One Chinese hostage held by Islamic militants in South Waziristan has been killed and one freed in a dramatic rescue mission by Pakistani forces.
The survivor was handed over to Chinese diplomats
All five kidnappers were killed, military spokesman Maj-Gen Shaukat Sultan said.
A Pakistani guard and a soldier who were also taken captive had been released earlier.
Kidnap leader, Abdullah Mehsud, who was at a separate location, had demanded safe passage for his men.
Gen Sultan told AFP agency: "One is dead. Unfortunately he has succumbed to his injuries. One is absolutely safe."
China's government has expressed "deep sorrow" over the death and condemned the kidnappings as a terrorist act.
The survivor, Wang Ende, was handed over to Chinese diplomats.
President Pervez Musharraf sent a message to Chinese President Hu Jintao conveying his "sense of shock, indignation and heartfelt sorrow at the most horrifying episode of hostage taking".
He said the "masterminds behind this terrorist action will be pursued relentlessly and meted out the most severe punishment".
Information Minister Sheikh Rashid Ahmed said security forces began the rescue after hearing shots from inside, raising fears for the hostages' safety.
Interior Minister Aftab Ahmed Khan Sherpao said Wang Peng had been killed and his body was being taken to Islamabad. Mr Ahmed said the kidnappers shot him.
Mehsud had earlier insisted his men must have safe passage in return for the release of Wang Peng and Wang Ende from the surrounded mud compound near Chagmalai.
A tribal delegation sent by the Mehsud tribe had earlier failed to secure any releases.
Mehsud was freed in March after 25 months in US custody in Guantanamo Bay in Cuba. There is no word on his whereabouts now.
Pakistani officials said he was also demanding an end to military operations against al-Qaeda fighters and tribesmen supporting them in the Waziristan region.
Ali Ahmad Mehsud, a tribal escort who was taken hostage but freed along with three other tribesmen, said the kidnappers had been armed with five Kalashnikovs, a rocket launcher and eight hand-grenades.
He said the hostages had been handcuffed and their legs chained. They were also reported to have had explosives strapped to them.
Wang Ende and Wang Peng were working on Pakistan's Gomal Zam Dam project for a Chinese state-run company when they were seized in the Chagmalai area.
Pakistan began large-scale military operations against alleged al-Qaeda fighters in Waziristan in March.
The army says it has killed at least 150 militants since then. More than 100 troops have been killed.