BTG Form Management Joint Venture

JAL Hotels Company, Ltd., operating company of Nikko Hotels International,
announced today in Tokyo that it will form a 50:50 joint venture
corporation with Beijing Capital Tourism Co., Ltd., a Chinese company, to
provide hotel management services. The joint corporation, BTG Nikko
International Hotel Management Co., Ltd. will be based in Beijing, 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.”

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.”

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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.
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