The company was recently informed that China Aviation Industry Corporation was incorporated on 6 Nov 2008 and will succeed both China Aviation Industry Corporation I and China Aviation Industry Corporation II as the effective controller of the company and in the performance of all the rights and duties thereof. As a result, the company's effective controller will be changed to China Aviation Industry Corporation.

The company will disclose information in a timely manner as it becomes available and make an announcement when China Aviation Industry Corporation I's deregistration procedures are completed.

The Securities Times and the China Info website are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
10 Nov 2008

Source: Securities Times

Date: 11 Nov 2008

CN01/DC/LZ/JE/KM