AMR Corp. , the parent company of American Airlines, Inc., today announced
the pricing of a public offering of $300 million aggregate principal
amount of senior convertible notes due 2024. The sale of the notes is
expected to close on February 13, 2004, subject to customary closing
conditions.
The notes will bear interest at a rate of 4.5 percent per annum, payable
semiannually in arrears. Each note will be convertible, under certain
circumstances, into AMR common stock at a conversion ratio of 45.3515
shares per $1,000 principal amount of notes. This represents an equivalent
conversion price of $22.05 per share (subject to adjustment in certain
circumstances), or a 40 percent premium over the New York Stock Exchange
closing price for the company’s common shares of $15.75 on February 9,
2004.

AMR may redeem the notes, in whole or in part, in cash on or after
February 13, 2009. Up to an additional $45 million aggregate principal
amount of the notes may be sold upon the exercise of an over-allotment
option granted to the underwriters of the notes.

AMR said the notes are to be guaranteed by American Airlines, Inc. AMR
plans to use the net proceeds from the offering for general corporate
purposes.

Credit Suisse First Boston is acting as the sole book-running manager for
this offering, and Morgan Stanley is acting as joint lead manager.

A registration statement relating to these securities has been filed with
the Securities and Exchange Commission. These securities may not be sold
nor may offers to buy be accepted prior to the time the prospectus
supplement for this offering becomes final. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction. The
prospectus supplement, when available, may be obtained from Credit Suisse
First Boston LLC, Prospectus Department, One Madison Avenue, New York, NY
10010 (telephone no. 212-325-2580).
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