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Jade Cargo Launch

Jade Cargo International successfully launches commercial flights to Amsterdam and Seoul
Shenzhen, August 17, 2006

--The Minister of Civil Aviation of China, Mr. Yang Yuanyuan, State Secretary Georg Wilhelm Adamowitsch of the German Ministry of Economics and Technology, senior representatives of the Civil Aviation Authority of China (CAAC), the Shenzhen Municipal Government and representatives from the shareholders officially celebrated the start of the operations of Jade Cargo International in the Kylin Villa, Shenzhen, South China.

On 5th of August 2006 the first and fully loaded Jade Cargo International B747-400ER freighter took off from Shenzhen Baoan International airport to its maiden commercial flight to the city of Amsterdam. After returning to its homebase in Shenzhen, the first flight to Seoul departed the day after.

During a hand over ceremony the Central Southern Administration of the CAAC officially awarded the Air Operator Certificate to Jade Cargo International which marked the beginning of the regular commercial flight operations for the airline.

Jade Cargo International, its shareholders and partners celebrated the first commercial flight with a grand ceremony in the Kylin Villa in the hills surrounding Shenzhen. Senior officials from all major authorities and organizations involved in the foundation of Jade Cargo International celebrated the official launch. The CAAC delegation was headed by Minister Yang Yuanyuan who was pleased to harvest the fruits of the CAAC policy to strengthen and internationalize the Chinese aviation industry. State Secretary Georg Wilhelm Adamowitsch values the creation of the first Sino-German airline joint venture as a further landmark in the already long-lasting and well-developed aviation cooperation of both nations.

Shenzhen Municipal Government¡¯s Mayor Mr. Xu Zongheng expressed his conviction that Jade Cargo International contributes significantly to the development of Shenzhen as an international air cargo hub attractive to the shipper and forwarder community: ¡°the birth of Jade Cargo International is a landmark project for the city and a cornerstone of our development strategy for the Shenzhen logistics industry¡±.

Equally supportive to Jade Cargo International, the shareholders Shenzhen Airlines, Lufthansa Cargo and the German development finance institute DEG ¨C Deutsche Investitions- und Entwicklungsgesellschaft expressed their dedication to develop Jade Cargo International to the leading Chinese air cargo carrier. Mr. Li Kun, CEO of Shenzhen Airlines and Chairman of the joint venture¡¯s Board of Directors: ¡°With Jade Cargo International, the Shenzhen Airlines Group successfully entered the international air cargo market and we believe that we can - together with our partners - develop the airline into a Chinese air cargo success story¡±.

Mr. Wolfgang Mayrhuber, the CEO of the Lufthansa Group: ¡°This joint venture underlines the innovative approach of the Lufthansa Group to the Chinese market, where Lufthansa is already active with more than ten joint ventures. Jade Cargo International is a key element in the strategy of Lufthansa Cargo to participate in the growth markets of today. Above all, the customers benefit from the strong presence in the Chinese market. Lufthansa links countries, cultures and people and opens up access to future markets."

Mr. Johannes-J¨¹rgen Bernsen, member of DEG¡¯s board of management, pointed out: ¡°DEG was the first German finance institute doing business in China. Because of China¡¯s strategic importance, it is now one of our major investment countries. We are proud to be an investor in a cargo airline, to develop the trade ties of China, the internationalization and privatization of the aviation sector¡±.

The inauguration was highlighted by a ribbon cutting ceremony that showed the unity and commitment of the authorities, the Municipal Government and the shareholders to make Jade Cargo International a true jewel of the Chinese aviation industry.

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