10:15     CNAC<01110> - Announcement & Resumption of Trading (8)              

    Hong Kong Agreement as of 26 April, 2004. The Board                       
    understands that it is the intention of the parties that                  
    once the relevant consents are obtained, the parties will                 
    seek to pursue the transaction again.                                     
                                                                              
    Information on LLSHK                                                      
                                                                              
    LLSHK is principally engaged in the provision of inflight                 
    catering services, laundry services and the operation of                  
    airport lounges and an airport restaurant.                                
                                                                              
    The asset of approximately 16% of the issued share capital                
    in LLSHK was initially acquired by CNACG in 1996 at a                     
    consideration of approximately HK$101.8 million.                          
                                                                              
    REASONS FOR THE ACQUISITIONS                                              
                                                                              
    The Directors believe that the Acquisitions are in line                   
    with the Group's long-term expansion strategy and will                    
    further enhance the Group's position as a major                           
    conglomerate in the Asia Pacific region for aviation and                  
    related businesses. The Acquisitions will diversify the                   
    Group's investment portfolio as well as to broaden its                    
    income base.                                                              
                                                                              
    With the future expansion of the Beijing Capital                          
    International Airport and the Chengdu Shuangliu                           
    International Airport, as well as the coming 2008 Beijing                 
    Olympic Games, the demand for aviation-catering service                   
    is expected to increase in the next few years. The                        
    Directors are optimistic about the growth potential of                    
    these acquired companies.                                                 
                                                                              
    The Group always maintains its prudent financial and risk                 
    management polices in pursuing its business development,                  
    and the Directors consider it is a good opportunity to                    
    utilize the Group's funds to acquire assets that offer                    
    long-term stable return and good growth potential.                        
                                                                              
    Following the Acquisitions, the Group will become one of                  
    the biggest aviation-catering groups within mainland                      
    China. The efficiency of the aviation-catering companies                  
    being acquired will also be improved by future                            
    cooperation and sharing of more effective management                      
    techniques.                                                               
                                                                              
    The Group, with its extensive experience in operating                     
    international flights and airport-related services for                    
    multi-national carriers, is well prepared for further                     
    expansion into major aviation hubs in mainland China and                  
    in the Asia Pacific region.                                               
                                                                              
    The Directors believe that the terms of the Acquisitions                  
    are fair and reasonable and in the interests of the Company               
    and the Shareholders as a whole.                                          
                                                                              
    The Company does not have any present intention to acquire                
    any further equity interests in any of BACL or SWACL.                     
                                                                              
    ONGOING CONNECTED TRANSACTIONS                                            
                                                                              
    Following completion of the Beijing Contract and the                      
    Chengdu Contract, certain transactions now being carried                  
    on by BACL and SWACL with connected persons (as defined                   
    in the Listing Rules) of the Company will constitute                      
    continuing connected transactions of the Group. The                       
    details of such transactions will be contained in the                     
    circular to the Shareholders.                                             
                                                                              
    Further announcement in respect of such transactions will                 
    be made separately. The Company will ensure compliance                    
    with the Listing Rules in respect of the continuing                       
    connected transactions.                                                   
                                                                              
    INFORMATION ON THE GROUP