CAOHC RESTRUCTURE AVIATION OIL CORPORATION WITH BIG-TWO OIL GIANTS

China National Petroleum Corporation (CNPC),China Petrochemical Corporation (Sinopec) and China Aviation Oil Holding Company (CAOHC)signed a framework agreement in Beijing on November 8, 2004 to establish a limited aviation oil company on the basis of China Aviation Oil Supply Corporation, one of CAOHC's core companies. The new company is expected to be set up in 2005.