FOR IMMEDIATE RELEASE

26 September 2002

Swire Properties Ltd., a wholly-owned subsidiary of Swire Pacific Limited, is pleased to confirm that today (Thursday, 26 September 2002) the Court of Appeal has granted Leave to Appeal to the Court of Final Appeal on a point of law in respect of the Taikoo Shing Arbitration Award. No further comment will be offered until this matter has been finally determined.

About the arbitration:

The Hong Kong SAR Government Lands Department's claim for payment of land premium and interest in relation to the Cityplaza Four, Cityplaza Three and Cityplaza One office towers, as well as the Horizon Gardens residential scheme at Taikoo Shing, was upheld in an arbitration award announced in January 2001. Whilst the arbitrator's decision that Swire Properties has to surrender 1,974,000 sq ft of its entitlement to build commercial gross floor area in Taikoo Shing is now accepted, the timing of the surrender and consequently the Government's entitlement to premium and interest is the subject of an appeals process for which the ultimate outcome has yet to be determined. The amount of HK$4,500 million which was accrued in the Swire Pacific group accounts as at 31 December 2000 remains our best estimate of the group's exposure.

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