Novel Denim Holdings Limited Completes Acquisition of NDP Holdings Limited.

Business & Apparel/Textiles Editors

HONG KONG--(BUSINESS WIRE)--Oct. 1, 2001

Novel Denim Holdings Limited (Nasdaq: NVLD) announced today that it has completed its recently announced acquisition of NDP Holdings Limited for $18.97 million, funded from a combination of short and long-term borrowings. NDP, through its subsidiaries, owns and operates an integrated fabric dyeing, printing and finishing facility in the Shenzhen region of the People's Republic of China ("PRC"), near Hong Kong, capable of processing 40 million meters of fabric annually. NDP sells primarily to fabric converters in Hong Kong, Southeast Asia and the PRC for eventual sales into the United States, Europe and Japan.

Novel Denim is a leading low-cost, vertically-integrated and flexible supplier of high-quality denim, chino, twill and knitted garments, as well as a broad range of woven and printed fabrics, to customers primarily in the United States and Europe. Novel Denim's facilities are strategically located in Mauritius, an island nation in the southwest Indian Ocean, Madagascar, South Africa and China. Novel Denim produces a broad and diverse range of jeans, chinos, shirts, skirts and jackets. The Company also produces and/or finishes an increasingly diversified and innovative range of denim, chino, twill and printed fabrics, including lightweights, alternative weaves and specialty colors and finishes. Novel Denim's customers include major retailers, wholesalers and manufacturers of leading designer and private label apparel brands.