CAAC Cargo Conference Credits Consumer Consignment Confidence; China Southern Cargo Pacing China's Worldwide Freight Boom.

Business Editors/Travel Writers

GUANGZHOU, China--(BUSINESS WIRE)--July 24, 2003

China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People's Republic of China, is pleased to announce that it has passed a "white-glove" inspection of its Cargo Department by the Civil Aviation Administration of China (CAAC), www.caac.cn.net.

Chaired by CAAC Minister Mr. Yang Yuanyuan, the special conference gave a "top to bottom -- inside and out" review of China Southern Airlines' cargo fleet operations.

According to Minister Yang, "The CAAC is moving to establish a fairer and more open policy system to speed up China's air cargo business."

Minister Yang's team from the CAAC was debriefed by Mr. Wang Changshun, Vice President of China Southern Air Holding Company and President of China Southern Airlines, on varied issues from the Feasibility and Implementation Guidelines of Air Cargo Deregulation Policy.

During his white-glove inspection at Baiyun International Airport -- the worldwide headquarters for China's largest airline -- Minister Yang was quick to acknowledge the achievements of China Southern Boeing 747-400 cargo fleet in the recent years and its position to take the "next step" as one of the leading forces in the growth of cargo in China.

Also present at the conference were China Southern Air Holding Company President Mr. Yan Zhiqing and Party Secretary Mr. Liu Mingqi; China Southern Airlines' senior management, including Mr. Li Kun; Mr. Si Xianmin; Mr. Yuan Xin'an; Mr. Yang Guanghua; Mr. Zhou Yongjin; Chief Accountant Mr. Xu Jiebo and the senior managers from China Southern Airlines' Cargo Department.

During the conference, China Southern's Yan Zhiqing said, "The world is becoming smaller. As national economies continue to cross boarders and embrace globalization, state-of-the-art logistics pace the future development of air cargo. China Southern should speed up its network and logistics hub construction; participate in air-ground-sea through transport; build a brand new logistics concept for the future while introducing advanced international management experience ... and without question, domestic cargo should be enhanced as the service standard of our airline."

The CAAC's Yang added that China Southern Airlines must, "hire and retain the highest quality personnel; improve its management standards and set up an incentive system for the China Southern Airlines Cargo sales & marketing team to motivate them to sell."

He explained that, "China Southern Airlines cargo has developed quickly in a short time frame and leads China's aviation industry in the use of the Internet for attracting new clients and retaining cargo business."

With China's entry into the World Trade Organization, China's external business environment has already changed and markets are opening wide to products made in China. "Each of the 32,000 employees of China Southern Airlines should re-dedicate themselves to the vision that we all share today ... for the ongoing development of the cargo industry in China," concluded Minister Yang.

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.