BTG Nikko International Hotel Management Co., Ltd. Formed to Provide Hotel Management Services in China

JAL Hotels and Beijing Capital Tourism are each leading companies in the tourism and hospitality industry in their headquarter countries, and have a 20-year business relationship with each other managing Jinglun Hotel, a Nikko Hotels International property located in the center of Beijing.

"Each company brings expertise and professionalism to this partnership," said Mr. Shosuke Machida, president of JAL Hotels Company, Ltd. "JAL Hotels operates hotels around the world and has established the strong Nikko Hotels International brand name as well as offers international hotel management and sales capabilities. Beijing Capital Tourism has built outstanding know-how in managing travel agencies and hotels and has a superb network throughout China. Both companies believe that establishing a joint corporation will create synergy and multiply our merits."

Mr. Yi Liu, president of Beijing Capital Tourism Co., Ltd., added, "We are very pleased to have the opportunity to work together with JAL Hotels Company to promote the Nikko brand. Our partnership will bring us and JAL Hotels Company to our common goal of contributing to the future development of the Chinese hotel industry and becoming one of the top hotel management companies in China."

The two companies announced that their new joint corporation, BTG Nikko International Hotel Management Co., Ltd. will first concentrate on 11 cities in China where Japan Airlines, JAL Hotels Company's parent company, has air routes, as its major market. The company will provide hotel management to Nikko Hotels as well as other local hotels with ranking above four stars. By mid-February, the company will set up a pre-opening office in preparation for an official office opening on April 1, 2004.

BTG Nikko International Hotel Management Co., Ltd. will manage three hotels in Beijing: Jinglun Hotel, Beijing New Century Hotel and Minzu Hotel Beijing. The company is also currently negotiating contracts with several hotels in other cities. Jinglun Hotel is expected to go through major renovations to upgrade the property to the five-star class, targeting the 2008 Beijing Olympics. The Beijing city government has declared the area as the Central Business District, and Jinglun Hotel will be a world-class flagship hotel for the company. Jinglun Hotel and Beijing New Century Hotel will be managed under the Nikko Hotels International brand name.

Nikko Hotels International is an international luxury hotel group operated by JAL Hotels Company Ltd., a subsidiary of Japan Airlines, headquartered in Tokyo, Japan. In addition to Nikko Hotels International, JAL Hotels also operates Hotel JAL City, a chain of 10 mid-priced hotels for business travelers in Japan, as well as independent hotel properties. JAL Hotels Company Ltd. has 54 hotels worldwide, in Europe, Americas and throughout Japan and the Asia/Pacific region. Through a unique global alliance with the Le Meridien hotel brand formed in 2000, Nikko Hotels' guests now have access to Le Meridien hotels worldwide, thus extending Nikko Hotels' marketing network to more than 170 hotels in over 63 countries and territories. The Nikko Hotels International partnership with Le Meridien covers all Le Meridien properties worldwide.