Buffalo, NY – Today, New Era Cap Co., Inc., the leading headwear designer and manufacturer, announced that it has signed a partnership agreement with Mainland Headwear Holdings Ltd., one of Asia’s leading distribution, design and retailers that produces headwear under license for Timberland, Warner Brothers, NCAA, NASCAR and Titleist. The partnership will allow New Era to service its growing demand in Europe and other international markets as well as gain entry into the lucrative and expanding Chinese market where Mainland already has a strong retail presence.

As part of the seven-year agreement, Mainland Headwear will manufacture and produce headwear for New Era Cap. Mainland will also grant New Era an option to purchase five percent of the common stock of Mainland and an additional 15 percent during the first two years of the agreement.

“As our global economy expands and new markets emerge, New Era will continue to identify new opportunities for growth,” said Christopher H. Koch, CEO at New Era. “We believe this partnership is mutually beneficial to both companies and will provide New Era access to lucrative Asian retail markets and potentially millions of new and enthusiastic customers.”

“We are extremely pleased to establish a long-term partnership with New Era, the global leader in the headwear and sports apparel market, as well as a major retail supplier in its own right,” said Ngan Hei Keung, Chairman of Mainland Headwear Holdings Limited, “This agreement represents a substantial and stable source of revenue for our group and holds the potential for retail collaborations for both our companies.”

The largest and fastest growing headwear designer and manufacturer in the world, New Era has an 88-year-old tradition of creating quality caps that transcend time, culture, sport and fashion. Although New Era is rooted in sports heritage as the official on-field cap of Major League Baseball, the company has evolved into a brand that can be seen everywhere from the fashion runways of Paris to the music videos on MTV.

Along with the new business opportunities, this unique partnership provides New Era with:

• Greater oversight over manufacturing and distribution: Mainland Headwear is a widely respected company with a reputation for quality craftsmanship, fairness and honesty. This partnership will help ensure that New Era products are made to its high standards and distributed properly in the global market.

• Enhanced ability to monitor labor conditions: As a participating member of the Fair Labor Association, Mainland Headwear will act in partnership with New Era to ensure that its workers receive a fair living wage and that their work environment meets all safety and international standards.

• The ability for New Era to recoup the loss of production capacity resulting from the company’s recent decision to stop business with another Chinese supplier.


About New Era Cap Company, Inc.
Founded in 1920, New Era Cap Company, Inc., the leading headwear manufacturer and creator of New Era Apparel, brings to market products that transcend time, culture, sport and fashion. Producing more than 35 million caps per year, New Era is the exclusive manufacturer and marketer of the official on-field cap worn by every Major League Baseball team and their Minor League affiliates and maintaining agreements with other licensed entities. On the street, New Era is known as the Originator of the True Fitted for its signature cap style, the 59FIFTY. The Company, headquartered in Buffalo, New York, employs approximately 1,700 people world-wide in New York, Alabama and at its operations in Canada, Europe, Japan and Hong Kong. New Era is a ‘Category A’ affiliate of the Fair Labor Association.


About Mainland Headwear Holdings Limited
Mainland Headwear was established in 1986 and listed on the Hong Kong Stock Exchange in 2000. The Group is principally engaged in the design, manufacture and distribution of quality headwear. With its own manufacturing plants in Shenzhen, Dongguan and Panyu, the Group manufactures a wide range of licensed and branded headwear including baseball caps, bucket hats, winter caps, Gatsby hats, headbands and sun visors. Most of the Group’s products are sold to overseas markets, with USA as its major market. Its well known customers include such household names as Kangol, Timberland, Warner Brothers, MLB, NCAA, NASCAR, Titleist, Quiksilver, and Budweiser. Currently, the Group produces over 30 million hats a year in more than 5,000 designs. In 2004, the Group obtained the headwear licence for the Beijing 2008 Olympic Games. Additionally, the Group commenced its retail business in 2004 to open headwear outlets in Hong Kong and the PRC under the LIDS store brand. In March 2005, the Group obtained the exclusive license to design, manufacture and sell all SANRIO products in the PRC. In June 2006, the Group acquired Kangol Headwear (Panyu) Limited which manufactures about 85% of “Kangol” headwear, extending the Group’s product offerings to fashion headwear. In March 2007, the Group obtained the worldwide exclusive manufacturing rights and exclusive distribution rights in Greater China and Japan of The Fédération Internationale de Football Association ("FIFA") branded headwear between 2007 and 2014. In January 2008, the Group formed a joint venture with Yue Yuen Industrial (Holdings) Limited (stock code: 551) and Large Forever Limited to invest in Keen Idea Group Ltd., a headwear manufacturer based in Vietnam, and became its largest shareholder. The strategic joint venture gave the Group an immediate foothold in Vietnam and present cooperation opportunities between the Group and Yue Yuen in the retail business sector. The Group also acquired 100% stake of a tourist-souvenir retailer in the same month to further expand its retail network.

CONTACT
Dana Marciniak, New Era Cap
(716) 604-9259
dana.marciniak@neweracap.com

John DeWaal, New Era Cap
(716) 604-9000 ext. 1137
john.dewaal@neweracap.com