China Southern Inks Strategic Deal with China Construction Bank.

Largest Chinese Carrier Obtains RMB10 Billion Yuan Credit Extension

BEIJING -- China Southern Airlines, (NYSE:ZNH)(HKSE:1055)(SHA:600029) - www.cs-air.com/en - the world's fastest growing International carrier and the largest airline in The People's Republic of China, has signed a strategic cooperation agreement today with China Construction Bank. Present at the signing ceremony were Mr. Liu Shao Yong, President of China Southern Air Holding Company & Chairman of China Southern Airlines, and Mr. Guo Shu Qing, Chairman of China Construction Bank.

China Construction Bank commits to provide China Southern Airlines a comprehensive credit extension up to RMB10 Billion Yuan.

"The signing of this strategic cooperation agreement today between China Southern Airlines and China Construction Bank will provide our two parties a strong guarantee in our bilateral full-side cooperation, laying a good foundation in a sustained developing relationship between a bank and an enterprise," said Mr. Liu Shao Yong, Chairman, China Southern Airlines.

Mr. Liu added that, "The signing of this strategic cooperation pact between China Southern Airlines and China Construction Bank is a win-win cooperation between a backbone Chinese carrier and a major Chinese bank."

China Southern Airlines operates more than 300 passenger and cargo aircraft, servicing more than 600 domestic and international routes with destinations to 142 cities.

The $3 Billion, Guangzhou Baiyun International Airport services as the airline's worldwide headquarters with Beijing as a key hub destination O offering passengers an extensive network covering all of China and Asia with convenient connections to Africa, Australia, Europe and the United States.

By the close of 2007, China Southern Airlines will officially join the SkyTeam Alliance - the world's largest global airline alliance O and through the SkyTeam partnership of member carriers - will be offering passengers access to more than 800 worldwide destinations.

Mr. Liu added, "As a Chinese saying going, 'A fence is supported with three pickets and a man is backed by three groups of people,' China Southern Airlines, as the largest Chinese carrier, its existence and development relies on the gracious support of the varied government bodies, all the banks and the various circles of the nation."

"For many years, the customers of China Southern Airlines have enjoyed significant advantages with our partnership with China Construction Bank in the areas of loans for capital construction; housing public accumulation funds; aircraft financing; loans for interest in the form of a deduction when selling a bill of exchange; general loans as well as both deposit and exchange settlements," said Mr. Liu.

He also added that the two parties have created significant advances in airline e-ticketing, capital polls and settlement via the Internet Banking Service.

The largest airline in The People's Republic of China for the past 28 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, Dubai, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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