361 DEGREES INTERNATIONAL : Announcements and Notices - Operations Update for the Fourth Quarter of 2016

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361 Degrees International Limited 3 6 1 度 國 際 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1361)

OPERATIONS UPDATE FOR THE FOURTH QUARTER OF 2016

This announcement is published on a voluntary basis by the board of directors (the ''Board'') of 361 Degrees International Limited (''361°'' or the ''Company'', together with its subsidiaries, the ''Group'').

The Board is pleased to provide the following operational update in respect of the Group's business for the fourth quarter of 2016.

The Group continues to operate on its franchised business model with 31 exclusive distributors. By the end of the fourth quarter of 2016, there were 184 new stores, against 464 closures, bringing the total to 6,357 outlets. The Group considers an optional scale to maintain the store account at approximately 6,500 level, and continues to focus on increasing store efficiency.

361° Core Brand

Based on data from a sample of 3,543 outlets which have been in operation for more than 24 months, the Group delivered the following statistics relating to their retail performance for the fourth quarter of 2016.

Same store sales growth: 7.5%

Average retail discount: 25%

Channel inventory: 4.1 times

Sample size: 3,543

361° Kids Brand (independently-run business unit)

By the end of the fourth quarter of 2016, there were 103 new stores, against 334 closures, bringing the total to 2,000 points of sale for 361° Kids, which is an independently run business unit.

Same store sales growth: 7.7%

Channel inventory: 4.1 times

Sample size: 1,157

This announcement is made based on a preliminary review of the draft unaudited operational data of the Group and the information currently available to the Board, and is not reviewed or audited by the Group's auditors.

The data do not constitute, represent or indicate the full picture of the Group's total revenue or financial performance and the information contained in this announcement may be subject to change and adjustment.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the Company's securities.

By order of the Board

361 Degrees International Limited Choi Mun Duen

Company Secretary

Hong Kong, 19 January, 2017

As at the date of this announcement, the Directors are as follows:

Executive Directors: Mr. Ding Wuhao, Mr. Ding Huihuang (Chairman), Mr. Ding Huirong and Mr. Wang Jiabi

Independent Non-Executive Directors: Mr. Tsui Yung Kwok, Mr. Liao Jianwen and Mr. Li

Yuen Fai Roger.