Hong Kong Aircraft Engineering : Appointment of Independent Financial Adviser

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This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of Hong Kong Aircraft Engineering Company Limited nor is it a solicitation of any vote or approval in any jurisdiction.

HONG KONG AIRCRAFT ENGINEERING COMPANY LIMITED 香港飛機工程有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00044)

Appointment of Independent Financial Adviser

The Board of Directors (the "Board") of Hong Kong Aircraft Engineering Company Limited (the "Company" or "HAECO") wishes to announce the appointment of Somerley Capital Limited as the independent financial adviser to the HAECO Independent Board Committee in accordance with the Takeovers Code.

Reference is made to the joint announcement dated 10th June 2018 issued by Swire Pacific Limited and the Company in relation to, amongst other things, the Proposal (the "Joint Announcement"). Unless otherwise defined in this announcement, terms defined in the Joint Announcement have the same meanings when used in this announcement.

The Board wishes to announce that it has appointed Somerley Capital Limited, a corporation licensed to carry out type 1 (dealing in securities) and type 6 (advising on corporate finance) regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as the independent financial adviser to advise the HAECO Independent Board Committee in connection with the Proposal, and such appointment has been approved by the HAECO Independent Board Committee pursuant to Rule 2.1 of the Takeovers Code.

The letter of advice from the HAECO Independent Financial Adviser and the recommendations of the HAECO Independent Board Committee will be included in the Scheme Document to be despatched to the HAECO Shareholders in due course.

WARNING: HAECO Shareholders and potential investors should be aware that the Proposal is subject to the Conditions being fulfilled or waived, as applicable, and therefore the Proposal may or may not be implemented. This announcement

is made in compliance with the Takeovers Code for the sole purpose of informing HAECO Shareholders of the fact that an independent financial adviser has been appointed to advise the HAECO Independent Board Committee. HAECO Shareholders and potential investors should therefore exercise caution when dealing in the securities of HAECO. Persons who are in doubt as to the action they should take should consult their stockbroker, bank manager, solicitor or other professional advisers.

As at the date of this announcement, the directors of the Company are:

Executive Directors: J.R. Slosar (Chairman), W.E.J. Barrington, C.P. Gibbs, R.J. Sharpe, A.K.W. Tang;

Non-Executive Director: G.T.F. Hughes, M.B. Swire; and

Independent Non-Executive Directors: B.Y.C. Cha, Y.K. Leung, J.L. Lewis and P.P.W. Tse.

The directors of HAECO jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement the omission of which would make any statements in this announcement misleading.

By Order of the Board

Hong Kong Aircraft Engineering Company Limited 香港飛機工程有限公司

David Fu

Company Secretary

Hong Kong, 29th June 2018