UAL Agreement to Amend DIP Financing Facility

UAL Corporation, the holding company whose primary subsidiary is United
Airlines, announced today that the bankruptcy court approved an amendment
to its debtor-in-possession (DIP) financing facility with its current
lenders, including JPMorganChase, Citigroup, CIT and GE Capital. Key terms of the amendment include an extension of the maturity date from
June 30, 2005 through September 30, 2005, and a significant reduction in
the interest rates United must pay under the loan. In addition, the
amendment waives the January 2005 EBITDAR covenant and adjusts the minimum
monthly EBITDAR targets for United going forward. The amendment also
allows for a potential reduction in the minimum cash balance requirement
from $750 million to $600 million if United meets a certain EBITDAR
milestone.

“We are pleased to have amended our DIP financing facility on favorable
terms for United and our stakeholders,” said Jake Brace, United’s
executive vice president and chief financial officer. “The willingness of
lenders to participate in the amended DIP is reflective of our solid
business plan.”

“The changes to the financing agreement reflect our belief that United has
made significant progress to date in lowering its costs and executing on
its business plan,” Bill Repko, managing director at JPMorganChase.

Mr. Brace added, “While we still have a number of difficult issues to
address, including reaching long-term labor agreements with two of our
unions and pension resolution with three of our unions, this amendment
will continue our access to the DIP facility while we focus on those
efforts and move forward with additional restructuring initiatives in the
months ahead.”
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