GENERAL: PPL: Pumpkin Patch to launch new childrenswear brand

26 Apr 2010 1:11 pm

PPL 26/04/2010 GENERAL

REL: 1311 HRS Pumpkin Patch Limited

GENERAL: PPL: Pumpkin Patch to launch new childrenswear brand

Pumpkin Patch today announced that it was in the final stages of developing a new stand alone childrenswear brand to be launched in the Australasian market within the next 3 months.

The Company's Chief Executive Officer Maurice Prendergast said "The new brand will focus on what is described as the playwear end of the market which accounts for over 70% of the $3billion a year Australasian childrenswear industry. It will allow us to participate in a very large part of the market that Pumpkin Patch does not currently cater for and creates long term growth opportunities for us".

Prendergast added "The introduction of a dual brand aimed at a different segment of the market is a model that has been successfully followed by numerous international clothing companies. This move will allow us to leverage our existing infrastructure and retail expertise for the benefit of both brands".

The Company says the new brand will be sold in stand alone stores separate from its current Pumpkin Patch stores. It plans to open an initial tranche of 6 to 8 stores by year end. The new brand stores are in addition to the 30 to 40 Pumpkin Patch stores the Company expects to open over the next 3 years in Australasia.

While the new brand will initially be launched in Australia and New Zealand the Company believes there are considerable long term growth opportunities for the new brand in existing global markets that Pumpkin Patch currently trades. Prendergast commented "We already have interest from a number of wholesale partners who see opportunities for the new brand in their home markets so we are encouraged about what we might be able to do internationally".

Prendergast added "We have worked hard over the last 2 years to strengthen the Balance Sheet and reduce debt levels to position us to take advantage of growth opportunities such as the launch of this venture. While we do not expect any immediate impact on earnings or debt levels we believe this move will be a driver of earnings and cash flow growth going forward. "

Prendergast concluded by saying "The launch of this brand is yet another step towards us becoming a truly global childrenswear company. Currently Pumpkin Patch product is sold in over 550 locations in 22 markets around the world and we expect that this launch will further enhance our ability to grow. Add this to the substantial global growth opportunities that the Pumpkin Patch brand has and the future looks very bright".

Pumpkin Patch Limited 26 April 2010

For further information please contact: Maurice Prendergast (Chief Executive Officer) or Matthew Washington (Chief Financial Officer) Pumpkin Patch Limited Phone +64 9 274 7088 End CA:00194163 For:PPL Type:GENERAL Time:2010-04-26:13:11:42

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