Watch

Tweet TWEET

Mecox Lane Shareholders Approve Formation of JV with Giosis

Mecox Lane Shareholders Approve Formation of JV with Giosis

Mecox Lane and Giosis to Relaunch M18.com as Marketplace Platform

SHANGHAI, China, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Mecox Lane Limited ("Mecox
Lane" or the "Company") (Nasdaq:MCOX), which operates one of China's leading
online platforms for apparel and accessories, today announced that the
proposal of a transaction with Giosis Pte. Ltd. ("Giosis") to form a joint
venture, Giosis Mecoxlane Ltd. ("Giosis Mecoxlane"), to operate a dynamic
online marketplace in China on the M18.com domain was approved at the
Company's extraordinary general meeting of shareholders held in Hong Kong on
December 19, 2012.

Mecox Lane's shareholders adopted the following ordinary resolutions proposed
by the Company:

  1. That any and all transactions contemplated in the Subscription and
  Contribution Agreement dated as of November 20, 2012 by and among the
  Company, Giosis Pte. Ltd., Giosis Cayman Ltd. and other parties therein be
  approved and ratified;

  2. Authorization of each of the Directors to take any and every action that
  might be necessary to effect the foregoing resolution as such Director, in
  his or her absolute discretion, thinks fit.

Mecox Lane and Giosis expect to complete the transaction as soon as
practicable, subject to the satisfaction or waiver of the conditions to
closing set forth in the transaction documents. Upon the closing of the
transaction, Giosis would initially hold 60% and Mecox Lane would initially
hold 40% of the outstanding equity interests of Giosis Mecoxlane, assuming the
conversion of the Series A Preferred Shares of Giosis Mecoxlane.

Mr. Young Bae Ku, Giosis founder and chief executive officer, will lead the
joint venture; Mr. Ku and Mr. Alfred Gu, Mecox Lane's director and chief
executive officer, will serve as co-chairmen.

Mecox Lane expects to sell its branded merchandise, including apparel, on the
re-launched Giosis Mecoxlane online marketplace, as well as on other
third-party e-commerce websites in China. Mecox Lane will continue to market
and sell merchandise through its call center and physical stores.

The Company is in separate discussions with Giosis Mecoxlane to utilize Mecox
Lane's warehouses, distribution centers and delivery network. Mecox Lane also
plans to form a new company to serve the logistics and order-fulfillment needs
of its customers and third parties.

Mr. Gu said, "We believe this joint venture can establish itself in China's
exciting and rapidly growing marketplace-style e-commerce sector by leveraging
the China market expertise of Mecox Lane, the brand recognition of M18.com,
and the technical and operational know-how of Giosis.

"Independently, Mecox Lane will refocus on its core strengths of providing
fashionable, value-for-money branded apparel and other products as the Company
follows through on its customer-service initiatives."

About Mecox Lane Limited

Mecox Lane Limited (Nasdaq:MCOX) operates one of China's leading online
platforms for apparel and accessories as measured by revenues in 2011. The
Company offers a wide selection of fashion products through its www.m18.com
e-commerce website and physical store network. Product offerings include
apparel and accessories, home products, beauty and healthcare products and
other products, under the Company's own proprietary brands, such as Euromoda
and Rampage, as well as other selected third-party brands, including
established international and Chinese brands in addition to independent and
emerging brands. For more information on Mecox Lane, please visit
http://ir.mecoxlane.com.

The Mecox Lane Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11140

About Giosis Pte. Ltd.

Giosis Pte. Ltd. ("Giosis") operates an extensive online marketplace
(qoo10.com) to provide a wide range of consumer-oriented items, including
women's and men's apparel, bags and shoes, jewelry and watches, cosmetics,
body care and health products, sports and outdoor equipment, toys, computers
and consumer electronics, automotive products, household goods, books and
movies. Based in Singapore, Giosis operates online marketplaces in Singapore,
Malaysia, Indonesia, Japan and Hong Kong. For more information, please visit
http://www.qoo10.com.

Safe Harbor: Forward Looking Statements

This press release contains forward-looking statements made under the "safe
harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements can be identified by terminology
such as "may," "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "aims," "estimates," "confident," "likely to" and similar
statements. Among other things, the quotations from management in this press
release, as well as the Company's strategic and operational plans, contain
forward-looking statements. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including
but not limited to the following: the Company's business strategies and
initiatives as well as its business plans; the Company's future business
development, results of operations and financial condition; changes in the
Company's revenues and certain cost or expense items; the Company's
expectations with respect to increased revenue growth and its ability to
sustain profitability; the Company's products under development or planning;
the Company's ability to attract customers and further enhance its brand
recognition; trends and competition in the e-commerce and apparel and
accessories industry; the e-commerce and apparel and accessories industry in
China may not grow at the rates projected by market data, or at all; the
failure of the markets to grow at the projected rates may have a material
adverse effect on the Company's business and the market price of its ADSs; in
addition, the rapidly changing nature of the e-commerce and apparel and
accessories industry in China subjects any projections or estimates relating
to the growth prospects or future condition of the Company's market to
significant uncertainties. If any one or more of the assumptions underlying
the market data turns out to be incorrect, actual results may differ from the
projections based on these assumptions. You should not place undue reliance on
these forward-looking statements.Further information regarding these and
other risks is included in the Company's annual report on Form 20-F as well as
in its other filings with the Securities and Exchange Commission. All
information provided in this press release is current as of the date of the
press release, and the Company undertakes no duty to update such information,
except as required under applicable law.

CONTACT: For investor and media inquiries please contact:

         In China:
        
         Phili Xu
         Mecox Lane Limited
         Tel: +86-21-6495-0500 or +86-21-5464-9900 Ext. 8161
         Email: ir@mecoxlane.com
        
         Nicholas Manganaro
         Ogilvy Financial, Beijing
         Tel: +86-10-8520-6139
         Email: mcox@ogilvy.com
        
         In the U.S.:
        
         Jessica Barist Cohen
         Ogilvy Financial, New York
         Tel: +1-646-460-9989
         Email: mcox@ogilvy.com

Mecox Lane Limited Logo
 
Press spacebar to pause and continue. Press esc to stop.