China Southern Inks Pact to Purchase 10 New 787 Aircraft from Boeing; Signing Ceremony Held in Guangzhou to Finalize Deal.

GUANGZHOU, China -- China Southern Airlines (NYSE:ZNH)(SEHK:1055)(SHH:600029) -- www.cs-air.com/en -- with the largest and most technically advanced airline fleet in The People's Republic of China, is pleased to announce that it has made a firm purchase of 10 Boeing 787 aircraft.

The pact was signed at a formal signing ceremony at The China Hotel, a Marriott Hotel, in Guangzhou.

"The 787 is the latest aircraft design concept to be manufactured by Boeing and will be the most state-of-the-art aircraft in the world," said Mr. Liu Ming Qi, Vice Chairman, China Southern Airlines Co., Ltd., who signed the purchase agreement on behalf of China's largest airline.

Commenting on the aircraft purchase, Mr. Liu said, "It is an important strategy of China Southern Airlines to purchase the 787 aircraft in an effort to enhance its competitiveness in the international marketplace. The signing of this 787 Purchase Agreement also marks one step forward in the cooperative relationship between our two companies. It is not only conducive to improving the operation of China Southern Airlines but also enables us to provide better services to our growing passenger base throughout the globe."

He added, "In doing this, we can make a greater contribution to promoting economic cooperation and trade benefits between China and the rest of the world."

Also signing the contract were Mr. Si Xian Min, President of China Southern Airlines; Mr. Robert K. Laird, Vice President, China Sales, Boeing Commercial Airplanes; and Mr. Zhu Hai Ping, Vice President, China Aviation Supplies Import & Export Group.

The first 787 aircraft is slated to be delivered to China Southern in July 2008, one month prior to the start of the 2008 Summer Olympic Games.

The balance of the delivery order is expected to be delivered to China Southern through the remainder of the decade, ending in 2010.

China Southern's configured 787 will have seating for 223 passengers, with a maximum range of 15,700 kilometers (8,500 nautical miles), and will offer outstanding flight effectiveness.

The airline plans to use the 787 on medium- and long-range routes, including international routes, partly replacing current 757 aircraft.

China Southern Airlines was the first mainland carrier to introduce the Boeing 777, 757 and 737, and it is expected that the further introduction of the 787 series will accordingly reduce the airline's reserve cost in its spare parts and engines.

The largest airline in The People's Republic of China for the past 26 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, 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.