Largest Airline in China: China Southern Airlines Fully Y2K Compliant; Airline Certified by China's Civil Aviation Administration.

GUANGZHOU, China--(BUSINESS WIRE)--Nov. 16, 1999--

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in The People's Republic of China, has been certified as a fully "Y2K compliant" airline by the Civil Aviation Administration of China (CAAC).

The announcement was made during a Y2K Compliance Verification and Acceptance Meeting in Guangzhou at China Southern Airlines' world headquarters.

Li Chun Jian, deputy director general, Planning Department, CAAC, said, "China Southern's successful solutions to the Y2K problems will greatly enhance its image as a listed company on the New York and Hong Kong Stock Exchanges."

Hu Yun Qi, vice president, China Southern Airlines, added: "Being the largest airline in The People's Republic of China has special and unique responsibilities. The reliability of our fleet and the safe transportation of our passengers has and will always be Job No. 1."

He said that the airline is committed to continuing the improvement of the company's Y2K readiness to ensure safe flight operations into the new millennium -- which begins at 12:01 a.m. January 1, 2000.

During an exhaustive multi-year period, China Southern Airlines allocated enormous resources and manpower to solve any potential Y2K software computer glitches that might obscure key engineering, aircraft maintenance, navigation and communication and airline reservation systems.

The CAAC acceptance team conducted a methodical compliance verification of China Southern Airlines' internal systems, including the airline's Information Network, Airborne Equipment System, NOTAM and Automated Dispatch System, Technology Information Management System, Human Resource Management System and System Operations Control (SOC) Center, as well as the Y2K Emergency Response Command System.

During the meeting in Guangzhou, China Southern Airlines also conducted a "spot check" demonstration of the company's SOC and NOTAM Y2K readiness systems, as well as the Automated Dispatch System.

System engineers additionally briefed CAAC team members on the airlines' Y2K Emergency Response Program. After an in-depth question-and-answer period and document verification, the acceptance team expressed confidence in China Southern Airlines' accurate and full awareness of the Y2K problem, sound organizational structure and project management.

CAAC representatives praised the airline's staff for its diligence and extra efforts in meeting this critical Y2K situation.

Ranked No. 1 in passengers carried in China for the past 20 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 Hong Kong, Shanghai, Beijing, Guangzhou, Guilin and Kunming, as well as international service, including Amsterdam, Bangkok, Ho Chi Minh City, Kuala Lumpur, Los Angeles, Osaka and Singapore.