China World Trade Corporation announced today that its newly acquired subsidiary, the New Generation Group, has formed a partnership to provide travel-related information via an exclusive telephone hotline at the new Guangzhou Baiyun International Airport, which commenced operations last Thursday.

This exclusive hotline offers the latest information in connection with the new airport as well as flight information for travelers. The data is provided directly by the Air Traffic Administrative of the Mid-Southern China. Callers will be charged US$0.13 per minute by China Telecom. New Generation will own a majority interest in the partnership, which will allow it, and as a result, China World Trade Corporation, to consolidate revenue and earnings from the venture. A majority of the revenue generated by the callers will go to the partnership.

This is an excellent example of the strong recognition that New Generation has generated in China, said Chi Hung Tsang, Chairman of China World Trade Corporation. Our recently completed acquisition of a majority interest in New Generation has positioned China World Trade at the forefront of a burgeoning industry. Recently, the Chinese state-run media announced that there had been over a 35% increase in air traffic in the first quarter of 2004. The recent agreement to increase flights between the US and China by 460% in the next six years, combined with open sky policies towards other countries should enable this partnership to not only generate significant earnings growth, but enhance the awareness of China World Trade and the vast array of services we offer the businessman.

The new airport is the Province of Guangdong's pivot airport, with the airports in Shenzhen and Zhuhai playing the role of feeder airports. The airport cost 19.8 billion yuan (US$2.39 billion) to build and officially commenced operation on August 5, 2004.

The initial phase covers an area of some 15 square kilometers and is capable of handling 25 million passengers and 1 million tons of cargo annually. The airport has two runways and it also boasts the largest cargo station as well as the largest hangar currently in China. The cargo station covers more than 10,000 square meters and the hangar, which costs more than 900 million yuan (US$108.43 million) to construct, takes up 96,000 square meters, large enough for four Boeing 777 aircraft to be parked there. The airport will ultimately have five runways, of which two runways are for passenger flights and the remaining three are catered to cargo flights.