China's Largest Airline Eyeing Dedicated 747 Cargo Service to Australia; China Southern Sees Strong Growth, Opportunity ``Down Under''.

Business Editors

SYDNEY--(BUSINESS WIRE)--Jan. 30, 2003

China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People's Republic of China, is considering introducing dedicated freighter services between Australia and Guangzhou, following strong growth in cargo uplift in 2002.

China Southern Airlines tabulated a 50 per cent increase in export cargo from Australia to China during 2002, utilizing "belly" freight space on four weekly Boeing 777 flights between Sydney/Melbourne and Guangzhou and is confident that it can increase its share of freight business between the countries.

"We have recently introduced Boeing 747-400 dedicated freighters into our fleet to accommodate growing cargo requirements between the USA/Europe and China," said Ms. Annie Ye, General Manager Australia, China Southern Airlines.

She added that, "with strong growth in freight uplift from Australia, we are now assessing opportunities to expand this side of our business, including the possibility of a dedicated Boeing 747 cargo operation between Australia and Guangzhou."

Ms. Ye said China Southern was currently carrying large consignments of lobsters from Australia to Guangzhou, as well as regular shipments of live goats for breeding in China.

Recently, the airline also carried a major shipment of Australian indigenous art to China on behalf of the National Museum of Australia for the unique "Past and Present" exhibition in Guangzhou, to help mark the 30th anniversary of diplomatic relations between the two countries.

"With shipments ranging from seafood and live breeding stock to unique and valuable works of art, we are developing a reputation not just as a freight carrier but as a specialist in the movement of perishable or fragile consignments," said Ms. Ye.

She added that, "part of our cargo success from Australia has been driven by China's entry last year into the World Trade Organization, and the increased international commerce which has begun to grow from that. But we are equally confident that our growth in this market has been due to increased market profile of China Southern Airlines, and our use of the spacious new generation Boeing 777 IGW."

China Southern Airlines operates four flights per week from Australia to China -- three Melbourne-Sydney-Guangzhou services and one Sydney-Guangzhou flight.

All depart Sydney mid morning, enabling passengers and export freight to connect from elsewhere in Australia or in New Zealand.

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 and 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: A color .jpeg photo of Carol Cooper, National Museum of Australia and Frank Gyzemyter, China Southern Airlines with part of the museum's recent shipment of Australian indigenous art to China is available upon request.