5 February 2008

Sports Direct International plc (“Sports Direct”) today announces that it has signed a strategic alliance

agreement in China with ITAT Group Limited (“ITAT”), a multi-brand apparel retailer, with operations

based in Shenzhen, China, to supply merchandise under some of Sports Direct’s portfolio of brands

to the larger ITAT’s stores.

 

ITAT is the largest network of multi-brand apparel retail chain stores in China. It operates a network of

over 700 stores in 275 cities in China. 

 

Sports Direct and ITAT intend to offer Sports Direct brands in ITAT’s Super Club stores, utilising a

store-in-store concept with an initial selling area of around 250 sqm per store. There are around 120

Super Club stores.

 

The sales areas will be staffed by ITAT employees. Sports Direct will supply goods to ITAT on a

consignment basis and will receive a proportion of the revenues generated. Sports Direct expects to

make a total investment of up to £20m between now and April 2009, to fund store fit-out, working

capital and related costs. The investment will be funded from existing facilities. It is expected that

there will be minimal earnings impact in the first full year of operation. 

 

Developing international distribution channels for the Sports Direct brands is a key part of the

company’s growth strategy. China is one of the world’s largest consumer markets, with a population

of approximately 1.3 billion. Its population continues to urbanize rapidly, and to enjoy fast growing

average household disposal income.

 

Commenting on the alliance, Dave Forsey, Chief Executive Officer of Sports Direct, said: “We are

delighted to be announcing our agreement to work with ITAT in China. This alliance offers us an ideal

opportunity to access ITAT’s fast growing store network, and through it, to be able to offer our brands

to the Chinese consumer.”

 

 

For further information please contact:

Financial Dynamics

Jonathon Brill/Andrew Dowler/Ben Foster

Tel: 0207 831 3113