PROFIT WARNING

The Board of Directors of Dapai International Holdings Co. Ltd. (the “Company”, together

with its subsidiaries, the “Group”) wishes to inform the shareholders of the Company and

potential investors that

tax for the quarter ended 30 September 2010 (“3Q 10”)

As stated in our announcement of the half year results for FY2010 made on 11 August 2010,

our luggage segment had faced some supply issue. We had sub-contracted all our luggage

manufacturing to a number of suppliers, of whom two major suppliers were unable to meet

our orders due to their labour shortage problems. As a result, our luggage sales had been

adversely affected.

The significant drop in sales and profits after tax for 3Q 10 was mainly attributable to (i) the

consequential decrease in sales of luggage products ; and (ii) the special discounts on

backpack products given to distributors in order to compensate their loss on luggage

shortage.

The Group has explored other avenues, including sourcing from other new luggage suppliers

and manufacturing a number of our luggage products in house, to reduce the impact of the

current luggage supply issue.

In order to ensure steady luggage supply in the long run, the Board has resolved that the

Group needs to build a new manufacturing facility specifically for luggage products.

The Company plans to release its 3Q 10 results on 9 November 2010 and further details of

the performance of the Company and of the Group will be disclosed then.

By Order of the Board

Chen Xizhong

Executive Chairman

12 October 2010