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)                

                          PLACING OF EXISTING SHARES                           
                         BY A SUBSTANTIAL SHAREHOLDER                          

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,       
42,500,000 Shares to independent investors at the Placing Price of HK$14.7   
per Placing Share. The Placing Shares represent approximately 3.6% 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 495,426,352 Shares  
to 452,926,352 Shares or approximately 42.0% to 38.4% of the existing issued 
share capital of the Company.                                                

The Company has been informed by Mr. Ying, the Chairman and controlling
shareholder of the Company, that a placing agreement dated May 8, 2003 (Placing
Agreement) has been concluded on the terms summarised below.

Parties:

The parties to the Placing Agreement are:

 1. Michael Ying Lee Yuen (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. Merrill Lynch Far East Limited (Placing Agent).
   
Mr. Ying is the Chairman and controlling shareholder of the Company and holds,
through Great View, 495,426,352 shares of HK$0.10 each in the capital of the
Company (Shares), representing approximately 42.0% 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 Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited.

Number of Placing Shares:

42,500,000 Shares (Placing Shares), representing approximately 3.6% of the
existing issued share capital of the Company.

Placing Price:

HK$14.7 per Placing Share, representing a discount of approximately 4.2% to the
closing price of HK$15.35 per Share as quoted on The Stock Exchange of Hong
Kong Limited on May 7, 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 and Mr. Ying and no occurrence of an event of
force majeure.

Completion of the Placing:

May 12, 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 495,426,352 Shares to
452,926,352 Shares or approximately 42.0% to 38.4% of the existing issued share
capital of the Company.

                                                          By Order of the Board
                                                             John Poon Cho Ming
                                                             Executive Director

Hong Kong, May 9, 2003

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

                                                              Draft: 5 May 2003



END