China Southern Hosts Major SkyTeam Con-Fab; Alliance Industry Leaders Gather at Chinese Resort City.

SANYA, China -- China Southern Airlines, (NYSE:ZNH) (HKSE:1055) (SHA:600029) - www.cs-air.com/en - with the largest and most technically advanced aircraft fleet in The People's Republic of China, hosted a forum today in the resort city of Sanya with senior airline management of SkyTeam as it reviewed its future membership in the global alliance.

Industry aviation leaders gathered in Sanya under the theme, "Industry Cooperation ... A Win-Win Future." Present and addressing at the forum were Mr. Li Jian, Vice Minister, General Administration of Civil Aviation of China (CAAC); Mr. Liu Shao Yong, President of China Southern Air Holding Company & Chairman of China Southern Airlines; Mr. Chen GAO Shun, Deputy Secretary General, Hainan Provincial People's Government; Mr. GAO Boa Hong, Vice Mayor, Sanya People's Government; Mr. Jung He Lee, President & COO of Korean Air; Mr. Dominique Party, Senior Vice President of International Affairs and Alliances, Air France; Mr. Liu Zoning, President, Guangdong Airport Management Corporation and Mr. Wang Xian ping, Senior Advisor, China Southern Airlines.

SkyTeam is one of the three big global alliances, with current 10 member carriers in possession of 2,018 aircraft serving 14,615 daily flights to 728 destinations in 149 countries and regions. The SkyTeam alliance enjoys the best hubs and network, including Atlanta Airport - the world's largest airport where Delta Air Lines is based; Paris-Charles de Gaulle - the largest hub in Europe where Air France is headquartered; Inch eon Airport - the biggest Asian airport where Korean Air is based and Mexico City Airport - the largest airport in the Latin American region where Aeromexico is hubbed.

China Southern Airlines is the largest airline in The People's Republic of China in terms of fleet, routes and annual passenger traffic and is the first mainland Chinese airline to launch its own self-created computer reservation system; sell China's first airline e-ticket and offer customers self-service check-in. Currently, China Southern is expediting the building of Guangzhou and Beijing as dual airline hubs to serve the ever expanding Chinese domestic marketplace.

China Southern has relocated its fleet of Airbus A330 aircraft to Beijing to serve the most extensive flights in mainland China.

China Southern Airlines signed an initial agreement for future SkyTeam membership in late August 2004 and in June 2006; China Southern inked a GAAAA (Global Airline Alliance Adherence Agreement) with SkyTeam, striding forward a key step towards a global airline alliance membership.

China Southern Airlines is aiming at becoming an official member of SkyTeam by the close of year 2007.

The Sanya forum will provide China Southern with the opportunity to communicate with varied domestic and international airline industry leaders in its preparation for its official membership into the SkyTeam.

Since signing the GAAAA last year, China Southern Airlines has been ramping up to significantly improve its varied service facilities, standards and procedures to meet membership requirements. This includes upgrades to its IT systems including seat reservations; departure systems; Sky Pearl Club Frequent Flyer Service; e-ticketing; bill and settlement systems; revamping its sales & marketing and retraining its staff training under SkyTeam practices.

Mr. Yang Yuan Yuan, CAAC Minister, said, "Promoting the backbone Chinese carriers in joining global airline alliances is a main method of strengthening their international competitiveness. The Chinese aviation industry has to be exquisite in grasping the international trend to initiatively accommodate itself to the fierce global competition, making efforts in stepping into a strong civil aviation country."

Mr. Liu Shao Yong, Chairman, China Southern Airlines, added, "Joining SkyTeam with such an extensive network is not only a positive move for China Southern Airlines but a significant benefit to customers, offering more choices in destinations and air fares. Passengers who select SkyTeam have a world of choices including 14,615 flights to 728 worldwide destinations. SkyTeam goes where 80% of world passengers want to go. Meanwhile, SkyTeam offers customers numerous fare options such as 'Around-The-World', 'Europe Pass', 'America Pass' and 'Asia Pass', allowing passengers to circle the globe via travel on any- or all - of SkyTeam members."

Mr. Jong Hee Lee, President and COO of Korean Air, welcomed the forum on behalf of SkyTeam and commented, "As a leading airline alliance, SkyTeam is well aware of the importance of China and its air travel market, which is why we are very proud to soon have China Southern as a partner in our SkyTeam alliance. We have no doubt that when China Southern's joining process is completed, it will add new momentum to the growth of both SkyTeam and the Chinese aviation industry."

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About China Southern Airlines

China Southern Airlines is the largest carrier in The People's Republic of China in terms of fleet, routes and annual passenger traffic, currently in possession of more than 300 passenger and cargo aircraft including Boeing 777, 747, 757, 737 and Airbus A330, 321, 320, 319 and 300. China Southern is operating more than 600 domestic and international routes with destinations to 152 cities throughout China, regionally and throughout the world ... forming an extensive network, with Guangzhou and Beijing as its hubs, covering all of China with convenient connections to Africa, Australia, Europe and the United States.

In 2006, China Southern Airlines transported 49.21 Million passengers, ranking #1 in the Chinese aviation industry for 28 consecutive years, and is the only mainland Chinese carrier to enter into the world Top Ten passenger transport airlines. By the end of last year, China Southern had achieved more than 3 Million safe flight hours and was honored the "Three-Star Flight Safety Award" by the CAAC - the current most prestigious award in safe flight operations in the Chinese aviation industry. For additional information, please log on the CZ web site: http://www.cs-air.com .

About SkyTeam Alliance

SkyTeam, one of the three largest global airline alliances, was founded on 22 June, 2000, partnering ten members, including Aeroflot, Aeromexico, Air France, Alitalia, Continental Airlines, Czech Airlines, Delta Air Lines, KLM Royal Dutch Airlines, Korean Air and Northwest Airlines.

Through one of the world's most extensive hub networks, SkyTeam offers its more than 370 Million annual passengers a worldwide system of more than 15000 daily flights covering 728 destinations in 149 countries with frequent flyers more than 127.76 Million members. For more information, please visit web site: http://www.skyteam.com .

Three Big Global Alliances: Star Alliance, One World and SkyTeam.

China Southern Airlines' Three Steps To Join SkyTeam

* On 28 August, 2004, signing an initial agreement for future SkyTeam membership.

* On 28 June, 2006, signing GAAAA to make internal preparations to join SkyTeam.

* In the second half of 2007, planning to officially become a SkyTeam member.