ARCH Arc Capital

RNS Number:4488K
ARC Capital Holdings Limited
21 December 2007

                                                                21 December 2007



                          ARC CAPITAL HOLDINGS LIMITED


                      Investment in Chinese Airport Group


Further to its announcement of 13 September 2007, ARC Capital Holdings Limited
("ARCH") (AIM: ARCH) and Pacific Alliance Asia Opportunity Fund Limited ("PAX")
(AIM: PAX) are pleased to announce the initial funding of their co-led
acquisition of a 49% equity stake in HNA Airport Holding (Group) Company Limited
("HNA Airport"), the domestic airport affiliate of Hainan Airlines (600221 CH)
and Hainan Meilan Airport Group (0357 HK).


In accordance with the approvals received from the PRC's Ministry of Commerce
(MOC) and the State Administration of Foreign Exchange (SAFE), an initial US$
150 million has been funded, of which ARCH provided US$ 70 million in cash.


HNA Airport was established in 2003 to capture the growth opportunities in
domestic air traffic and has emerged as one of China's major airport operators.
Its aeronautical business includes the provision of airfield services, terminal
facilities, ground handling services, and passenger and cargo handling services.
  Its non-aeronautical businesses include leasing of commercial and retail
spaces, airport-related business franchising, advertising, car parking, tourism
services and sales of duty-free and consumer goods.


According to HNA Airport's 2006 financials, the company recorded net profits of
RMB 35 million (US$ 4.75 million) on revenues of RMB 53 million (US$ 7.20
million).  HNA Airport is using part of the proceeds from ARCH's investment to
acquire control of Sanya Phoenix International Airport Co., Ltd. ("Phoenix"),
the manager of Sanya Phoenix International Airport in China's Hainan province.
According to Phoenix's 2006 financials, the company recorded net profits of RMB
69 million (US$ 9.32 million) on revenues of RMB 237 million (US$ 32.25
million).


HNA Airport is an experienced operator that has been able to acquire airports on
favorable terms from local governments which are seeking to increase local
tourism and aviation business.


For more information please contact:
NOMINATED ADVISER:                                        BROKER:



Philip Secrett/Cha Patel                                  Hiroshi Funaki

Grant Thornton Corporate Finance                          LCF Edmond de Rothschild Securities

Tel: +44 207 383 5100                                     Tel: +44 20 7845 5960

Philip.J.Secrett@gtuk.com/Cha.Patel@gtuk.com              Fax: +44 20 7845 5961

                                                          h.funaki@lcfr.co.uk
MEDIA RELATIONS:                                          LEGAL COUNSEL:



Sophie Hoggarth                                           Jon Lewis

Pacific Alliance Group                                    Pacific Alliance Group

Tel: +86 21 61135818                                      Tel: +852 29180088

shoggarth@pacific-alliance.com                            Fax: +852 29180881

                                                          jlewis@pacific-alliance.com

Simon Moyse

Brian Cattelt

Finsbury

Tel: +44 20 7251 3801

Simon.Moyse@finsbury.com

Brian.Cattell@finsbury.com





About ARC Capital Holdings Limited

ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a closed-end investment
company with net assets of US$ 520 million at 30 November 2007.  ARCH was
admitted to trading on the AIM Market of the London Stock Exchange in June 2006.
ARCH makes and holds investments in the retail, consumer goods and consumer
services sectors, principally in China but also in neighboring Asian countries.
Target investments include regional hypermarkets and supermarkets, dominant
consumer brands, specialty retail chains, retail property assets and retail and
consumer service providers.

For more information, see www.arccapitalholdings.com


About Pacific Alliance Asia Opportunity Fund Limited

Pacific Alliance Asia Opportunity Fund Limited ("PAX") (AIM: PAX) is a
closed-end investment company with net assets of US$400 million at 30 November
2007.  PAX was admitted to trading on the AIM Market of the London Stock
Exchange in September 2006. PAX seeks value, arbitrage and special situations
investments in Greater China and emerging Asia. Target investments include PRC
state-owned asset sales, PRC legal person shares, real estate, distressed
assets, private equity secondaries, activist investments and other opportunities
offering the possibility of unlocking the underlying value of a company or
asset.

For more information, see www.paxfund.net





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