The Stock Exchange of Hong Kong Limited takes no responsibility for the
contents of this announcement, makes no representation as to its accuracy or
completeness and expressly disclaims any liability whatsoever for any loss
howsoever arising from or in reliance upon the whole or any part of the
contents of this announcement.

This announcement is for information purposes only and does not constitute an
invitation or offer to acquire, purchase or subscribe for securities. This
announcement is not an offer of securities for sale in the United States.

                            ESPRIT HOLDINGS LIMITED                            
               (incorporated in Bermuda with limited liability)                

                        EXCEPTIONAL PRICE MOVEMENT AND                         

                          PLACING OF EXISTING SHARES                           
                         BY A SUBSTANTIAL SHAREHOLDER                          

The directors of the Company have noted the recent increase in the price of  
the Shares and wish to state that they are not aware of any reasons for such 
increase save as disclosed in this announcement.                             
                                                                             
The Company has been informed by Mr. Ying, the Chairman and controlling      
shareholder of the Company that the Placing Agreement has been concluded     
pursuant to which the Placing Agent will place, subject to conditions,       
50,000,000 Shares to independent investors at the Placing Price of HK$23.94  
per Placing Share. The Placing Shares represent approximately 4.2% of the    
existing issued share capital of the Company. Upon completion of the placing,
Mr. Ying's interests in the Company will be reduced from 452,926,352 Shares  
to 402,926,352 Shares or approximately 38.04% to 33.84% of the existing      
issued share capital of the Company.                                         

The directors of the Company have noted the recent increase in the price of the
Shares and wish to state that they are not aware of any reasons for such
increase save as disclosed in this announcement.

The Company has been informed by Mr. Michael Ying Lee Yuen (Mr. Ying), the
Chairman and controlling shareholder of the Company, that a placing agreement
dated October 2, 2003 (Placing Agreement) has been concluded on the terms
summarised below.

Parties:

The parties to the Placing Agreement are:

 1. Mr. Ying;
   
 2. Great View International Limited, a company incorporated under the laws of
    the British Virgin Islands (Great View) and wholly-owned by Mr. Ying; and
   
 3. Credit Suisse First Boston (Hong Kong) Limited (Placing Agent), who is not
    a connected person of the Company as defined in the Rules Governing the
    Listing of Securities on The Stock Exchange of Hong Kong Limited (Listing
    Rules).
   
Mr. Ying is the Chairman and controlling shareholder of the Company and holds,
through Great View, 452,926,352 shares of HK$0.10 each in the capital of the
Company (Shares), representing approximately 38.04% of the existing issued
share capital of the Company.

Placees:

The placees of the placing (the Placing) will be independent investors who are
not connected persons of the Company as defined in the Listing Rules.

Number of Placing Shares:

50,000,000 Shares (Placing Shares), representing approximately 4.2% of the
existing issued share capital of the Company.

Placing Price:

HK$23.94 per Placing Share, representing a discount of approximately 5% to the
closing price of HK$25.20 per Share as quoted on The Stock Exchange of Hong
Kong Limited on Thursday, October 2, 2003.

Conditions of the Placing:

The Placing is conditional upon, inter alia, there having been, prior to
completion of the Placing, no breach of the representations, warranties and
undertakings given by Great View.

Completion of the Placing:

Completion of the Placing is currently expected to take place on October 7,
2003.

Upon completion of the placing, Mr. Ying's interests in the Company, all of
which are held through Great View, will be reduced from 452,926,352 Shares to
402,926,352 Shares or approximately 38.04% to 33.84% of the existing issued
share capital of the Company.

The directors of the Company also confirm that there are no negotiations or
agreements relating to intended acquisitions or realisations which are
discloseable under paragraph 3 of the Listing Agreement, neither is the Board
aware of any matter discloseable under the general obligation imposed by
paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive
nature.

Made by the order of the Board, the directors of which individually and jointly
accept responsibility for the accuracy of this announcement.

                                                          By Order of the Board
                                                             John Poon Cho Ming
                                                             Executive Director

Hong Kong, October 2, 2003

This announcement can also be accessed through our internet site at
www.espritholdings.com

                                                          
END