Talbots Enters Sourcing Agreement With Li & Fung

The Talbots Inc. – a Hingham, Mass.-based retailer of women’s apparel and accessories – has entered
into an agreement with Hong Kong-based Li & Fung Ltd. – a brand and retail supply chain manager
– in which Li & Fung will be the exclusive global apparel sourcing agent for the Talbots brand,
effective September 2009. Li & Fung will be the exclusive agent for nearly all of Talbots’
apparel products, and a non-exclusive agent for swimwear, intimate apparel, footwear, jewelry,
handbags and accessories.

“By leveraging Li & Fung’s position as a best-in-class sourcing agent, we will be able
to simplify and centralize our sourcing activities, which we anticipate will further reduce our
costs of goods sold and internal operating expenses, while improving our time to market,” said
Trudy F. Sullivan, president and CEO, Talbots. “Together with Li & Fung, we plan to develop a
single, world-class supply chain organization that will strengthen our competitive position.”

“Under Talbots new leadership, we see great potential for their business going forward,”
said Bruce Rockowitz, president, Li & Fung (Trading) Ltd. “With our strong network of over 80
offices in over 40 economies, we are confident that our dedicated merchandising team will be able
to further strengthen the positioning of the Talbots brand as we deliver the highest quality

August 25, 2009