China Southern Airlines & TravelSky Partner Up With New FFP Product; Immediate Mileage Information Available at 6,000 Travel Agents in China.

Business/Travel Editors

GUANGZHOU, China--(BUSINESS WIRE)--April 23, 2002

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in the People's Republic of China for the past 23 years, has partnered with Beijing-based, TravelSky Technology Limited (HKSE: 0696) (www.travelsky.net), to create an all new FFP "Information Portal."

Available now from any of the 6,000 travel agents in China currently using the TravelSky ETD system, customers can now receive direct information on their Sky Pearl Club FFP mileage information. TravelSky is the largest distributor of airline tickets in China and has representative travel agents in 300 cities in China and in 70 major worldwide locations and on the Internet at www.travelsky.com.

This is not only the first but is currently the only FFP mileage information link between a major airline and a leading travel service provider in the People's Republic of China. China Southern Airlines is the first airline to sell an Internet E-ticket.

"Clearly we recognize that here in China, just like in the USA, not everyone has access to the Internet. Basically we have brought the `mileage bank' information of the China Southern Airlines' Sky Pearl Club -- available on the Net -- to the local, home-town travel agent," said Mr. Yu Xiao Chun, Deputy Manager, Marketing Department, TravelSky.

Demonstrated at a press conference here in Guangzhou, members of the China Southern Sky Pearl Club can present their membership card to any travel agent and receive the following information:

-- Current FFP mileage

-- The last 10 flights taken

-- Additional bonus mileage accumulated

Besides proving current information to the FFP customer, the next transitional step "will be to have the travel agent `auto generate' a free airline ticket -- based upon available miles in the FFP customer's account -- and allow that customer to fly same day. Why should they wait six weeks or more to fly?" remarked Mr. Li Kun, vice president, China Southern Airlines.

Mr. Li added that, "the beauty of this system is the depth and scope of TravelSky's presence in the China travel marketplace. No one has the market penetration that TravelSky does with the travel agent market."

"As long as a travel agent as access to a CRS terminal, they can provide this important information to the China Southern customer. No longer does a customer have to wait for the airline to mail them their flight information, which may or may not be the most current flight information for their account. People want information and TravelSky is in the business of providing that, as well as a host of travel ticketing services," added Mr. Yu.

TravelSky Technology Limited (www.travelsky.net), is the dominant provider of information technology solutions for China's air travel and tourism industries. TravelSky develops leading edge applications and services that address the needs of a wide range of industry participants -- ranging from airlines, airports and non-air travel suppliers to travel agencies, corporate travel consumers, air travel consumers and cargo shippers -- to conduct electronic transactions and manage travel-related information.

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, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.

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