To mark Shangri-La's successful fifth year partnership with Air China,its first mainland Chinese airline alliance and now one of its top frequentflyer partners, the group is offering Air China Club members a number ofattractive benefits at the group's China properties.

From nowuntil 31 May 2003, Air China Club members paying 'China Executive Plan'rates at any of the 16 Shangri-La or Traders hotels in mainland China willbe rewarded with 50% Air China bonus mileage, as well as entry into a luckydraw. The top five prizes include three-day trips to any city where there isa Shangri-La or Traders hotel in China and Singapore, with air ticketssponsored by Air China. Members will also be invited to join Shangri-La'saward-winning guest loyalty programme, Golden Circle, so that they can enjoyadditional benefits during their stay.

Air China Club's Gold cardmembers will also benefit from a 15% discount at all restaurants and bars atShangri-La's mainland China properties between 1 March and 31 August 2003.Air China Club's Silver card members will receive a 10% discount.

Air China has an extensive network flying to many of the key destinationswhere Shangri-La has hotels and resorts, namely, Beijing, Dalian, Changchun,Shenyang, Harbin, Nanjing, Hangzhou, Qingdao, Shanghai, Shenzhen, Wuhan,Xian, Bangkok, Hong Kong, Jakarta, Penang, Singapore, and Yangon. CommentsXYZ, director of Air China's passenger department: "This was the firstairline and hotel partnership in mainland China. We chose to work withShangri-La because of its extensive properties throughout the region, aswell as its reputation for service excellence. We are strengthening thiscooperation even further with our goal to provide premium quality allianceoffers to the growing number of Air China Club members."

GiovanniAngelini, Shangri-La's chief executive officer and managing director, said:'Airline partners are an integral component of our international marketingactivities. We are proud to have been Air China's first hotel alliance inChina and that its frequent flyer programme is now one of our topproducers.'

Shangri-La signed with Air China Club in 1998, at whichtime the number of Air China Club members was only 40,000. With China's fastgrowing economy, membership has increased rapidly to over 800,000 worldwide.

Like Air China, Shangri-La continues to expand in China and withinthe next two years there will be a number of new hotels opening in mainlandChina, including Zhongshan, Zhengzhou, Fuzhou, Shijiazhuang, Changzhou,Shanghai and Sanya. This will further enhance the benefits for Air ChinaClub members as those paying a qualifying rate will receive 800 Air Chinakilometres each time they stay at any Shangri-La or Traders hotel.

Hong Kong-based Shangri-La Hotels and Resorts is the largest Asian-baseddeluxe hotel group in the region and regarded as one of the world's finesthotel management companies. The company currently operates 38 hotels andresorts and has almost 20,000 rooms in 10 countries and regions: China, HongKong SAR, Taiwan, Fiji, Indonesia, Malaysia, Myanmar, Philippines, Singaporeand Thailand.