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PRESS RELEASE

Hongkong United Dockyards Limited
HK$1,000,000,000 7-Year Transferable Term Loan Facility
Severally guaranteed by Hutchison Whampoa Limited and Swire Pacific Limited

17 July 2000

Hongkong United Dockyards Limited ("HUD") is pleased to announce the signing of a HK$1,000,000,000 Term Loan Facility in Hong Kong today. The Facility is severally guaranteed by the two shareholders of HUD, namely Hutchison Whampoa Limited and Swire Pacific Limited. With a tenor of 7 years, the Facility will be used to finance the purchase of sister company The Hongkong Salvage and Towage Company Limited's shipping business and the general corporate restructuring of the HUD group. The Facility was arranged and fully underwritten by Commerz (East Asia) Limited.

HUD was formed by the merger in 1972 of Swire's Taikoo Dockyard with the Hongkong & Whampoa Dockyard and is effectively a 50:50 operating joint-venture of Hutchison Whampoa Limited and Swire Pacific Limited. The company is jointly run by the two shareholders. A brief description on the business operation of HUD is herewith attached.

HUD has been able to break new ground with this financing arrangement which represents the longest-dated plain vanilla corporate transaction in Hong Kong since the Asian Crisis. In fact, the Facility was very well received in the market and was largely oversubscribed with a total of 9 banks concluded for the lending group. Despite the success for this arrangement, HUD as well as the shareholders have decided not to increase the size of the Facility, sharing the view that the financing amount is adequate for the present requirements of HUD.

Please find below a list of the participating banks for reference:

Arranger & Bookrunner

Commerz (East Asia) Limited

Co-Arrangers

Bank of China, Hong Kong Branch
Nanyang Commercial Bank, Limited
The Sanwa Bank, Limited, Hong Kong Branch
The Bank of East Asia, Limited
Den Danske Bank Aktieselskab
The Industrial and Commercial Bank of China, Hong Kong Branch

Lead Managers

Shanghai Commercial Bank Ltd.
Banca Commerciale Italiana S.P.A., Hong Kong Branch

For further information, please contact Ms Mimi Cheng of Commerz (East Asia) Limited at
Tel : 2842 9643
E-mail : mimi.cheng@commerzbank.com.hk

APPENDIX

HUD is the major provider of ship repair services in Hong Kong. Located on Tsing Yi Island, it's 1995-built floating dock is one of Asia's most modern facilities, with the largest steel fabrication and heavy engineering and electrical workshops in Hong Kong. HUD's floating dock "United", with its 40,000 tonnes lifting capacity and post-panamax beam, enables the company to undertake dry-docking, maintenance, repair and survey on all types and virtually all sizes of vessels with a particular emphasis on container vessels calling at Hong Kong. Complementing its range of marine engineering skills, HUD's General Engineering Services division offers a variety of land-based mechanical and electrical engineering services and steelwork, ranging from the installation of equipment for factories, chemical works, power stations and railways, to the fabrication and erection of steel structures. The company is the leading provider of electric motor overhaul services in Hong Kong and HUD General Engineering Services is an approved contractor to the Hong Kong Government and a Registered Electrical Contractor, with a Quality System certified to ISO9002. HUD's recent diversification effort includes the establishment of HUD Automotive Services, a division engaged in vehicle refinishing, bodywork repairs and assembly, and mechanical services for franchised bus operators and commercial fleet owners. Its facilities include a fully enclosed, environmentally friendly, temperature controlled paint booth—the largest of its type on a common-user basis, a body workshop, and a mechanical workshop. The business unit has been appointed the authorised workshop by Volvo Bus & Truck to undertake after-sale services for commercial vehicles, and will pursue third party fleet maintenance business opportunities.