China Southern Launches New TANG Cargo Sales & Marketing System; ``No Orange Flavored Drink But Powerful New Cargo System,'' Says CZ

Business Wire, Oct 13, 2003

Business Editors/Travel Writers

GUANGZHOU, China--(BUSINESS WIRE)--Oct. 13, 2003

China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People's Republic of China, www.cs-air.com/en, is please to announce the launch of its exclusive new TANG Cargo Sales & Marketing System.

An Internet pioneer in the sales of airline E-ticketing in The People's Republic of China, China Southern Airlines reaches another important breakthrough in the IT field with the launch of TANG.

"Our new TANG program is not a orange flavored breakfast drink but a fully functional IT program which will expand China Southern Cargo by tapping into network transportation and logistical distribution as it further implements China Southern's strategic cargo goals," said Mr. Wang Changshun, President, China Southern Airlines.

China Southern's Cargo Sales & Marketing System project (code named TANG) officially launched in June 2000. The initial beta test version was successfully created in April 2001 and was put into test operation at China Southern's home airport in Guangzhou.

During the next three years, the TANG project team has kept improving the software program and after 10 different levels of programming upgrades is ready to launch TANG to its corporate and individual cargo customers.

TANG utilizes the database development platform of Microsoft's SQL 2000 in its design and development. TANG design features include the high speed data transfer of cargo information and offers 13 different functional modules, including: Space Booking, Goods Consignment, Warehouse Management, Departure, Arrival, Container Equipment Management, Statistics & Analysis, Dynamic Flight Data Module, Static Data Module, Voice Information, Electronic Data Exchange, Public Notice Management and Online Cargo.

Compared with similar types of domestic cargo on-line products, TANG offers clients five significant characteristics, specifically: 24-hour online cargo tracking, global network coverage, visual cargo monitoring, convenient operation profile and multiple-end information.

Of these many functions, the new online cargo function is the first innovative product of its type available in The People's Republic of China.

TANG is completely Internet-based ... and is a user-friendly system which is completely integrated with China Southern's varied branches and subsidiaries, agents and customers and can be used from anywhere in the world.

Users can access TANG via the World Wide Web, 24-hours a day and conduct their cargo business anytime and anywhere, including using new features such as Online Waybill, Online Booking and Online Information.

TANG is fully integrated with China Southern's two branded cargo services -- Easy Cargo 5000 and Cargo Connections -- offering one complete seamless turnkey cargo service for shippers. TANG also offers door-to-door shipping and delivery booking functionality.

"Shippers can enjoy the safety and security of transmitting encrypted Internet information and at the touch of their computer mouse, can arrange for their goods to be transported to varied destinations around the world via China Southern's advanced extensive air and ground transport network," said Mr. Wang.

He added that, "TANG is an ultra-modern means of sales & marketing, management and operations of cargo which will significantly enhance China Southern's operational efficiency and service quality."

On June 18, CAAC Minister Mr. Yang Yuanyuan headed a cargo research team to Guangzhou to review China Southern Airlines' cargo operations. During this "white-glove inspection," Minister Yang expressed his strong significance to the TANG System and specifically challenged the airline for an on-site demonstration of the system.

After his hands-on test, Minister Yang said that it was impressive that China Southern Airlines has taken the lead in the IT cargo industry in China by "making significant use of E-commerce to tap into cargo online sales & marketing."

After formally launching TANG, China Southern Airlines will utilize its world-wide network technology advantages to further integrate the global cargo resources of the China Southern Air Holding Company (the airline group with China Southern Airlines currently is merging with China Northern and Xinjiang Airlines) to realize its goals of a fully-developed cargo system -- anchored by the latest Boeing 747-400 aircraft and passenger aircraft belly space -- to build the largest Chinese cargo network covering the whole nation and radiating throughout the world. In March 2003, China Southern Airlines installed the TANG System in China Northern and Xinjiang Airlines which will unify the three airlines into a major West-North-South triangle via high-speed IT technology. China Southern Airlines is the first of the major airline groups to fully integrate its cargo information systems.

Mainland Chinese industry experts who have analyzed China Southern Airlines' successful launch of this "Online Cargo" computer system say that it will enable China Southern Cargo to better grasp new opportunities of tapping cargo business in the hotly contested market competition.