China Southern Airlines Passes Major Aircraft Engine Milestone; 1 Million Hours Of Safe Rolls-Royce Engine Operation.

Business Editors & Travel Writers

GUANGZHOU, China--(BUSINESS WIRE)--Oct. 25, 2001

China Southern Airlines (NYSE:ZNH) (HKSE:1055) www.cs-air.com/en, the largest airline in The People's Republic of China has reached a major milestone with 1 Million hours of safe flight operations using Rolls-Royce aircraft engines.

China Southern Airlines is the 7th airline in the world to achieve the 1 Million hour mark using the RB211-535 E4 engine.

"I would like to congratulate China Southern Airlines on achieving 1,000,000 hours of operation with your fleet of RB211-535 E4 engines," said John P. Cheffins, Chief Operating Officer and President of Rolls-Royce Company.

China Southern Airlines began using the Rolls Royce RB211-535 E4 engine in September 1987 and currently the carrier has 44 engines of this type, powering its 18 Boeing 757s.

Working to enhance the performance of all its aircraft engines, including the RB211-535 E4 type, China Southern Airlines' Maintenance & Engineering Department has been working closely with the Guangzhou Aircraft Maintenance & Engineering Company (GAMECO) and created the China Southern Airlines Engine Performance Control Group, supplied with professional technicians and Engine Performance Control Committee, consisting of senior engineering management.

Through its effective engine performance monitoring, China Southern Airlines has been able to root out potential engine problems and adopted measures to trouble-shoot any potential problems thus reducing engine in-flight shutdown rate.

Early in November 1997, the RB211-535 E4 engine won worldwide acclaim for China Southern Airlines, as the carrier using the Rolls-Royce engine with serial number 30806, became the first Boeing 757/RB211 - 535 E4 engine in the world with more than 10,000 operating cycles with a non-repair record.

According to Rolls Royce statistics ... in 1998, the in-flight shutdown rate of RB211-535 E4 engines used on China Southern Airlines' Boeing 757 fleet, was highly rated internationally as compared to fleets of other airlines with the same operational scale.

Rolls-Royce, www.rolls-royce.com, is a global company providing power on land, sea and air. The company has established leading positions in civil aerospace, defense, marine and energy markets. Its core gas turbine technology has created one of the broadest product ranges of aero engines in the world, with 55,000 engines in service in over 150 countries. Customers include more than 500 airlines, 2,400 corporate and utility operators and 160 armed forces, using both fixed and rotary wing aircraft.

The largest airline in The People's Republic of China for the past 21 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.