Hong Kong Aircraft Engineering Company Limited ("HAECO") today announced plans to buy back 16,000,000 HAECO shares from I.G. International Management Limited ("I.G."), for a total consideration of HK$244 million. The shares represent approximately 8.73% of the current issued share capital of HAECO. The price, based on arm's length negotiations between HAECO and IG, has been set at HK$15.25 per share.

The share repurchase is conditional upon approvals being received from the Securities and Futures Commission, as well as the shareholders of HAECO at an extraordinary general meeting (EGM) to be convened on or around 18th October, 2000. As an interested party IG will abstain from voting at that meeting.

On completion, the repurchased shares would be cancelled. As a result, the total number of HAECO shares in issue would be reduced from 183,250,250 to 167,250,250. Other shareholders' interests would therefore be proportionately increased by approximately 9.6%.

Commenting on the share repurchase, HAECO's Director Finance Peter Kilgour said: "We believe the deal makes good sense, both for the company and its shareholders. It should enhance earnings per share and future financial returns for all shareholders. As indicated in our interim results, the general business outlook for the company remains positive. HAECO is well-positioned to benefit from the growth in air traffic through Hong Kong International Airport, and other aircraft maintenance investment opportunities within the region."

I.G. is a fund management subsidiary of Investors Group Inc., one of Canada's leading financial services companies which is listed (stock symbol IGI) on the Montreal, Toronto and Winnipeg stock exchanges.

HAECO provides comprehensive maintenance services, refurbishment and modification of commercial aircraft and the repair and overhaul of aircraft components. The company is based principally at Hong Kong International Airport with certain component and avionics overhaul activities based at Tseung Kwan O. It employs a total of some 3,700 staff in three primary operating divisions and a number of support departments.