Two-Day Span Sees China Southern Airlines Take Delivery of New Airbus A319 & Boeing 737-800 Aircraft; 1st Next Generation Airplane in Hunan Commercial Market.

Business Editors/Travel Writers

HAMBURG, Germany--(BUSINESS WIRE)--May 23, 2003

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 two brand new aircraft in a two-day span ... with the delivery today of its first-ever Airbus A319 aircraft.

Yesterday in Seattle, China Southern Airlines took delivery of its 8th 737-800 aircraft from Boeing.

"It is great to be back on schedule with our new aircraft deliveries," said Mr. Peng Anfa, Vice President, China Southern Air Holding Company at the delivery ceremony here in Hamburg.

Mr. Peng emphasized that even as China's largest airline continues its relentless battle to fight the SARS virus, "we will continue with our business plan to upgrade and modernize our fleet."

In 2003, China Southern Airlines is slated to take delivery of four Airbus A319. Each new Airbus A319 offers 128 seats in a two-class configuration -- eight Business Class seats and 120 Economy Class seats. China Southern Airlines currently operates 20 Airbus A320 and today's delivery is the first new Airbus aircraft in more than two years.

In Seattle, China Southern Airlines' Mr. Luo Minghao, Deputy General Manager, Hunan Branch served as the airline's delivery team leader and said, "Of course the past several months have been challenging for everyone at our airline company but we are determined to press forward with our business schedule and we look forward to putting this beautiful new Boeing aircraft into operation."

The delivery of China Southern's newest passenger aircraft is the eighth of 20 new Boeing 737-800 "Next Generation" aircraft in a deal that was inked on October 3, 2001.

Once certified in China by the CAAC, China Southern Airlines' Hunan Branch will immediately place the new aircraft into operation. The CZ Hunan Branch has been servicing its marketing using "aged" 737-500 aircraft and the brand new 800 series will be the first of its kind in the Hunan commercial marketplace.

China Southern Airlines' Hunan Branch currently has five 737-500 aircraft in operation and they all will be "swapped" out with all-new Next Generation Boeing aircraft by the close of 2003.

The new 737-800 aircraft will replace the same number of existing 737 series aircraft currently operated by China Southern Airlines and will significantly lower the average age of the airline's fleet -- already one of the youngest civil aviation fleets in China.

China Southern's new 737-800 aircraft will offer 167 seats in a two-class configuration ... eight First Class seats and 159 Economy Class seats.

The largest airline in The People's Republic of China for the past 23 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.