A hijacker strapped with dynamite attacked a group of 10 Australian tourists visiting the northwestern Chinese city of Xi'an yesterday morning.

He released nine of them, but subjected a 48-year-old Australian woman from the state of New South Wales and a local interpreter to a two-hour ordeal before a police sniper shot him dead.

It was a surprise attack in the Shaanxi Province city famed as the home of the Terracotta Warriors, said Janaline Oh, a spokeswoman for the Australian Embassy in Beijing.

"Chinese security authorities intervened and secured the release of the woman," Oh told Reuters. "The Australian government is pleased that the woman is now safe."

The man seized the bus near the city's central Bell and Drum Tower Square and then took the Australian woman and the translator hostage.

As thousands of people crowded around the square, authorities agreed to let the hijacker travel to the city's airport in another vehicle.

The second vehicle was stopped near a toll booth by police.

"After repeated unsuccessful entreaties by the police, they took the resolute step of opening fire," Xinhua news agency reported. "The hostages were safe and unscathed."

The man was identified as Xia Tao, a factory worker in Xi'an.

Police are still investigating the case and did not offer an explanation for the attack.

The Australians were all travel agents on an educational tour, according to media reports from their home country. The group flew to Shanghai overnight, where they were met by Australian diplomatic officials.

Last night, Australian Foreign Affairs Minister Stephen Smith said he was "pleased that the situation was resolved quickly and the hostages are now safe."

Smith said that the Australian Embassy in Beijing and the Consulate-General in Shanghai were providing ongoing assistance to the unnerved tourists.

(Shanghai Daily, March 6, 2008)