All New Proprietary Cargo Sales System Unveiled by China's Largest Airline; Old System Jettisoned -- User Friendly Program Now Available on the Net.

Business Editors/Travel Writers

GUANGZHOU, China--(BUSINESS WIRE)--Dec. 5, 2002

China Southern Airlines (NYSE:ZNH)(HKSE:1055), the largest airline in The People's Republic of China, is pleased to announce its all new, proprietary cargo sales system, available now at www.cs-air.com (Chinese) and www.cs-air.com/en (English).

With more than two years of programming and several Million RMB invested by China Southern Airlines to purchase computer servers and other necessary hardware, the new Cargo Sales System has been thoroughly beta tested and was placed on the Net this week by China Southern Airlines' Computer Department. Senior managers of China Southern Airlines recognized the necessity in the practical application of IT and never hesitated to invest the necessary labor and capital required to successfully utilize this technology.

During the past decade, China Southern Airlines had either purchased or rented large computer systems for various vertical applications such as airline reservations.

By the close of 1995, China Southern used the CAAC's FAST4 system but ultimately found the application of this system wanting. After detailed study, China Southern Airlines' management seized the opportunity to develop a unique cargo system all its own.

The CSN Cargo Sales System is a complete modernization of its air cargo transportation services. Its main goals are to streamline the information flow between CSN air cargo operations at its Guangzhou headquarters as well as improving sales and transportation capabilities ... and are fully expandable.

The CSN Cargo Sales System is -- in "layman's terms" -- a large central computer center which offers the latest software applications. It is designed to imitate practical cargo operation including cargo sales and real-life, day-to-day operations. All correlative cargo departments of China Southern will be able to use it.

In addition, it is an open-ended system with several EDIs with other systems including the Internet.

The system scheme is designed for the entire airline and is compatible so it can be used by any CSN branch company. The system easily meshes China's current economic environment and China Southern's highly efficient cargo services and easily fits the airline's growing global cargo programs.

The system adopts friendly GUI rather than command line prompts which makes the system very easy to use. The system is offered in dual language versions (English and Chinese) and can be used in both the domestic and International marketplace. It adopts a three-layer structure -- the most advanced cargo system structure to support the system for flexibility and expandability. The system enables CSN to connect with all subsidiaries, agents and clients through the Internet.

The system is developed in individual modules and it is flexible so it may split it into parts for individual selling. Each of the modes has its own characteristics and is mutually complementary. China Southern Airlines plans to use each of the three modes together in future expansion in Europe and beyond.

The largest airline in The People's Republic of China for the past 23 years, China Southern Airlines (www.cs-air.com/en) connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan; as well as international service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Moscow, Osaka, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

Note: An exclusive PowerPoint presentation outlining China Southern's new Cargo Sales System is available upon request.