A Share Issue 3

Air China Ld
03 August 2006

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents
of this announcement, makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any loss whatsoever arising
from or in reliance upon the whole or any part of the contents of this
announcement.





                               AIR CHINA LIMITED

 (a joint stock limited company incorporated in the People's Republic of China
                            with limited liability)

                               (Stock Code: 753)



           Determination of Indicative Price Range for A Share Issue


SUMMARY

The indicative price range for the A Share Issue has been set at RMB2.75 per 
share to RMB2.95 per share.



Reference is made to the announcement of the Company dated 24 July 2006 in
respect of the Company's proposed A Share Issue and the announcement dated 31
July 2006 in respect of the CSRC approval of the A Share Issue.



Following completion of preliminary price consultation among 67 institutions
recognized by the Securities Association of China, conducted from 31 July 2006
to 2 August 2006 in the PRC as required by the relevant PRC regulations, the
Company and the Sponsors for the A Share Issue have set an indicative price
range for the A Share Issue at RMB2.75 per share to RMB2.95 per share.



An announcement regarding the indicative price range of the A Share Issue will
be published in the newspapers in the PRC on 3 August 2006.



The indicative price range was determined based on factors including results of
preliminary price consultation and market conditions, taking into consideration
the average closing price of the Company's H Shares on the Hong Kong Stock
Exchange during the Price Consultation Period of the A Share Issue.



DEFINITIONS



In this announcement, unless the context otherwise requires, the following terms
shall have the following meanings:


'A Shares'                              the Domestic Shares which are proposed to be allotted and issued by the
                                        Company to qualified institutional investors as approved by CSRC and
                                        investors including domestic individuals, legal persons and etc. who
                                        have opened accounts at the Shanghai Stock Exchange (except those
                                        prohibited from subscribing for the shares by the applicable laws and
                                        regulations at the time of the A Share Issue) and listed on the
                                        Shanghai Stock Exchange

'A Share Issue'                         the proposed issue of not more than 2.7 billion A Shares by Company to
                                        qualified institutional investors as approved by CSRC and investors
                                        including domestic individuals, legal persons and etc. who have opened
                                        accounts at the Shanghai Stock Exchange (except those prohibited from
                                        subscribing for the shares by the applicable laws and regulations at
                                        the time of the A Shares Issue), which are proposed to be listed on the
                                        Shanghai Stock Exchange

'Company'                               Air China Limited, a company incorporated in the People's Republic of
                                        China with primary listing on The Stock Exchange of Hong Kong Limited
                                        and secondary listing on the Official List of the UK Listing Authority

'CSRC'                                  China Securities Regulatory Commission 

'Director(s)'                           the director(s) of the Company

'H Shares'                              overseas listed foreign shares of RMB1.00 each in the share capital of
                                        the Company which are listed on the Hong Kong Stock Exchange and traded
                                        in Hong Kong dollars and admitted to the Official List of the UK
                                        Listing Authority and are admitted for trading on the market for listed
                                        securities of the London Stock Exchange

'Hong Kong Stock Exchange'              the Stock Exchange of Hong Kong Limited

'Price Consultation Period'             the period commencing from the date the Company makes the preliminary
                                        offer document relating to the A Share Issue
                                        publicly available and ending on the date on which the book building
                                        process with the institutional investors is completed

'Sponsors'                              CITIC Securities Company Limited, China Galaxy Securities Company
                                        Limited, China International Capital Corporation Limited

'PRC'                                   the People's Republic of China, excluding, for the purpose of this
                                        announcement only, Hong Kong, Macau and Taiwan

'RMB'                                   Renminbi, the lawful currency of the PRC



                             By order of the Board

                               Air China Limited

                           Zheng Baoan    Li Man Kit

                           Joint Company Secretaries



Beijing, 3 August 2006



As at the date of this announcement, the Directors of the Company are Messrs Li
Jiaxiang, Kong Dong, Wang Shixiang, Yao Weiting, Christopher Dale Pratt, Ma
Xulun, Cai Jianjiang, Fan Cheng, Hu Hung Lick, Henry*, Wu Zhipan*, Zhang Ke* and
Jia Kang*.



*  Independent non-executive Director of the Company


                      This information is provided by RNS
            The company news service from the London Stock Exchange