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Spanish Villarreal C.F. inks deal with Xtep
Jul '11
Xtep International Holdings Limited announced a five-year cooperation agreement with Spanish La Liga giant Villarreal C.F. As an official technical sponsor and exclusive provider of sportswear and accessories for the team, Xtep is further exploring opportunities around the world. Key players and staff of Villarreal attended a press conference today in Xiamen with Xtep's management to make the joint announcement. Leveraging the popularity of Villarreal in professional football, Xtep will increase its exposure at international sporting events.

According to the agreement, Xtep will provide Villarreal with sportswear and accessories during the five-year period from 1 July 2011 to 30 June 2016. The sponsorship includes a fee of 4,500,000 euros (equivalent to approximately HK$50,000,000) to be paid in five yearly installments as well assportswear. Players of the Spanish squad will participate in national and international tournaments, trainings, pre-game preparation and other club activities in sportswear adorned with the Xtep logo.

Established in 1923, Villarreal is one of the teams in La Liga, the Spanish Primera Division. The club finished fourth in the table for the 2010/11 season, and has qualified for the upcoming UEFA Champions League. Villarreal was the runner-up of La Liga 2007/08. It also received several honours, including semi-final spots in the Champions League and Europa League as well as the winner of UEFA Intertoto Cup.

The team is also dubbed “Yellow Submarine” due to its yellow home jersey, with famous footballers including defender Joan Capdevilla, who was on the team that won the 2010 World Cup; midfielders Marcos Antônio Senna da Silva and Santiago Cazorla González, who were key players in the European Championship; and forward Giuseppe Rossi and Nilmar Honorato da Silva, both popular strikers in Europe. Villarreal visited Hong Kong on 27 May 2011 to play Kitchee in the Canon Cup 2011, a game to raise funds for Japan after country was hit by an earthquake, tsunami and nuclear threat in March. It was one of the largest fundraising events for the Japanese victims.

Under the five-year agreement, the Xtep logo will appear in the television broadcast of Villarreal games and the venues for all matches played by the team in La Liga as well as Copa del Rey. Apart from air-time, the Xtep logo will also be shown on screens and score boards at the stadiums. The Company will have a full-page advertisement in each of the club's monthly magazines to further promote its brand.

For the sponsorship, Xtep plans to launch a new Villarreal-themed product line at a sales fair for the first quarter 2012. To promote the new products, Xtep will implement relevant strategies and carry out marketing campaigns accordingly.

Mr. Ding Shui Po, Chairman and Chief Executive Officer of Xtep, said, “We are very happy about the agreement. La Liga is one of the most influential football leagues and Villarrealan excellent team in this top division. The club is characterized by its team spirit, energy and determination, which is in line with Xtep's sports image and pursuit of excellence. We believe the sponsorship will become a big driver of our development in Europe and even the world, accelerate our pace to go global and establish our foothold in international football.”

Xtep International Holdings Limited

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