09:38     CNAC<01110> - Announcement (4)                                      

    "Directors"     the directors of the Company                              
                                                                              
    "Dragonair"     Hong Kong Dragon Airlines Limited, an                     
    airline operator incorporated in Hong Kong with                           
    limited liability and a 43.29% owned associated                           
    company of the Company                                                    
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative                      
    Region of the PRC                                                         
                                                                              
    "Listing Rules" The Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Macau" the Macau Special Administrative Region of                        
    the PRC                                                                   
                                                                              
    "PRC"   The People's Republic of China                                    
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Wet Lease Agreement"   the aircraft wet lease                            
    agreement dated 15 March 2005 between Air Macau and                       
    Air China pursuant to which Air Macau agreed to lease                     
    the Aircraft to Air China on a wet lease basis                            
                                                                              
    "Wet Lease Extension    the aircraft wet lease                            
    extension agreement dated 13                                              
      Agreement"    April 2005 between Air Macau and Air                      
    China pursuant to which Air Macau agreed to extend                        
    the wet lease of the Aircraft to Air China for a further                  
    6 months on substantially the same terms as set out                       
    in the Wet Lease Agreement                                                
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong                    
    Kong                                                                      
                                                                              
    "US$"   United States dollars, the lawful currency of                     
    the United States of America                                              
                                                                              
    In this announcement, except as otherwise indicated,                      
    US$ has been translated into HK$ at the rate of HK$7.80                   
    = US$1.00 for reference purpose only.                                     
                                                                              
    By Order of the Board                                                     
    Kong Dong                                                                 
    Chairman                                                                  
                                                                              
    Hong Kong, 18 April 2005                                                  
                                                                              
    As at the date of this announcement, the executive                        
    Directors are Messrs. Kong Dong, Chuang Shih Ping,                        
    Zhang Xianlin, Tsang Hing Kwong, Thomas, Gu Tiefei                        
    and Zhao Xiaohang and the independent non-executive                       
    Directors are Messrs. Lok Kung Nam, Hu Hung Lick,                         
    Henry, Ho Tsu Kwok, Charles, Li Kwok Heem, John and                       
    Chan Ching Har, Eliza.                                                    
                                                                              
                                                                              
    * For the Chinese name, please refer to the press announcement today.