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30 Sep 2003
Swire Pacific to Close Car Distribution Business in Hong Kong and Macau

Swire Pacific Limited announced today that it will discontinue its distribution business for Volvo cars (represented by Taikoo Motors Ltd.) and Hyundai cars (represented by Taikoo Asian Motors Ltd.) in Hong Kong and Macau.

About 110 affected staff from Taikoo Motors Ltd. and Taikoo Asian Motors Ltd. will receive redundancy payments in accordance with statutory requirements and also exgratia payments. It is expected that most of the affected staff will receive offers of employment from the newly appointed Volvo distributor, Wearnes Motors (H.K.) Ltd.

Volvo Car Corporation will transfer the distributorship from Taikoo Motors Ltd. to Wearnes Motors (H.K.) Ltd. effective 1st October, 2003.

Agreements have also been reached to transfer existing stock of Volvo cars and spare parts, as well as the lease of the Volvo Wanchai showroom to Wearnes Motors (H.K.) Ltd. Terms of the deal have not been disclosed but these transactions do not represent any significant impact on Swire Pacific's financial position.

The Hyundai distributorship under Taikoo Asian Motors Ltd. will cease at the end of 2003, at which time a new distributor will take over the business.

Swire Pacific says it will render all possible assistance to ensure a smooth handover of the distributorships.