10:59 MEILAN AIRPORT<00357> - Announcement (10) "GDS" Guangdong Securities Limited, the independent financial adviser retained in respect of the Non-exempt Continuing Connected Transaction that are subject to independent shareholders' approval. "Hainan Airlines" (Hainan Airlines Company Limited), a joint stock limited company incorporated in the PRC and one of the Promoters of the Company "Hainan Food" (Hainan Airlines Food Company Limited), a company established in the PRC and 51% owned by Hainan Airlines "HK$" or "HK dollars" Hong Kong dollars and cents respectively, the lawful currency of and "cents" Hong Kong "HNA Group" (HNA Group Company Limited), a company established in the PRC and one of the Promoters of the Company "Hong Kong" the Hong Kong Special Administrative Region of the PRC "Independent Board an independent committee of the Board for the purpose of Committee" reviewing the Non-exempt Continuing Connected Transactions, which comprises Mr. Xu Boling, Mr. Xie Zhuang and Mr. Fung Ching Simon, all of whom are independent non-executive Directors "Independent Shareholders other than Parent Company, Hainan Airlines and Shareholders" HNA Group "IPO" the initial public offering of the Company's Shares in the year of 2002 "Listing Rules" the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited "Meilan Airport" the civil airport known as (Haikou Meilan International Airport) located in Haikou City, Hainan Province, PRC "New Annual Caps" the proposed annual caps in respect of the Non-exempt Continuing Connected Transactions for the three years ending 31 December 2007 and set out in paragraph IV and V of this announcement "Non-exempt Continuing the non-exempt continuing connected transactions which are and Connected will continualy to be entered into between the Group and the Transactions" relevant connected parties that set out in paragraphs IV and V of this announcement "Parent Company" (Haikou Meilan International Airport Company Limited), a company established in the PRC and the controlling shareholder of the Company "Promoters" the parties to a promoters agreement dated 20th December, 2000 in relation to the promotion and incorporation of the Company including, inter alia, Parent Company, Hainan Airlines, China Southern Airlines and HNA Group "Prospectus" the prospectus issued by the Company on 6th November, 2002 in connection with the IPO "Revised 2004 the transaction and the revised annual cap that proposed by the Transaction" Board for the transaction referred to in paragraph V(a) of this announcement for the year of 2004 "RMB" or "Renminbi" Renminbi yuan, the lawful currency of the PRC "Shareholder(s)" the holder(s) of the shares of the Company "Stock Exchange" The Stock Exchange of Hong Kong Limited "Yangzi Express" (Yangzijiang Air Express Company Limited), a limited liability company established in the PRC which is held as to 85% by HNA Group, 10% by Shanghai Airport (Group) Company Limited and 5% by Hainan Airlines By Order of the Board Hainan Meilan International Airport Company Limited Mr. Chen Wenli Chairman Haikou, People's Republic of China 24 March 2005 * For identification purpose only