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Florence Shih
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Reze Wong
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March 31, 2014

Alibaba Group and Intime Retail Group Announce Alibaba's Strategic Investment in Intime to Focus on Online to Offline Retail

Hong Kong, March 31, 2014 - Alibaba Group Holdings Limited ("Alibaba"), an operator of leading online and mobile marketplaces, and Intime Retail (Group) Company Limited (SEHK: 1833, "Intime"), one of China's leading department store operators, today announced that Alibaba has agreed to invest approximately US$692mn (HK$5,367mn) in Intime, and that the two companies have agreed to cooperate to develop online to offline (O2O) opportunities and provide a more convenient shopping experience.

Subject to customary closing conditions, Alibaba's investment in Intime will comprise of approximately US$214mn (HK$1,661mn) for a 9.9% equity interest in Intime and an approximate US$478mn (HK$3,706mn) subscription of convertible bonds issued by Intime, which if converted would give Alibaba no less than a 25% equity interest in Intime. In connection with this strategic investment, the two companies will explore opportunities to combine the strengths of Alibaba's Internet commerce technology and platforms with Intime's physical retail presence in high-end department stores and shopping malls as well as its retail website Yintai.com.

"We see significant opportunities to extend our e-commerce platform to physical retail, developing a more engaging, omnichannel and digitally-connected shopping experience," said Daniel Zhang, Chief Operating Officer of Alibaba Group. "We are excited to partner with Intime and to explore O2O marketing and technology initiatives that will allow for the increased integration of online technologies at physical points of sale."

Intime's Chairman Shen Guojun said, "Over our 16 years of operation, Intime has been a continuous innovator and welcomed opportunities to collaborate with industry-leading partners. It is our objective at Intime to exceed consumer needs and to deliver a better shopping experience through a new retail landscape."

The two companies have agreed to work together to deliver to consumers an online shopping experience connected to Intime's physical stores and membership system. For example, Alibaba's Tmall.com—China's leading online mall for quality, brand-name goods—will have access to Intime's offline inventory product database, enabling a broader product selection of international brands as well as fulfillment of online orders from Intime's physical stores. Harnessing Alibaba's experience in mobile Internet retail, customers will also be able to take advantage of more targeted promotions and membership benefits by connecting their smartphones via wi-fi and location-based technology in Intime stores. Customers will also be able to use virtual pre-paid cards in department stores and for mobile points of sale through the Alipay mobile wallet.

Alibaba and Intime have a track record of successful O2O collaboration. Intime's 35 stores partnered with Alibaba on November 11, 2013, piloting a model of offline product selection and online payment. The two companies also jointly promote in-store payment using Alipay. During the "Mobile Taobao 3.8 Life Festival" in 2014, Intime encouraged use of Alibaba's Mobile Taobao app to buy and send virtual gift cards.

About Alibaba Group

Alibaba Group's mission is to make it easy to do business anywhere. Founded in 1999, the company is committed to developing a technology-driven commerce ecosystem for the benefit of consumers, merchants and service providers. Alibaba Group's major businesses include Taobao Marketplace (www.taobao.com), China's most visited online shopping destination according to Alexa.com; Tmall.com (www.tmall.com), China's leading online mall for quality, brand-name goods; Alibaba.com (www.alibaba.com), the leading global wholesale platform for small businesses; AliExpress (www.aliexpress.com), a popular international e-marketplace for consumers; and Alibaba Cloud Computing (www.aliyun.com), a developer of platforms for cloud computing and data management. Alipay (www.alipay.com), China's leading online and mobile payment solution, is an affiliate of Alibaba Group.

About Intime Retail

Intime Retail (Group) Co. Ltd., Hong Kong Stock Exchange stock code: 01833, is a large diversified retail group operating in mainland China primarily engaged in the operation and management of department stores, shopping centers, and online retail. It is also involved in commercial real-estate development, property leasing, retail store management and other non-department store businesses. At the end of 2013, Intime operated 36 stores, including 28 department stores and eight shopping centers. Intime has more than 7.5 million offline SKUs in its product database and over 1.5 million members in its membership system.

Media Contacts

Alibaba Group

Florence Shih
+852 2215 5114
florenceshih@hk.alibaba-inc.com

Ashley Zandy
US: +1 917 655 7276
HK: +852 5490 2940
ashleyzandy@alibaba-inc.com

Brunswick Group

Angela Ni
+852 3512 5073
ani@brunswickgroup.com

Sard Verbinnen & Co.

Paul Kranhold
+1 415 618 8750
pkranhold@sardverb.com

Reze Wong
+1 415 618 8750
rwong@sardverb.com