Singapore, 24 June 2003 - The Board of Directors of China Aviation Oil (Singapore) Corporation Ltd ("CAO") is pleased to announce that International Enterprise Singapore has extended CAO's membership under the Global Trader Programme (GTP) for a period of five years.

Under the terms of membership, CAO will continue to enjoy a concessionary tax rate of 10 per cent on qualifying income for five additional years, commencing 1 January 2003. (Qualifying income occurs in two instances - when CAO trades with another GTP member, or when it trades with an offshore counterparty.) Such qualifying income includes profits on both international oil trading and jet fuel procurement. This tax savings is significant. By way of example, on Financial Year 2002 income, the concessionary rate we enjoyed resulted in a tax savings of approximately S$2.4 million. As our business continues to grow in scale and scope, the savings will grow along with it.

Managing Director and CEO Chen Jiulin said, "We are elated by the extension of our membership in the Global Trader Programme, as it endorses the continued strength of our trading operations, and CAO's contribution to the Singapore economy. Trading and procurement are valuable parts of our three-pronged strategy, along with strategic investments, and we plan on their continued profitability."


By Order of the Board
Adrian Chang
Company Secretary