HAECO Strengthens Component Overhaul Capabilities

Hong Kong Aircraft Engineering Co. Ltd. (HAECO) and EADS Sogerma Services announced today, 26^th February 2002, that they have signed an agreement to set up a joint venture to support airlines in the Asia-Pacific region with ATEC 6 operation.

The 50/50 joint venture, EADS SOGERMA HAECO Services will be incorporated in Hong Kong with an investment of US$4M.

Aerospatiale ATEC 6 equipment is a sophisticated automatic test equipment for a range of avionics computers fitted on new generation aircraft such as Airbus A320/A330/A340 series and Boeing B777. ATEC 6 is capable of making rapid determination of serviceability of computers removed from aircraft, thereby cutting down turn around time. This in turn reduces inventory holdings, resulting in significant operational cost savings.

ATEC 6 will be installed and operated from HAECO's maintenance facility located at the new Hong Kong International Airport at Chek Lap Kok.

Mr. P.K. Chan, Deputy Chairman & Chief Executive Officer of HAECO, said, "The joint venture will enhance HAECO's component services capability and it is timely because of the increasing presence of new generation Boeing and Airbus fleet among the airlines in the region. It also makes good strategic sense to partner with EADS Sogerma Services and leverage their extensive experience in maintenance of Airbus aircraft."

Mr. Y. Richard, Chief Executive Officer of EADS Sogerma Services, said, 'The joint venture will provide an unprecedented "across the street" service to Airbus and Boeing customers in the Asia-Pacific Rim. It will provide cost effective maintenance for the airlines that are seeking reduced turn around time, inventory ownership cost optimisation and door to door support.'

HAECO, based in Hong Kong, has been providing comprehensive aircraft maintenance and engineering services to major carriers for more than 50 years. HAECO is part of the Swire Group.

As a Maintenance, Repair and Overhaul service provider, EADS Sogerma Services is a wholly-owned subsidiary of European Aeronautic Defence and Space Company (EADS), one of the largest aerospace service providers in Europe and one of the most experienced Airbus MRO provider.