SHANGHAI, March 21, 2006 – Shanghai Airlines and United Airlines today signed a code-share agreement that expands international destination options and frequent flyer opportunities for customers of both carriers.

Pending U.S. government approval, the 11 code-share flights covered by the agreement are scheduled to commence May 15.  Once the agreement takes effect, customers from both carriers will be able to accrue and redeem frequent flyer miles and enjoy airport lounges supported by both carriers.

"Shanghai Airlines and United Airlines have been cooperating in a number of areas for more than 10 years," said Zhou Chi, chairman of Shanghai Airlines.  "Shanghai Airlines was awarded the right to operate flights between China and the U.S. at the end of 2005 as a result of China’s liberalization of the aviation market, specifically on the China to U.S. routes.  The code-share agreement between United Airlines and Shanghai Airlines will provide passengers traveling between China and the United States with more diversified flight options, convenient connections and improved service."

"This agreement between Shanghai Airlines and United represents our strong and growing commitment to customers on both sides of the Pacific," says Glenn Tilton, United president and chief executive officer.  "We are pleased to work closely with our partners at Shanghai Airlines, to extend our route network from Shanghai to four key cities in China, while providing the traveling public of the PRC with non-stop access on United to San Francisco and Chicago, and hundreds of other destinations in the United States and worldwide."

Customers will be able to purchase one ticket, from China or the United States, for an entire trans-Pacific journey.

United routes listed under the agreement include Shanghai to Chicago and San Francisco; San Francisco to Los Angeles, Newark and New York (John F. Kennedy International Airport); and Chicago to Newark and New York (LaGuardia International Airport).  Shanghai Airlines flights included in the agreement depart from Pudong International Airport in Shanghai to Shenyang, Chengdu, Dalian and Qingdao.

About Shanghai Airlines

Shanghai Airlines, founded in 1985, is the first commercial airlines company with multiple investments in China.  Currently, Shanghai Airlines has a fleet of 43 aircraft including the world’s most advanced Boeing 737, 757, 767, CRJ, Hawker and MD-11.  Shanghai Airlines flies to more than 150 domestic and regional routes reaching more than 60 large and medium-sized cities throughout China and abroad.  Shanghai Airlines recently launched passenger and cargo flights from Shanghai to Macau and Hong Kong.  It also operates 8 international passenger and cargo flights from Shanghai to Japan, Germany, South Korea, Thailand, Vietnam, Cambodia, and Russia.  During its development, Shanghai Airlines established strategic alliances with many aviation companies in China and overseas and has cooperated with over 40 international airlines including United Airlines, Lufthansa, ANA and Virgin Atlantic.  In 2004 Shanghai Airlines obtained the International Air Transport Association (IATA) Operational Safety Audit (OSA) certificate issued by IATA, becoming the first airline awarded the certificate in China and North Asia.

Since its establishment 20 years ago, Shanghai Airlines has remained focused on safety, customer satisfaction and is constantly in the pursuit of excellence.  Shanghai Airlines’ main objective is to be the best domestic airline and the first choice for passengers both domestically and internationally.  Shanghai Airlines has achieved satisfactory economic and social benefits through its excellent safety record, high-quality service standards, entrepreneurial culture, strong operations and decisive management.  The net capital of Shanghai Airlines is over 20 times higher than it was 20 years ago.  Shanghai Airlines was awarded the “Nation-wide Customer Satisfaction Enterprise” and "Shanghai Top Qualify Enterprise" in 2002 and 2004 and the "Golden Quality Award" from the city of Shanghai in 2004 and 2005.  Additionally it was selected as No.1 in the "Civil Aviation in My Eyes in 2005" by the CAAC.

Shanghai Airlines has maintained a leading position for its on-time reliability in the industry.  It ranked No.1 in 2003 and No.2 in 2004 and 2005 in on-time performance by the country's civil aviation by the CAAC.  Shanghai Airlines has always stressed its business practice while paying close attention to customers.  In July 2004, Shanghai Airlines acquired the former China United Airlines which was re-launched as a commercial airline on Oct. 25, 2005.  Shanghai Airlines Cargo Co., Ltd. will be officially inaugurated in 2006.  At the same time, Shanghai Airlines has formed a comprehensive distribution channel comprising of airlines, tours and hotels. On Feb. 18, 2006 the first "Shanghai Airlines Holiday Inn" opened.  For more information about Shanghai Airlines, please visit its website: www.shanghai-air.com

About United

United Airlines (OTCBB: UALAQ.OB) operates more than 3,400 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C.  With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States.  United is also a founding member of Star Alliance, which provides connections for our customers to 790 destinations in 138 countries worldwide.  United's 57,000 employees reside in every U.S. state and in many countries around the world.  News releases and other information about United can be found at the company's Web site at united.com.

About United in the Asia-Pacific region

United operates more than 210 services a week between the Asia-Pacific region and the U.S. The airline has more than 2,500 employees based in the region. United flies from 13 Asia-Pacific cities including Bangkok, Beijing, Hong Kong, Ho Chi Minh City, Melbourne, Nagoya, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo. The airline operates two cabin crew bases in Tokyo and Hong Kong with almost 1,000 flight attendants based in the region. United was named "Best Transpacific Airline" in the 2005 OAG Airline of the Year Awards, "Best North American Airline" by TTG Asia’s 2005 travel poll and "Best North American Airline" by Business Traveller Asia-Pacific in 2005, 2004, 2003, 2002 and 2001.

About United in China

Having started service to China in 1986, United Airlines was the first U.S. carrier to launch non-stop services between China and the U.S.  United Airlines is currently the largest carrier between China and the U.S.  2006 will be the 20th anniversary of United Airlines serving China.

United doubled the number of flights in 2004 and today operates more non-stop services from Beijing and Shanghai than any other airline.  The airline's four daily non-stop flights connect Beijing and Shanghai to Chicago and San Francisco. United also has a sales office in Guangzhou.

In August 2005, United signed a five year agreement with Aircraft Maintenance and Engineering Corporation (Ameco) to conduct airframe heavy maintenance for United's B777 fleet. United will also carry out specialized maintenance work for Air China’s aircraft at its maintenance base in San Francisco. Air China and other PRC airlines remain United's largest maintenance customers in the Asia-Pacific region.

In January 2006, United Services Flight Training, a division of United Airlines, announced that it was the first training provider outside of China to be certified under Civil Aviation Administration of China (CAAC) new approval process to train PRC airline pilots.

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