Press Release 2006

Shanghai, China, 10th May, 2006

Shanghai Airlines invited to become member of Star Alliance

Star Alliance, the airline network for earth, today announced it has invited Shanghai Airlines Co., Limited of Shanghai, China to join the alliance.

With this move both Shanghai Airlines and Star Alliance open a new chapter in Chinese aviation history.

Shanghai Airlines Chairman Zhou Chi said the invitation to join Star Alliance would only further enhance Shanghai Airlines’ position as a leader in the Chinese aviation market.

“With our large domestic network and increasing international routes we believe Shanghai Airlines brings a wealth of experience and value to Star Alliance. We look forward to working with Star Alliance toward full membership over the coming months.”

Star Alliance Chief Executive Officer Jaan Albrecht commented: “For Star Alliance this invitation to Shanghai Airlines represents a giant step forward in the evolution of the alliance. Having a high quality Chinese carrier of the calibre of Shanghai Airlines will add immeasurable value to our network.”

Chairman Chi and Mr Albrecht also added that Shanghai Airlines and Star Alliance would be working closely together to obtain more resources from airport authorities for the mutual benefit of all parties.

Commented Chairman Zhou: With the development of Shanghai Pudong Airport, we should make full use of the airport resources, provide quick and convenient transferring and connecting service which is called "Under One Roof", and offer high-quality service to business passengers. This is also the main character of Star Alliance. We hope that the establishment of the second terminal building in the near future will provide high-standard, high-quality and high-efficiency operating service, thus greatly support Start Alliance.

Star Alliance and Shanghai Airlines will now work toward the formal entry of Shanghai Airlines to the alliance over the coming months.

About Star Alliance: Star Alliance was established in 1997 as the first truly global airline alliance to offer customers worldwide reach and a smooth travel experience. Star Alliance has been voted Best Airline Alliance by Skytrax in 2003 and 2005. The members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, THAI, United, US Airways and VARIG Brazilian Airlines. Regional member carriers Adria Airways (Slovenia), Blue1 (Finland) and Croatia Airlines enhance the global network. Overall, the alliance offers more than 15,500 daily flights to 842 destinations in 152 countries.

About Shanghai Airlines: Shanghai Airlines is China’s first commercial airline, established in 1985. With a fleet of 42 aircraft Shanghai Airlines had inaugurated over 150 domestic, international and regional routes by the end of 2005. Its fleet includes Boeing 757-200s, B737-700s, B 737-800s, CRJ-200s a Hawker-800 business jet and a MD-11 freighter. Shangahai Airlines currently operates an extensive domestic route and internationally to Japan, South Korea, Russia, Vietnam, Cambodia and Thailand with extensive cargo routes to Europe.