President & Senior VP of China's Largest Airline to Fly at Midnight on Jan. 1; President Yan and VP Han To Promote 100% Y2K Compliance.

GUANGZHOU, China--(BUSINESS WIRE)--Nov. 30, 1999--

China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People's Republic of China, will welcome the new millennium with airline President Yan Zhi Qing and Senior Vice President Han Ma Zhang on board China Southern Airlines flights at midnight on Jan. 1, 2000, to endorse and promote the airline's complete Y2K compliance.

China Southern Airlines' President Yan will be flying from Guangzhou to Los Angeles aboard the airline's Boeing 777 non-stop transpacific service.

Senior Vice President Han will fly on a China Southern Airlines Airbus A320 from Guangzhou to Singapore, while Vice President Hu Yun Qi will fly a Boeing 777 from Guangzhou to Beijing.

In addition, Vice President Li Feng Hua, with 28 years of experience as a certified commercial airline pilot, will be in the cockpit to fly a China Southern Airlines Boeing 757 from Guangzhou to Shanghai.

"We are completely confident in the safe and reliable air fleet at China Southern Airlines and look forward to welcoming our passengers into the new century and beyond," said Yan. He added that with Li piloting one of China Southern Airlines' aircraft, "We truly will greet the Y2K challenge with our own hands."

China Southern Airlines, the first Chinese carrier to pass Y2K compliance verification and acceptance conducted by the Civil Aviation Administration of China (CAAC), was ranked one of the best Chinese airlines on Y2K compliant preparations.

Beginning in May 1998, China Southern Airlines began its internal Y2K preparations. A special working group was established with VP Hu Yun Qi as the team leader.

The company has invested more than 5 million RMB on this project.

China Southern Airlines possesses China's youngest aircraft fleet. Its current Boeing 737s, 757s and Airbus A320s have successfully passed all Y2K compliance tests, with specific emphasis on the aircraft's internal Clock System, Flight Management and Flight Recording Systems.

The airline's nine B777s, the world's most state-of-the-art electrical aircraft, were all newly delivered within the past five years and are fully Y2K compliant.

China Southern's Y2K working team has focused on specific Y2K resolutions to those systems closely related to the company's normal daily operations such as the Airborne Equipment System, Maintenance & Engineering System, Computer Reservation System, NOTAM and Automated Dispatch System. Each system was classified for testing before they were proved to be Y2K compliant.

In addition, China Southern Airlines has upgraded its Cargo & Mail Settlement System. All Information Network and Human Resources Management Systems developed before 1997 have been tested individually and proved to be Y2K compliant.

Those new systems include Technical Documentation Management Systems and System Operations Control have been intentionally prevented from any Y2K problems. Furthermore, China Southern Airlines has upgraded its computer hardware by replacing numerous outdated 486 computers.

At a recent Y2K compliance verification meeting held at the China Southern Airlines headquarters, representatives of the CAAC said that, "China Southern Airlines had more comprehensive and accurate knowledge about the Y2K problems, with an earlier start, well-funded back-up, perfect organizational structure and effective project management and progressing schemes."

Li Chun Jian, deputy director general of the Planning Department of the 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."

Vice President Hu Yun Qi said that the airline is committed to continuing the improvement of the company's Y2K readiness, especially strengthening its emergency demonstration, to ensure safe flight operations into the new millennium.

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.