DHL To Open New Hub in Hong Kong.

HONG KONG--(BUSINESS WIRE)--Dec. 6, 1999--

DHL International Ltd. Monday announced the establishment of a Central Asia hub in Hong Kong and a partnership with Cathay Pacific Airways to provide air transportation throughout the region.

The new hub will serve as the focal point of DHL's Asian air network, and, combined with DHL's Southeast Asia hub in Singapore, will offer customers fast and secure intra-Asian express services.

DHL's Central Asia hub will operate from the Express Cargo Terminal at Hong Kong International Airport beginning in March of 2000. Cathay Pacific will provide 32 overnight cargo and passenger flights a week between Hong Kong and Osaka, Seoul, Taipei and Singapore. DHL customers in Asia, particularly those in North and Central Asia, will enjoy an average of two hours' improvement in pick-up and delivery times.

"The establishment of this hub and the alliance with Cathay Pacific is in line with our long-term strategies for the Asia-Pacific region," said Charles Longley, chief executive officer for the Asia-Pacific/Middle East region of DHL International Ltd. "We aim to provide our customers with the best possible services by creating multiple hubs across the region."

"We are delighted to be able to offer overnight cargo services in partnership with such a highly regarded air express company as DHL," said Cathay Pacific's Director and Chief Operating Officer Philip Chen. "The new overnight service will enable us to further utilize the capacity of the Hong Kong International Airport and to further strengthen the position of Hong Kong as Asia's leading cargo hub."

The new hub is expected to create 400 direct jobs, and many more indirect jobs in Hong Kong will be created over the next three years.

Cathay Pacific was ranked as the 11th largest freight-carrying airline in the world in 1998, and it has played a major role in making Hong Kong Asia's leading air cargo hub. The airline operates a fleet of 62 wide-bodied aircraft, including six Boeing 747 freighters. Last month, Cathay Pacific ordered two new Boeing 747-400 freighters for delivery over the next two years. The airline carries about 60% of its cargo in the bellies of its passenger aircraft and the remainder in its freighters.

The Cathay Pacific Internet site can be found at http://www.cathaypacific.com. To receive Cathay Pacific media information by e-mail, register at Inside CX.

In Asia-Pacific/Middle East, DHL serves 51 countries and territories, operates about 900 stations, employs more than 17,500 personnel and owns more than 4,000 transport vehicles.

DHL Worldwide Express, named the "World's Most Global Company" by Global Finance magazine, is the world's largest and most experienced international air express network, linking more than 635,000 destinations in more than 230 countries. DHL Worldwide Express is composed of DHL Airways Inc., which serves all locations in the U.S. and its territories; and DHL International Ltd. and its agents and affiliated companies, which serve all locations outside the U.S. and its territories. Visit the DHL Web site at http://www.dhl.com.