Swire Pacific Forms Joint Venture

Swire Pacific Ltd. (HKEX: 0019 and 0087; LSE: SWRA; NYSE: SWRAY and SWRBY) has today announced the formation of a joint venture to be named SkyWorks Capital Asia Ltd., with SkyWorks Capital and Air China Development Corp. (Hong Kong) Ltd., a subsidiary of Air China Ltd. Headquartered in Hong Kong, the company will provide a range of financial advisory services to aviation industry participants throughout the Asia Pacific region including airlines, banks, lessors and investors. Each partner will assume one-third ownership.

Philip Chen, Deputy Chairman of Cathay Pacific Airways and Chairman of John Swire & Sons (China) Ltd., has been named Non-executive Chairman of the new joint venture and Ian McBain, who also serves as a Managing Director of SkyWorks Capital, has been named Chief Executive Officer.

Martin Cubbon, Finance Director of Swire Pacific, said, "Both Swire Pacific and Air China are recognised to have a proven track record in the field of aviation. Having consistently invested in this business for over 60 years, Swire Pacific remains a committed player in this global industry."

Fan Cheng, Executive Director, Senior Vice President and Chief Financial Officer of Air China, added, "Aviation in China is going through an exciting phase of expansion and development, and we are very pleased to be a partner in this joint venture. SkyWorks Capital Asia will further enhance the two companies' foothold and skill sets in this area."

Thomas W. Mahr, Managing Director and Chief Executive Officer of SkyWorks Capital, commented, "The SkyWorks Capital Asia joint venture creates virtually overnight a firm with unmatched expertise and experience in providing financial advisory and investment banking services to the aviation sector. Our partners at Air China and Swire Pacific will provide unparalleled access and relationships throughout the Asia Pacific region. Given the dramatic growth forecasted for airlines and related aircraft deliveries throughout the region, SkyWorks is excited to open an office in Hong Kong dedicated to serving our clients."

SkyWorks Capital, LLC, headquartered in Greenwich, CT. USA, provides expertise to participants in the aviation and aerospace sectors across a broad spectrum of financial products. The Company provides advisory services on asset-based financings, aircraft selections, financial restructuring, debt and equity offerings, strategic assessments, and mergers and acquisitions. Through its affiliate JetWorks Leasing, LLC, the Company also provides third party portfolio asset management and advisory services including aircraft remarketing and freighter conversions. (www.skyworkscapital.com)

Air China Limited is the national flag carrier of China and a leading provider of air passenger, air cargo and airline-related services in China. Its operational head office is in Beijing. It has an extensive route network serving major Chinese cities and international destinations, with dominant market share measured by total traffic volume at the Beijing Capital International Airport. It also provides airline-related services, including aircraft maintenance, ground services and in-flight catering services in Beijing, Chengdu, Hong Kong and other locations through its own business units and joint ventures. In the year ended 31st December 2006, it operated a fleet of 207 aircraft on 196 domestic routes, 81 international routes and 8 regional routes. (www.airchina.com.cn)

Swire Pacific Ltd. is one of Hong Kong's leading listed companies, with diversified interests in five operating divisions: Property, Aviation, Beverages, Marine Services and Trading & Industrial. The company's operations are predominantly based in the Greater China region, where the Swire group has been established for over 130 years. (www.swirepacific.com)