Air China Regulatory News (AIRC)

12 Jan 2009 11:30

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 753)

CLARIFICATION ANNOUNCEMENT

(Overseas Regulatory Announcement)

This announcement is issued by the Company pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules").

Recently, there has been some domestic and overseas media reports stating that Air China Limited (the "Company") or its controlling shareholder, China National Aviation Holding Company ("CNAHC"), are in the midst of an acquisition relating to East Star Airlines Company Limited ("East Star Airlines"). Having made due enquiry with the management of the Company and CNAHC, the Company hereby makes the following clarification:

Having regard to the development strategy of CNAHC as a whole, CNAHC is making preliminary communication with the relevant parties in relation to the acquisition of the entire or part of the share capital of East Star Airlines (the "Transaction"). However, no formal agreement has been entered into with respect to the Transaction and it is not yet certain if the Transaction will eventually materialise. The Company has not been involved in the Transaction but will pay close attention to its progress. In the event the Transaction materialises, the Company would actively communicate with CNAHC to prompt CNAHC's compliance with the Non-competition Agreement entered into between CNAHC and the Company and make appropriate arrangements in respect of CNAHC's shareholding in East Star Airlines in accordance with the relevant provisions of the Non-competition Agreement. The Company will make timely disclosures if there are any new matters or developments that become discloseable under applicable rules and regulations.

The operations of the Company have remained normal to date and there is no discloseable information which has not been disclosed.

By order of the Board

Air China Limited

Huang Bin Tam Shuit Mui

Joint Company Secretaries

Beijing, 12 January 2009

As at the date of this announcement, the Directors of the Company are Mr. Kong Dong, Ms. Wang Yinxiang, Mr. Wang Shixiang, Mr. Christopher Dale Pratt, Mr. Chen Nan Lok, Philip, Mr. Cai Jianjiang, Mr. Fan Cheng, Mr. Hu Hung Lick, Henry*, Mr. Wu Zhipan*, Mr. Zhang Ke* and Mr. Jia Kang*.

* Independent non-executive Directors of the Company