KLM Joins China Southern's Sky Pearl FFP Club; Dutch Airline Gains Foothold Into Largest FFP Program in China.

Business & Travel Editors

AMSTERDAM--(BUSINESS WIRE)--Jan. 14, 2002

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in The People's Republic of China, is pleased to announce that The Flying Dutchman, the frequent flyer program of KLM Royal Dutch Airlines, has joined the Sky Pearl Club as a new member of China Southern Airlines' FFP Family.

Beginning immediately - Sky Pearl Club members who travel on KLM (a) will earn mileage and free flights, just the same for China Southern passengers.

KLM Royal Dutch Airlines (www.klm.com) and its partners serve more than 400 cities in 78 countries on six continents with a fleet of 130 aircraft from its homebase Amsterdam Schiphol in the Netherlands, one of the world's most modern hub airports. KLM is the core airline of the KLM Group, further comprising KLM Cityhopper, KLM uk, and Transavia.

Note (a): "KLM" (as defined by both KLM and China Southern) means flights operated by KLM (only KL prefix), KLM Cityhopper (only KL prefix), KLM uk (only KL & UK prefix) and KLM exel (only KL & XT prefix).

         Earning mileage on KLM Flights:

         Business Class (C) Statute Kilometers x 125%
         Economy Class (M)  Statute Kilometers x 100%

         Award Options on KLM Flights:

       Class of Service                    Round-trip      Round-trip
Zones                                    Economy Class  Business Class

                                           Mileage Required (Unit: Km)

Within Europe                                  20,000        40,000
Within America                                 60,000        100,000
Within Asia & Australia                        60,000        100,000
Within Africa & Middle East                    20,000        40,000
Between Europe and Asia                        150,000       200,000
Between Europe and America                     150,000       200,000
Between Europe and South Africa                120,000       180,000
Between Europe and North Africa / Middle East  100,000       150,000

Note:

a) Mileage accrued on qualifying KLM Flights can be counted towards
Sky Pearl Club elite status levels.

b) Please present the Sky Pearl Club membership card upon reservation,
ticketing or check-in at the airport.

c) Keep all boarding passes, copies of used KLM airline tickets for
possible mileage retro claims until the appropriate mileage appears on
the Sky Pearl Club Mileage Statement.

d) If selected to redeem an award on KLM Flight, Sky Pearl Club
members need to contact any of the following China Southern Domestic
Ticket Offices: Guangzhou, Beijing, Shanghai, Shenzhen, Wuhan,
Changsha, Haikou, Zhengzhou, Kunming, Shantou, Guilin, Xiamen, Nanning
or any China Southern International Ticket Office.

Privileges for VIP Sky Pearl Club Members:

Silver Card service benefits on KLM Flights:

-- Extra Luggage allowance of 10kg;

-- Business Class check-in - irrespective of class flown.

Gold Card service benefits on KLM Flights:

-- Extra Luggage allowance of 20kg;

-- Business Class check-in - irrespective of class flown.

If you have any questions about China Southern Airlines' expanded new partnership with KLM Royal Dutch Airlines, please feel free to contact The Sky Pearl Club:

Service Hotline: Guangzhou (8620) 8667-8815

Service Fax: Guangzhou (8620) 8612-0972

E-mail: [e-mail]


Mailing Address: The Sky Pearl Club
                 China Southern Airlines Co., Ltd.
                 Baiyun International Airport
                 Guangzhou, 510405
                 P.R. China

The largest airline in The People's Republic of China for the past 22 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, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.

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