SHANGHAI AIRLINES AND STAR ALLIANCE AGREE SEPARATION

FRANKFURT, Germany - July 30th, 2010 - As a result of its recent merger with China Eastern, Shanghai Airlines has agreed with Star Alliance to terminate its membership by the end of October. Shanghai Airlines will continue to offer all Star Alliance customer benefits and its passengers will enjoy their worldwide alliance benefits until October 31st, 2010. These include, for example, the collection and redemption of miles, participation in various Star Alliance fare products as well as the provision of extra benefits to Star Alliance Gold and Silver customers.

About Shanghai Airlines:

Incorporated in 1985, Shanghai Airlines (hereinafter referred to as "SAL") is China's first commercial airline with multiple investments.
SAL has a fleet of 77 aircraft, including Boeing 737, 757 and 767 series. As a Shanghai-based carrier, taking the "Safety First, Customer Priority, Quality Service and Excellence Orientation" as its business philosophy and corporate pursuit, SAL offers flights in and out of Shanghai to over 170 domestic and 13 international and regional destinations.

About Star Alliance:

The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognised by numerous awards, including the Air Transport World Market Leadership Award, Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Adria Airways, Aegean Airlines, Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, Blue1, bmi, Brussels Airlines, Continental Airlines, Croatia Airlines, EGYPTAIR, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAM Airlines, TAP Portugal, Turkish Airlines, THAI, United and US Airways. Air India has been announced as a future member. Overall, the Star Alliance network offers over 21,200 daily flights to 1,172 airports in 181 countries.

Source: Star Alliance