10:02     SWIRE PACIFIC<00019>&<00087>&CATHAY PAC AIR<00293>-J.Ann.(2)        

    Definitions                                                               
                                                                              
    "Air China"                                                               
    Air China Limited, a company incorporated in the People's Republic of     
    China, the principal activity of which is the operation of scheduled      
    airline services                                                          
                                                                              
    "Cathay Pacific"                                                          
    Cathay Pacific Airways Limited, a company incorporated in Hong Kong, the  
    principal activity of which is the operation of scheduled airline services
                                                                              
    "Dragonair"                                                               
    Hong Kong Dragon Airlines Limited, a company incorporated in Hong Kong,   
    the principal activity of which is the operation of scheduled airline     
    services                                                                  
                                                                              
    "Hong Kong Stock Exchange"                                                
    The Stock Exchange of Hong Kong Limited                                   
                                                                              
    "MOU"                                                                     
    A non-binding Memorandum of Understanding between Cathay Pacific and Air  
    China dated 20 October, 2004                                              
                                                                              
    "Swire Pacific"                                                           
    Swire Pacific Limited, a company incorporated in Hong Kong, the principal 
    activity of which is investment holding                                   
                                                                              
                                                                              
    By Order of the Board                                                     
    Swire Pacific Limited                                                     
    Margaret Yu                                                               
    Company Secretary                                                         
    Hong Kong, 16 March 2005                                                  
                                                                              
    By Order of the Board                                                     
    Cathay Pacific Airways Limited                                            
    Margaret Yu                                                               
    Company Secretary                                                         
    Hong Kong, 16 March 2005