CFS International Inc.: Proposed Privatization Transaction.

TORONTO -- CFS International Inc. (TSX VENTURE:CFY) announces that it has received a non-binding proposal from Ports International Enterprises Inc. (PIEL), its controlling shareholder, to privatize CFS on the basis that the shareholders of CFS, other than PIEL, would indirectly receive cash of $3.75 per CFS share. PIEL and its shareholders beneficially own or exercise control or direction over approximately 31,396,100 CFS shares, representing approximately 86.92% of the outstanding shares of CFS. PIEL has proposed that the transaction proceed by way of an amalgamation of CFS and a subsidiary of PIEL under the Business Corporations Act (Alberta) which would require approval of the shareholders of CFS.

The proposed transaction is subject to negotiation and execution of definitive agreements, PIEL arranging financing on terms satisfactory to it, approval of the Boards of Directors of both CFS and PIEL, approval of the shareholders of CFS including approval by a majority vote of the minority shareholders of CFS, and receipt of all necessary regulatory approvals.

CFS expects that its Board of Directors will establish a committee comprised of independent directors of CFS to consider the proposed transaction and to respond to PIEL's proposal.

CFS International Inc., through its subsidiaries, operates the largest upscale fashion wear retail chain in China under the "Ports International" and "BMW" banners. The Company's other operations also include retailing in Hong Kong and Canada, and trading, manufacturing and wholesaling of private label and fashion garments in Canada, China and Hong Kong.

CFS' shares are traded on the TSX Venture Exchange under the symbol "CFY".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

CFS International Inc. (TSX VENTURE:CFY)