Peace Mark (holdings) limited announces the formation of a joint venture for Luxury Brand Timepieces distribution and retail for the Greater China market with Tourneau US leading watch retailer*.

Read the Peace Mark announcement through the link below:

http://www.peacemark.com/webcasts_src/5.pdf

source: www.peacemark.com

* On February 16, Tourneau has opened its 22nd store in Scottsdale, Arizona. Measuring about 1,500 square feet, the store will showcase Tourneau's collection of more than 8,000 watches. (source: wwwnationaljeweler.com)



PM Press Release Hong Kong 2006-02-13

Peace Mark Forms Joint Venture with Tourneau and IWG * * * Extends Luxury Timepiece Distribution And Retail Network in Greater China Region

Peace Mark (Holdings) Limited (“Peace Mark” or the “Company”, together with its subsidiaries, the “Group”) (SEHK code: 304) today announced that on 10 February 2006, the Group entered into a non-legally binding Letter of Intent with Tourneau Inc. (“Tourneau”) and
International Watch Group (“IWG”) to form a joint venture company, Peace Mark Tourneau (Holdings) Limited (“Peace Mark Tourneau”). The Group targets
to complete the transactions by the end of March 2006. The new company will engage in the supply, wholesale, retail and distribution of luxury-brand
timepieces to the high-end market in Mainland China, Hong Kong, Macau and Taiwan.

The total share capital of Peace Mark Tourneau will be about US$15 million (approximately HK$ 117 million). The Group will hold 65% of its total issued share capital, while Tourneau and IWG will hold 25% and 10% respectively. The retails outlets of the joint venture will be operated under the name of “Tourneau” and 30 stores are expected to be opened in five years.

Mr. Patrick Chau, Chairman of Peace Mark, said, “We are delighted to form this joint venture with Tourneau and IWG as we believe luxury brand timepieces have huge potential in the Greater China market. With Tourneau’s world-class operations and experience in the areas of marketing, logistics, distribution and retail management, as well as strong relationship with luxury brand owners, I am confident that Peace Mark Tourneau can look forward to becoming a leading retail operator in the Greater China region for luxury brand timepiece products. “

Mr. Howard R. Levitt, President of Tourneau said, “With the China economy booming robustly and consistently, we see a growing market for luxury timepieces in Mainland China. Combining our expertise with Peace Mark’s experience and knowledge of distribution in the Greater China region, we expect to generate maximum synergy that will allow us to capture a marked share of the luxury timepiece market in Greater China. ”

Established in 1900, Tourneau is the preeminent sources for new and pre-owned watch in the United States. It distributes and retails over 100 well-known brands, including Breitling, Cartier, Jager-LeCoultre, Omega, Patek Philippe, Rolex and Tag Heuer in more than 8,000 unique styles. A watch and jewelry distributor and a respected retailer, Tourneau is recognized in the Guinness World Records as [operating] the largest watch store in the world. Tourneau tops specialty store performers in sales per
square foot, a distinction that applies not only to the watch and jewelry categories, but encompasses retail categories as whole.

IWG is one of the leading watch manufacturers and distributors in the United States. It owns various fashion and watch brands including Lucien Piccard.