China Southern Takes Delivery of 15th New 737 Next Generation Aircraft; Second 737-700 Aircraft for Airline's Expanding Hubei Branch.

Business Editors/Travel Writers

WUHAN, China--(BUSINESS WIRE)--May 31, 2004

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in The People's Republic of China, is pleased to announce that it has taken delivery of its second Boeing 737-700 series aircraft for its expanding operations in Hubei Province.

The delivery of this new 737-700 aircraft is not from a new order ... but part of China Southern's original order of 20 Boeing 737-800 aircraft and is #15 in the total delivery. China's largest airline elected to accept the initial 12 aircraft in the 737-800 Next Generation series, with the balance of the delivery order to be taken in the 737-700 Next Generation series. The remaining five aircraft will be in the 737-700 series.

"This new aircraft will be a welcome addition to the ever growing Hubei marketplace as we continue to modernize our fleet for Central China," said Mr. He Zongkai, General Manager, China Southern's Hubei Branch.

Hubei Province, located in the heart of central China, is in the middle reaches of The Yangtze River. Railway and highways span the entire territory of the province -- as a result Hubei is of strategic importance connecting all points North, South, East and West. Hubei is rich in natural resources with more than 130 different minerals having been discovered in the Province. The Province covers 180,000 sq. km with a population of 56.54 million. The physical features of Hubei are higher in the west with the Daba Mountain and Shennongjia more than 3,100 m above sea level and lower in the east with the Yangtz & Hanjiang Plain. There are countless lakes on the plain.

Besides grain, cotton and oil, Hubei Province is teeming with fresh-water fish and shrimp, lotus roots, blunt-snout bream, tea, lung oil, edible fungus, raw lacquer and medicinal materials.

Hubei has developed industries such as iron and steel, machinery, power, chemical industries and light textile. Shiyan is an auto production base while Wuhan is the hub of the Yangtze River and the Beijing-Guangzhou Railway.

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, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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