The board of directors of the company has examined and approved a proposal to stand surety, on a joint and several basis, on bank loans totaling up to RMB 213.6 mln with ICBC Guangzhou Liuhua sub-branch and Agricultural Bank of China, Guangzhou Baiyun sub-branch for the company's pilots recruited in 2008 for training for which the pilots paid for by themselves.

Other than guarantees provided for the company's pilots recruited in 2007 for training for which the pilots paid for by themselves, there are no external guarantees provided by the company as of the time of this announcement.

Board of Directors
27 Aug 2008

Source: Shanghai Stock Exchange

Date: 28 Aug 2008

CN01/NW/DM/BT/KM