HAECO / TAECO Acquires 49% Shares of SR Shanghai

Hong Kong Aircraft Engineering Company Limited ("HAECO") and Taikoo (Xiamen) Aircraft Engineering Company Limited ("TAECO") - a subsidiary of HAECO, announced today that the two companies have acquired 49% shareholding that SR Technics holds in Shanghai SR Aircraft Technics Company ("SR Shanghai").

The company has been renamed Shanghai Taikoo Aircraft Engineering Services Company Limited ("STA") to take up the line maintenance services at Shanghai Pudong International Airport. TAECO and STA will work together to provide line maintenance services for customers. There are three shareholders of the company, HAECO, TAECO and Shanghai Foreign Aviation Service Corporation ("FASCO"). TAECO and STA now serve 39 airline customers at Shanghai Pudong International Airport.

Mr. Augustus Tang, HAECO's CEO, said: "We have acquired shareholding of SR Shanghai with the aim to expand HAECO Group's line maintenance service network in Mainland China, strengthening competitiveness of the Group."

Mr. Pan Zong Jing, FASCO's General Manager, said: "We are pleased to partner with HAECO and further develop the line maintenance service in Shanghai where we see a great deal of potential."

About Hong Kong Aircraft Engineering Company Limited ("HAECO")
HAECO is one of the world's leading aeronautical engineering groups providing a comprehensive range of services encompassing Airframe Maintenance, Cabin Reconfiguration / Integration Services, Cabin Completion Centre / Design Engineering, Freighter Conversion, Parts Manufacturing, Line Maintenance, Fleet Technical Management, Inventory Technical Management, Component Services, Engine Overhaul and Technical Training. The HAECO Group consists of 15 subsidiaries and affiliates, employing over 13,000 staff in Hong Kong, Mainland China, Singapore and Bahrain. HAECO is publicly listed on the Hong Kong Stock Exchange (Stock Code: 00044). HAECO's website: www.haeco.com.

About Shanghai Foreign Aviation Service Corporation ("FASCO")
Founded in 1984, Shanghai Foreign Aviation Service Corporation (FASCO) is an aviation service enterprise subordinate to the East China Regional Administration of Civil Aviation Administration of China (CAAC). It offers a wide range of products including aviation-related human resource management, technical business consultancy, freight-forwarding, ground-handling, travel management and hotel service. FASCO's website: www.fasco.cn.