February 15, 2008, and wish to clarify that it

was misleading in several respects.

First, during his meeting with journalists and investment analysts, Mr. Nash

Benjamin, Group CEO of F J Benjamin, did not link the closure of the shops to

the volatile conditions currently experienced in the global financial markets.

The closures mentioned are planned as part of the Group's constant review of

its retail network, when leases come up for renewal at the end of a tenancy

period, to ensure that its stores command prime locations, and are efficient

and profitable. Such a review is carried out constantly irrespective of market

conditions and is consistent with the modus operandi of retail organisations.

Second, the report omitted to mention that Mr. Benjamin has said that the

Group is planning to open ten more stores in the second half of its financial

year ending June 30, 2008. This omission, coupled with the emphasis on the

closure, gives the misleading impression that the Group is shrinking rather

than growing its retail footprint in the region.

Third, the report gave the impression that the closure of the 5 shops will take

place in Singapore. Mr. Benjamin had, in fact, said this number was for 5

countries in the region and not just in Singapore.

F J Benjamin embarked on one of its fastest expansions last quarter, opening

22 stores in the region. While it expects consumer spending to be dampened