China South City Proposes to Issue Senior Notes

Hong Kong, 4 January 201 1 -- China South City Holdings Limited (“China South City” or “the Company”, stock code: 1668.HK ), one of the leading developers and operators of large-scale, integrated logistics and trade centers in China , today announced that it proposes to conduct an international offering of Senior Notes (the “Notes”) targeting institutional investors in Asia, Europe and the United States (the “Notes Issue”).

The net proceeds of the Notes Issue will be used primarily to fund the properties under development and planned for future development (including land grant fees) and for general corporate purposes. Currently, the properties of the Company which are under development include: Phase Three of China South City Shenzhen, Phase One of China South City Nanning, Phase One of China South City Nanchang and Phase One of the Heyuan project.

The pricing of the Notes, including the aggregate principal amount, the offer price and interest rates, will be determined through the book building exercise . T he completion of the Notes Issue is subject to market conditions and investors’ interest. The Notes are proposed to be guaranteed by the subsidiaries of the Company (excluding those established under the laws of the PRC).

UBS and BOC International are the joint lead managers and joint bookrunners for the Notes Issue .

About China South City Holdings Limited

Established in December 2002, China South City Holdings Limited is one of the leading developers and operators of large-scale, integrated logistics and trade centers in China. China South City sells and leases trade center units to domestic and international suppliers, manufacturers and distributors of raw materials and finished goods. It offers a comprehensive range of trade, logistics and supporting facilities and services. China South City’s first project, China South City Shenzhen, is strategically located in the Shenzhen Longgang Pinghu Logistics Base and will have a total site area of over one million square meters and a GFA of approximately 2.6 million square meters when fully completed.   It serves five complementary light industries: (i) textile and clothing; (ii) leather and accessories; (iii) electronic accessories; (iv) printing, paper and packaging and (v) metals, chemicals and plastics.   To replicate the successful business model of China South City Shenzhen in other strategic economic regions in China, the Company has identified three new sites for properties planned for future development in Nanchang, Jiangxi Province (“China South City Nanchang”), Nanning, Guangxi Zhuang Autonomous Region (“China South City Nanning”), and Xi’an (“China South City Xian”).

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This communication is not for distribution in the United States. This communication and the information contained herein is not an offer to sell securities in   the United States.   Securities may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. person (as such term in defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)) absent registration pursuant to the Securities Act, or an exemption from registration.   Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the issuer and management, as well as financial statements. No money, securities or other consideration is being solicited by this communication or the information contained herein and, if sent in response to this communication or the information contained herein, will not be accepted.

This communication is not for distribution in the United States. This communication and the information contained herein is not an offer to sell securities in   the United States.   Securities may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. person (as such term in defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)) absent registration pursuant to the Securities Act, or an exemption from registration.   Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the issuer and management, as well as financial statements. No money, securities or other consideration is being solicited by this communication or the information contained herein and, if sent in response to this communication or the information contained herein, will not be accepted.