China Southern Announces Official Airbus A320/319 Order;

Official Company Statement on Purchase of 21 New Aircraft 
Travel Writers / Business Editors
GUANGZHOU, China--(BUSINESS WIRE)--April 9, 2004
Further to China Southern Airlines' announcement dated
January 30, 2004, the Board hereby announces that on April 8, 2004,
the Company and China Aviation Supplies entered into the Airbus
Aircraft Acquisition Agreement with Airbus for the purpose of
acquiring 15 A320-200 aircraft and six A319-100 aircraft from Airbus. 
As stated in the announcement of the Company dated January 30,
2004, the Directors believe that the acquisition of the Airbus
Aircraft will further expand the flight service network and operating
capacity of the Company, thereby enhancing its ability to compete
significantly in the industry. The Directors also believe that the
terms of the Airbus Acquisition Agreement are fair and reasonable and
in the interests of the shareholders of the Company as a whole. 
CSAHC, which currently owns approximately 50.30% of the issued
share capital of the Company, has approved the Transaction. 
CSAHC does not have any interest in the Transaction other than as
a shareholder of the Company. As the relevant percentage ratio for the
Transaction with regards to the Consideration Test under Rule 14.07 of
the Listing Rules is above 25%, but less than 100%, the Transaction
constitutes a major transaction under the Listing Rules. The
Transaction is also required to be disclosed pursuant to the relevant
rules and regulations of the Shanghai Stock Exchange. 
The Board has noted the recent increase in the trading volume of
the shares of the Company on April 7, 2004, and wishes to state that,
save as disclosed in this announcement, it is not aware of any reason
for such increase. 
Trading in the shares of the Company was suspended from 9:30 a.m.
on April 8, 2004, at the request of the Company pending the release of
this announcement, and will be resumed from 9:30 a.m. on April 13,
2004. 
THE AIRBUS AIRCRAFT ACQUISITION AGREEMENT 
Reference is made to the announcement of the Company dated January
30, 2004. The Board hereby announces that on April 8, 2004, the
Company and China Aviation Supplies entered into the Airbus Aircraft
Acquisition Agreement with Airbus for the purpose of acquiring 15
A320-200 aircraft and six A319-100 aircraft from Airbus. The Airbus
Aircraft Acquisition Agreement is conditional upon government approval
being obtained, which has already been obtained. 
Dated: 
April 8, 2004 
Parties: 
(i) the Company, as the purchaser; 
(ii) China Aviation Supplies Import and Export Group Corporation
as the import agent. The Company confirms that, to the best of the
Directors' knowledge, information and belief, having made all
reasonable enquiries, China Aviation Supplies and each of its
beneficial owner is an independent third party and not a connected
person (as defined in the Listing Rules) of the Company; and (iii)
Airbus SNC, a company incorporated in Toulouse, as the vendor. The
main business activity of Airbus is that of aircraft manufacturing.
The Company confirms that, to the best of the Directors' knowledge,
information and belief, having made all reasonable enquiry, Airbus and
each of its beneficial owner is an independent third party and not a
connected person (as defined in the Listing Rules) of the Company. 
None of the parties to the Airbus Aircraft Acquisition Agreement
owns any shares of the Company. 
Aircraft to be acquired: 
15 A320-200 aircraft and six A319-100 aircraft 
Consideration: 
As the relevant percentage ratio for the Transaction with regards
to the Consideration Test under Rule 14.07 of the Listing Rules is
above 25%, but less than 100%, the Transaction constitutes a major
transaction and is therefore subject to approval by the Company's
shareholders under the Listing Rules. The Transaction is also required
to be disclosed pursuant to the relevant rules and regulations of the
Shanghai Stock Exchange. 
According to the information provided by Airbus, the market price,
as contained in the Airbus catalog provided to the Company by Airbus
dated March 31, 2004, of a A320-200 aircraft is in the range of
US$57.6 to 61.6 million and that of a A319-100 aircraft is in the
range of US$50.6 to 61.2 million. 
