Cathay Pacific and Panasonic Avionics Corporation Plan to Keep Passengers Connected As They Fly

LAKE FOREST, California, July 7, 2010 - Cathay Pacific Airways and Panasonic Avionics Corporation today announced
the signing of a Memorandum of Understanding (MOU) for the provision of full
broadband connectivity on all Cathay Pacific and Dragonair passenger
aircraft.

While final terms are still being negotiated, the MOU allows the parties
to immediately begin developing the plan to provide connectivity for
passengers together with promotional, sponsorship and e-commerce
opportunities for Cathay Pacific partner brands.

Cathay Pacific is the first airline in Asia to announce its intention to
deploy Panasonic Avionics' Global Communications Suite broadband connectivity
solution. It is also the first airline globally to announce an intention to
provide the solution across its full fleet. Services will launch from early
2012, subject to regulatory approval.

The Panasonic Avionics connectivity solution for Cathay Pacific will
comprise the eXConnect broadband service, eXPhone GSM phone service, and a
CX-branded free-of-charge entertainment portal - accessible through all
passenger devices and seatback screens - that will include a range of content
updated during the flight, access to airline and partner sites, e-commerce,
airline-specific advertising, and live television with a unique pay-per-view
capability for special events.

    - eXConnect provides two-way broadband connectivity supporting
      a wide range of passenger and crew applications, including Internet
      access, voice, data, and the ability to monitor and transmit airline
      operational data in real time at speeds of up to 50 Mbps to the
      aircraft.
    - eXPhone, offered in collaboration with AeroMobile's GSM mobile
      phone technology, allows passengers to use their mobile phones, smart
      phones and BlackBerry(R) devices onboard to make voice calls, send SMS
      text messages or utilise data services and stream content wirelessly to
      their iPod(R), iPhone(R) and iPad(R). eXPhone gives the airline
      flexibility and full control over the services offered including
      restricting certain services when appropriate.

Alex McGowan, Head of Product for Cathay Pacific, said: "Connectivity
will form an important part of our overall customer proposition. Having that
connectivity integrated closely with our video on demand entertainment system
is especially valuable as it means that all passengers will be able to use
the service. We believe that being connected is now an expected part of
everyday life - not just for business purposes but also to stay in touch with
family and friends. This system will allow passengers to be as 'in touch' as
they wish to be while enjoying the great Cathay Pacific and Dragonair
service."

Charles Ogilvie, Executive Director of China for Panasonic Avionics
Corporation, said: "We are very proud and thrilled to be working with Cathay
Pacific. We are committed to serving the needs of the ever-growing markets in
China and Asia. With Panasonic Avionics' Global Communications Services,
Cathay Pacific will be the first airline in Asia to offer passengers the most
innovative inflight entertainment and communication options onboard
commercial aircraft."

Cathay Pacific Airways and Panasonic Avionics Corporation have enjoyed a
close relationship since 1994.

About Cathay Pacific Airways Ltd

Cathay Pacific Airways is a Hong Kong-based airline offering scheduled
passenger and cargo services to some 120 destinations in Asia, North America,
Australia, Europe and Africa, using a fleet of 103 wide-body passenger
aircraft and 25 freighters. The company is a member of the Swire group and is
a public company listed on the Hong Kong Stock Exchange. Dragonair is a
wholly owned subsidiary and Cathay Pacific also has a 60% stake in AHK Air
Hong Kong Ltd, an all-cargo carrier operating regional express freight
services. Cathay Pacific has made substantial investments to develop Hong
Kong as one of the world's leading global transportation hubs. The airline is
a founding member of the oneworld global alliance.

About Panasonic Avionics Corporation

Panasonic Avionics Corporation is the world's leading supplier of
inflight entertainment and communication systems. The company's best-in-class
solutions, supported by professional maintenance services, fully integrate
with the cabin enabling airlines to deliver the ultimate travel experiences
with a rich variety of entertainment choices, resulting in improved quality
communication systems and solutions, and lower overall costs.

Established in 1979, Panasonic Avionics Corporation, a US corporation, is
a subsidiary of Panasonic Corporation of North America, the principal North
American subsidiary of Panasonic Corporation (NYSE: PC). Headquartered in
Lake Forest, California with over 2,600 employees and operations in 50
locations worldwide, it serves over 200 customers worldwide and provides IFEC
systems on over 3,700 aircraft. For additional information, please visit
www.panasonic.aero.

Theresa Yeoh of Panasonic Avionics Corporation, +1-949-632-0149