transport

Progress of Absorption of Shanghai Airlines

June 30, 2010 (Press Release - Chinavestor)

PROGRESS OF THE IMPLEMENTATION OF THE ABSORPTION OF SHANGHAI AIRLINES THROUGH SHARE EXCHANGE

This announcement is made by the Company pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The absorption of Shanghai Airlines Co., Ltd (“Shanghai Airlines”) by China Eastern Airlines Corporation Limited (HKG:0670) (NYSE:CEA) (the “Company”) through share exchange (the “Absorption through Share Exchange”) has been approved by China Securities Regulatory Commission (“CSRC”). As the implementation of the Absorption through Share Exchange has not been completed, pursuant to the requirements under Provision 31 of the Administrative Rules on Material Asset Reorganization of Listed Companies, the progress of the implementation of the Absorption through Share Exchange is set out as follows:

The procedures for the settlement of assets and arrangement of personnel in relation to the Absorption through Share Exchange is still in process. Upon completion of the settlement of assets, Shanghai Airlines will be cancelled. To avoid competition, the first meeting of the sixth session of the board of directors of the Company has resolved to approve the transfer of 70% equity interest in Shanghai Aviation Catering Co., Ltd. , 100% equity interest in Shanghai Aviation Import & Export Co., Ltd. and 100% equity interest in Shanghai Aviation Advertising Service Co., held by Shanghai Airlines and its subsidiaries to China Eastern Air Catering Investment Co., Ltd., Eastern Aviation Import & Export Co., Ltd. and Eastern Aviation Advertising Service Co., Ltd. respectively. As at the date of this announcement, no agreement has been entered into by the Company. China Eastern Airlines (HKG:0670) (NYSE:CEA) will comply with the relevant disclosure requirements as and when appropriate. For details please refer to the announcement of the Company published on the website of Shanghai Stock Exchange on 28 June 2010.

China Eastern Airlines (NYSE:CA) will press on with the implementation of the Absorption through Share Exchange, perform the relevant procedures in accordance with relevant requirements and the reply from CSRC, and announce the progress of the implementation on a timely basis.

By order of the board of directors

CHINA EASTERN AIRLINES CORPORATION LIMITED

Luo Zhuping

Director and Company Secretary

The directors of the Company as at the date of this announcement are:

Liu Shaoyong (Chairman)

Li Jun (Vice Chairman)

Ma Xulun (Director, President)

Luo Chaogeng (Director)

Luo Zhuping (Director, Company Secretary)

Sandy Ke-Yaw Liu (Independent non-executive Director)

Wu Xiaogen (Independent non-executive Director)