Cooperates with China Southern Airlines to Develop World-Class Enterprise Content Management Solution

News Release – October 20, 2010

(Hong Kong, 20 October 2010) – Automated Systems Holdings Limited (“ASL” or the “Group”) (SEHK stock code: 771), a leading IT services provider in Hong Kong is pleased to announce that its wholly-owned subsidiary, Guangzhou Automated Systems Limited (“ASL (Guangzhou)”), has just won its first and major project with China Southern Airlines Company Limited (“China Southern Airlines”) (SEHK stock code: 1055, SHSE stock code: 600029), a famous airline in China. The two parties are to cooperate in developing a world-class enterprise content management (“ECM”) solution. This project marks the success of ASL in its effort to expand services into China’s aviation industry.

China Southern Airlines is the largest airline in China in terms of fleet size, flight routes network and volume of passenger traffic. It also places emphasis on the development of corporate information technology (“IT”). In April 2009, China Southern Airlines was ranked 11th among the top 500 Chinese informationisation enterprises in 2008, and first among all airlines in China. In this project, ASL (Guangzhou) will provide a world-class ECM solution that will upgrade the Technical Document Management System (“TDMS”) currently being used by China Southern Airlines as well as build a new system architecture and platform. China Southern Airlines will be responsible for developing maintenance workflow and migrating its existing data to the new platform. Implementation of the project has started at the headquarters of China Southern Airlines, located in Guangzhou.

The upgraded systems will be used by its aircraft maintenance workers across the country and is expected to be completed by next year. TDMS is the core system of China Southern Airlines. It provides all-round management of aircraft maintenance technical documents, including all aircraft maintenance manuals, job cards, engineering orders (EOs) and technical information. The upgraded TDMS will not only manage the existing maintenance technical information of the current fleet of Boeing aircraft in China Southern Airlines, but also cater for the maintenance needs of the enormous Airbus A380, which will soon be put into service. It can also further improve the flow for aircraft maintenance staff in handling enquiries, and downloading maintenance information. Hence, China Southern Airlines can better implement a paperless management system for technical information in its aircraft maintenance and enhance overall efficiency and competitiveness. The project was tailor-made for China Southern Airlines by ASL (Guangzhou) and ASL is to offer software and comprehensive services that include system upgrade, data format conversion tools, testing, on-site support and maintenance along with professional training.

To ensure smooth delivery of the project as scheduled and allow China Southern Airlines to operate the system in compliance with the safety standards of international and Civil Aviation Administration of China (CAAC), ASL (Guangzhou) has been leveraging the Group’s extensive support network in the Pearl River Delta region, including its offices in Shenzhen and Guangzhou, and the Offshore Development Excellence Center (“ODEC”) in Zhuhai. One of the departments in the Hong Kong headquarters, which was awarded with the ISO 9001 quality management system certificate and Capability Maturity Model Integration (CMMI) – Maturity Level 3 Rating, has formed an ECM team comprising technicians, project manager and consultants who possess expertise in ECM.

The team will not only operate according to the above internationally recognised standards, but will also manage project processes with reference to Project Management Professional (PMP), Six Sigma and Information Technology Infrastructure Library (ITIL) standards as well, reflecting the Group’s competence in deploying international ECM solutions and offering one-stop IT services. ASL can also provide design, development, consultancy, implementation, integration, maintenance support and training services to meet the unique business needs of different users.

China Southern Airlines’ knowledge of aircraft maintenance and the aviation business was also essential to the smooth implementation of the project. China Southern Airlines possesses strong aircraft maintenance capabilities. Its joint-venture company, Guangzhou Aircraft Maintenance & Engineering Company Ltd. (“GAMECO”), has built the largest aircraft maintenance hangar in Asia. It has also partnered with German MTU to build the largest aircraft engine overhaul facility, offering the highest standard of maintenance excellence in mainland China.

Additionally, China Southern Airlines has earned two second prizes from the National Science & Technology Progress Award, for its System Operations Control Center and Engine Performance Monitoring System. In 1995, 2001, 2003, 2004 and 2007, China Southern Airlines was honored five times with the “Golden Roc Cup” from the CAAC, this annual award representing the highest achievement in the areas of safety in China’s aviation industry. China Southern Airlines, with its extensive experience in the aviation industry and aircraft maintenance, will facilitate the effective implementation of the project.

Ms. Yu Gui Tao, the IT Director of the China Southern Airlines IT Center, said, “China Southern Airlines is committed to the pursuit of excellence and innovation. We are very pleased to have ASL (Guangzhou) as our IT services provider, helping us enhance our ECM capabilities, thus enabling us to continue fulfilling our ‘customer first’ commitment. We believe that following the successful implementation of TDMS, we will be able to manage our maintenance technology information documents more effectively for all of our aircraft, including the Airbus A380, thereby accelerating workflow and enhancing overall efficiency. This will also allow us to provide reliable, on-time and convenient quality services that not only satisfy but exceed users’ expectations.”

Mr. Lai Yam Ting, CEO of Automated Systems Holdings Limited, said, “We are very pleased to see the Group secure our first project with China Southern Airlines. This represents a major step forward for the Group in its effort to expand its operations in Mainland China to a new area, the aviation industry. ASL has years of experience in implementing ECM systems for many customers from different industries inside and outside Mainland China, including six Government departments in the HKSAR, PRC Government department, financial service companies, a nuclear power plant in Mainland China, accounting firms and entertainment groups in Macau. With more than a decade of experience in providing IT services to other global airlines, our understanding of the aviation industry enables us to provide international ECM solutions and related professional experience to different airlines in Asia Pacific region.”

This project reflects the Group’s determination to develop the China market which holds enormous potential, as well as its effort to help new and existing clients in the Pearl River Delta to expand their businesses in that region and surrounding areas. In fact, by setting up customer service centers in four major cities within mainland China (Beijing, Shanghai, Hangzhou, Shenyang), along with an ODEC in Zhuhai and offices in Shenzhen, Guangzhou, Macau, Taiwan and Hong Kong, the Group has established a wide IT services network across Mainland China, Hong Kong and Taiwan to provide more convenient cross-territory services for domestic and international companies that have invested in the Greater China Region. Coupled with the extensive coverage in China, technology knowledge and comprehensive supplier network of the Group’s holding company, Beijing Teamsun Technology Co., Ltd. (SHSE stock code: 600410) (“Teamsun”), the greater synergies thus created between the Group and Teamsun have substantially enhanced the Group’s cross-territorial support capability, and expanded its customer base in Mainland China. Therefore, the Group could provide a better service portfolio, comprehensive regional solutions and services with higher quality to customers.

Mr. Lai concluded, “The Group will leverage its strengths and resources in Hong Kong to achieve greater economies of scale for ASL (Guangzhou). We will provide IT infrastructure and all-round IT solutions, including business intelligence, networking, security, storage, integrated hospitality solutions and more to customers in Mainland China and those with plans to develop this market. In addition, we expect to see increasing demand for quality ECM from the global aviation industry, hence, the Group will continue to develop and capture opportunities in the related operations with an aim of elevating the business to a higher level in our quest to become one of the leading IT services providers in the Greater China region.”

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