The aggregate consideration for the Airbus Aircraft, which is
payable wholly in cash and is determined after arm's length
negotiation between the parties, is lower than the market price as
contained in the Airbus catalog dated March 31, 2004. 
Payment and Delivery Terms: 
The aggregate consideration for the acquisition of Airbus Aircraft
is payable by cash in installments. The Airbus Aircraft will be
delivered in stages to the Company through the years 2005 to 2006. 
Source of Funding: 
The Transaction will be wholly funded through commercial loans by
commercial banks. Such commercial banks are not and will not be
connected persons (as defined in the Listing Rules) of the Company. As
of the date hereof, the Company has not entered into any agreement
with any of these commercial banks for financing the Transaction. 
REASONS FOR AND BENEFITS OF THE TRANSACTION 
The Company's principal business is that of civil aviation. As
stated in the announcement of the Company dated January 30, 2004, the
Directors believe that the acquisition of the Airbus Aircraft will
further expand the flight service network and operating capacity of
the Company, thereby enhancing its ability to compete significantly in
the industry. The Directors also believe that the terms of the Airbus
Acquisition Agreement are fair and reasonable and in the interests of
the shareholders of the Company as a whole. 
FURTHER INFORMATION 
CSAHC currently owns approximately 50.30% of the issued share
capital of the Company and it has approved the Transaction. Each of
CSAHC and its associates (as defined in the Listing Rules) does not
have any interest in the Transaction other than as a shareholder of
the Company. No shareholder of the Company is required to abstain from
voting if the Company were to convene a general meeting for the
approval of the Transaction. CSAHC has approved the Transaction by way
of a written approval pursuant to Rule 14.44 of the Listing Rules. The
Company will send a circular containing the information required under
the Listing Rules in relation to the Transaction within 21 days after
the publication of this announcement. 
The Board has noted the recent increase in the trading volume of
the shares of the Company on April 7, 2004 and wish to state that,
save as disclosed in this announcement, it is not aware of any reason
for such increase. Trading in the shares of the Company was suspended
from 9:30 a.m. on April 8, 2004 at the request of the Company pending
the release of this announcement, and will be resumed from 9:30 a.m.
on April 13, 2004. 
Definitions: 
In this announcement, unless the context otherwise requires, the
following terms shall have the following meanings: 
"Airbus" Airbus SNC, a company incorporated in Toulouse 
"Airbus Aircraft" 15 A320-200 aircraft and six A319-100 aircraft 
"Airbus Aircraft the aircraft acquisition agreement dated April 8,
2004 pursuant to which the Company and Acquisition Agreement" China
Aviation Supplies have agreed to acquire and Airbus has agreed to sell
the Airbus Aircraft 
"Board" the board of Directors 
"China Aviation Supplies" China Aviation Supplies Import and
Export Group Corporation 
"Company" China Southern Airlines Company Limited 
"CSAHC" China Southern Air Holding Company 
"Directors" the directors of the Company, who, at the date of this
announcement, include Yan Zhi Qing, Wang Chang Shun, Zhou Yong Jin, Xu
Jie Bo, Wu Rong Nan, Liu Ming Qi, Peng An Fa, Wang Quan Hua, Zhao Liu
An and Zhou Yong Qian as the executive directors; and Simon To, Peter
Lok, Wei Ming Hai, Wang Zhi and Sui Guan Jun as the independent
non-executive directors 
"Listing Rules" The Rules Governing the Listing of Securities on
the Stock Exchange "Stock Exchange" The Stock Exchange of Hong Kong
Limited "Transaction" the acquisition of Airbus Aircraft under the
Airbus Aircraft Acquisition Agreement By order of the Board 
Su Liang 
Company Secretary 
Guangzhou, the People's Republic of China 
April 8, 2004 
CONTACT:
China Southern Airlines
Jeff Ruffolo, 909-734-6141
RuffoloPR@aol.com
-0- Apr/09/2004 14:00 GMT