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HNA Group To Participate In GE Engine Services (XIAMEN)

September 17, 2001

XIAMEN, FUJIAN PROVINCE, PRC - September 17, 2001 - Hainan Airlines Group Co., Ltd. (HNA Group) has become the newest shareholder in GE Engine Services (Xiamen) Co. Ltd. The other shareholders include China Eastern Airlines Co., Ltd., Taikoo (Xiamen) Aircraft Engineering Co., Ltd., Xiamen Aviation Industry Co., Ltd., and Engine Services (Asia) Investment Ltd. (GEL).

GE Engine Services (Xiamen), located at Xiamen's Gaoqi International Airport, celebrated its grand opening in June as an overhaul facility for CFM56 engines. CFM56 engines, which power Boeing 737 and Airbus Industrie A310, A320, A321, and A340 aircraft of more than 325 customers worldwide, are produced by CFM International, a 50/50 joint company of Snecma of France and General Electric Company.

"The participation of Hainan Group in GE Engine Services Xiamen marks the first step of the Group's growth strategy focusing on cooperating with a global entity at management, operations and technology levels," said Wang Jian, vice chairman of Hainan Group. "It will also help to ensure safety and quality services to end users. We expect to extend and deepen our cooperation with GE in the long run."

"We are extremely excited about having Hainan Group as part of our Xiamen joint venture," said George Oliver, president and CEO of GE Engine Services. "Hainan's participation, plus that of China Eastern Airlines, demonstrates the confidence that customers in the region place with GE Engine Services Xiamen and our willingness to work with them to meet their high expectations."

HNA Group is headquartered in Haikou, Hainan Province, People's Republic of China (PRC), and has offices throughout the world. Numbered among HNA Group's multiple businesses is Aviation Transportation, whose holdings include Hainan Airlines Co., Ltd. and China Xinhua Airlines, both of which operate CFM56-powered Boeing 737 aircraft.

In a separate but related transaction, HNA Group entered into a service agreement with GE Engine Services (Xiamen) whereby GE Engine Services (Xiamen) will maintain CFM56 engines of Hainan Airlines and China Xinhua Airlines.

GE Engine Services is a global provider of maintenance and support services that include overhaul and repair, component repair, on wing support, spare parts, engine/aircraft accessories service, remote diagnostics monitoring of aircraft in flight, and a full range of engine leasing plans. In addition to Xiamen, GE Engine Services engine overhaul and repair facilities are located at: Ontario, California; Strother Field, Kansas; Dallas/Ft. Worth, Texas; Petropolis, Brazil; Rio de Janeiro, Brazil; Kuala Lumpur, Malaysia; Nantgarw, Wales; and Prestwick, Scotland.

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  GE Aviation

GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, as well as integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. Follow GE Aviation on Twitter and YouTube.

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