| China Airlines (CAL) and Connexion by
        Boeing have reached a definitive agreement for bringing the power of the Internet and
        high-speed connectivity to travelers on China Airlines’ North America flights during the initial service introduction phase. According to the agreement, the initial
        installation of the Connexion by Boeing real-time, high-speed Internet system aboard the CAL long-haul fleet of Boeing
        747-400 aircraft will begin in the second quarter of 2005, with service availability shortly thereafter. The new Internet service will first be available on CAL’s North America-bound flights to and from New York, Los Angeles, San
        Francisco, Anchorage and Vancouver, British Columbia. While financial terms were not disclosed, China Airlines is the sixth
        carrier in the world to sign a definitive agreement with Connexion by Boeing. “China Airlines continues to demonstrate market leadership by introducing passenger services that add value for its customers
        and for the airline’s operations,” said Connexion by Boeing President Scott Carson.  “We couldn’t be more pleased that they
        have selected Connexion by Boeing as their connectivity service provider.  Taiwan is a recognized IT leader in its adaptation of
        wireless and broadband services and we look forward to bringing its traveling public the benefits of real-time, high-speed
        connectivity in flight in the very near future.” Taiwan has a strong Internet subscriber base and is rapidly expanding wired and wireless broadband Internet access to give
        local industry a leading edge in the development of products that integrate wireless LAN technology. According to a recent
        survey conducted by the FIND team, part of the Institute for Information Industry's Advanced e-Commerce Institute, there are
        10.2 million Internet subscribers (accounts) in Taiwan, representing a 15 percent increase from the previous year. Mobile
        Internet subscriptions account for 37 percent of the total, replacing dial-up as the most popular method of Internet connection in
        Taiwan. “This agreement with Connexion by Boeing further positions China Airlines to be the preferred airline of choice among
        passengers by providing highly valued services and the highest attention to customer preferences and detail,” said CAL
        Chairman Chiang Yao-Chung. “The Internet plays an increasingly valuable role in the everyday lives of our passengers, who
        want to conduct business and stay in touch with friends and family, and we are proud to be the first Taiwanese airline to offer
        them high-speed, mobile connectivity in flight.” The agreement with Connexion by Boeing initially covers CAL’s long-haul fleet of Boeing 747-400 aircraft. The airline will extend
        the service to other aircraft at a future date. See
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