Company Overview of Fashion TV Holding Ltd.

The Board of Baofeng Modern International Holdings Company Limited announced that Baof International Limited entered into the License Agreement with Fashion TV Holding Ltd. Pursuant to the License Agreement, Fashion TV Holding Ltd. grants to the Group, within the Territory comprising of multiple Asian countries including Greater China, a license to manufacture and distribute Fashion TV branded slippers/flip-flops, sandals on an exclusive basis and other casual footwear on a non-exclusive basis. The License Agreement will commence from 9 February 2012 and will expire on the fifth anniversary of the earlier of (i) the first day on which the licensed products are used commercially and (ii) 8 July 2012, and will be renewable for an additional period of one year upon expiration until the License Agreement is terminated pursuant to the terms of the License Agreement. Under the License Agreement, Fashion TV Holding Ltd. also committed to a promotional campaign presenting the licensed products on the FashionTV Channel, which can be viewed by over 300 million people in 192 countries across the world. In return, the Group will pay certain license fees to Fashion TV Holding Ltd. during the course of the License Agreement.