China Aviation Oil (Singapore) Corporation Ltd ("the Company")

Singapore, 9 December 2004 - Further to the Company's announcement dated 8 December 2004, the Company wishes to announce that it has acquired the entire issued and paid up capital of CAOT Pte Ltd (comprising one ordinary share of par value S$1.00) for the purchase consideration of S$1.00 for the purpose of carrying on the business of jet fuel procurement on an agency basis.

In the circumstance, CAOT Pte Ltd has become a wholly owned subsidiary of the Company with effect from 9 December 2004.