Shareholders Q&A

Dear Shareholders,

As you know, RCG values the support of its shareholders. To continue to improve our communication with you, we are pleased to implement a new system for answering your questions.

We have set up a new email address  to which all shareholders should direct your questions to. We will regularly consider these questions, and select and answer the questions that have been raised most frequently. These questions and answers will be published in a dedicated FAQ section in the investor relations section of our website under ‘Shareholders’ Q&A;’. The information used to answer questions will be information that is freely available in the public domain.

On behalf of the Board of RCG, I would like to express our gratitude for your continued support.

Investor Relations Team 
RCG Holdings Limited

Please find the below latest Shareholders’ Q&A; in detail:

1. What specific actions have been taken by the Group in terms of cost savings in view of the global economic situation in the second half of 2011?

In the second half of 2011 the global economy has remained volatile as uncertainty continues. As a part of an ongoing programme of cost savings, the Group has sought to streamline its management and operations, for example by consolidating several operations in China to the Group’s Beijing office. The Group will continue to monitor the economic developments and act accordingly to save costs.

2. With regard to Danny Chew’s appointment as Acting CEO, how will he manage to divide his time between leading the Middle East office and handling the Group’s corporate activities? How does the appointment affect the Middle East operations?

Mr. Chew divides his time between the Group’s corporate affairs from the Group’s various offices, whilst also leading the Middle East office. As the Middle East office is an established office within the Group, it also has a strong administration, sales, and engineering team to serve our customers in that region. The Board has closely monitored this scenario since Mr. Chew’s appointment and has concluded that there is no negative impact on the Middle East operations.

3. RCG appointed two new Executive Directors in September 2011. Can RCG tell investors about their background and their respective roles in the Group?

RCG is delighted to have welcomed the two new Executive Directors to the Board, who between them will have responsibility for the Group’s business development in China. Mr. Li has significant business experience in managing manufacturing operations as well as sales in China.  Prior to joining the Group, Mr. Zhang was engaged in a home and office security and surveillance systems business in China where he spearheaded sales and operations of the company.  With their vast business connections in China the Board believes that Mr. Li and Mr. Zhang will strengthen the Group’s business development in the important market of China and bring invaluable experience to the Group as a whole.

4. RCG has mentioned tightening its trading policy with the distributors in the 2011 Interim Report. Can the Group elaborate on this point?

RCG has opened dialogues with its distributors and explained the Group’s new trading policy aimed at improving cash collections and putting forward credit terms which are more favorable to RCG. When the Group’s distributors request products from RCG, the approval of quantity of products will be based on their historical payment to the Group as well as their overall business performance.