June 20, 2007, Taipei, Taiwan ¡V China Airlines was again selected as one of the top companies in Taiwan by the Corporate Governance Asia Annual Recognition Awards 2007, an event held by Corporate Governance Asia magazine. Other Taiwanese companies on the list were TSMC, AU Optronics and Taiwan Mobile. This marks the second year that CAL has been selected by the magazine as one of the best companies in Taiwan in the area of corporate governance.

¡§China Airlines has spared no effort to improve its corporate governance and abide by industry ethics,¡¨ said China Airlines Chairman Philip Wei, addressing the presentation ceremony. ¡§This award reflects that our hard work has earned international recognition.¡¨

Corporate Governance Asia is a Hong Kong-based journal specializing in corporate governance in Asia, and most of its readers are business and finance experts. The selection was based on the criteria that the company must have an excellent track record in corporate governance, it must have been involved in a specific public activity related to improving or enhancing its corporate governance during the previous 12 months, and it must have implemented significant and specific governance reforms. This is the second year that the magazine has issued the awards.

In giving the award, the journal ranked the companies according to five principles: board and management practices; media recognition; business ethics and corporate social responsibilities; investor transparency; and finance. The award ceremony was held at the JW Marriott Hotel in Hong Kong on June 18. Other famous awardees included Singapore Airlines, Lenovo and Hutchison Whampoa.

CAL continues to earn international recognition for its corporate governance regime. In 2005, world-renowned Euromoney magazine ranked CAL as the top company in Taiwan in the area of corporate governance. Winning the corporate governance award again this year is a recognition of the progress that China Airlines has made in this all-important area. The contributions of the CAL board are central to the company¡¦s continuing excellence and ongoing improvement in corporate governance.