China Southern Continues Modernizing Fleet With Major Retrofit; Unveils New First Class Cabin For Long-Haul Boeing 777 Aircraft.

ZHUHAI, China -- China Southern Airlines (NYSE:ZNH) (HKSE:1055) (SHA:600029) -- www.cs-air.com/en -- the largest airline in The People's Republic of China is pleased to announce its first major remodel of its long-haul Boeing 777 aircraft.

China Southern Airlines made this announcement at this week's Airshow China in Zhuhai.

"China Southern's Boeing 777 fleet is going into major refurbishment to meet the demand of the growing corporate business marketplace. This upgrade investment is key for China's largest airline to retain its fighting edge over its competitors by offering not only superior customer service but all of the in-cabin amenities one would expect from the nation's best airline," said Mr. Li Kun, Vice President, China Southern Airlines. China Southern Airlines was named the Best Airline in China by TTG Asia Magazine at its 2004 Annual Awards, held last week in Bangkok.

Mr. Li said the upgraded aircraft, "include five 777 that serve primarily on long-haul International routes such as Los Angeles, Sydney and Amsterdam."

The all-new First Class cabin of two 777 aircraft have already been refitted at the new Baiyun International Airport in Guangzhou by GAMECO (Guangzhou Aircraft Maintenance Engineering Company) and Boeing Commercial Aviation Services with the remaining three still planned for completion later this year.

In each retrofit, the number of seats in the First Class cabin have increased from 18 to 24 (after removing some Business Class seats) with seat recline expanding from 60 inches (152cm) to 70 inches (178cm) for a more comfortable journey for long distance travellers.

Mr. Li added that China Southern's VIP Sky Pearl Club frequent flyers have their meal orders on file. "Silky soft slippers are provided for all flights longer than two hours with all-new, complementary amenity kits for all International flights. More than six different types of Chinese and International magazines and newspapers ... and two local Guangzhou newspapers are all part of the all-new positive attitude of warm China Southern friendliness to all of our passengers," said Mr. Li.

"Our new First Class product features all the deluxe amenities you would expect from China's best airline ... including individual multi-channel personal video monitors and satellite telephones. We are pleased to assist you in anyway possible to maximize your personal space and enjoyment aboard our Boeing 777. Individual crystal video monitors featuring the AIRSHOW navigation channel (with real-time global satellite positioning) and 11 entertainment channels featuring the latest Hollywood, Chinese and Asian feature films, European movies and five different television channels including BBC-TV, V-TV and Discovery TV," explained Mr. Li. China Southern Airlines is also pleased to offer eight unique audio music channels including Chinese Opera, Kids Corner, Mandarin Pop and Light Music.

According to GAMECO's technicians, the alteration of this 777 model is the first of it kind in China. After the first two aircraft were refitted, representatives from Boeing made a careful inspection on the alterations, read through all technical documents that GAMECO had submitted and confirmed that GAMECO successfully completed the cabin layout alteration in the 777 aircraft. Relative documents were then issued by Boeing and finally approved by the FAA. CAAC airworthiness assessment office also recognized and improved thee inspection of all modifications.

The largest airline in The People's Republic of China for the past 25 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, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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

Note: A high 11 Meg, high res picture of China Southern's new First Class seat is available upon request at [e-mail].