Air Canada announced today that it will take up and pay today for an aggregate of 68,750,000 Common Shares and Class A Non-Voting Common Shares pursuant to its issuer bid that expired on November 29, 1999.

Pursuant to the bid, 103,742,844 Common Shares and 66,516,968 Class A Non-Voting Common Shares were tendered as at the expiry time. Air Canada will take up today 41,670,000 Common Shares (representing 40.586 per cent of the Common Shares deposited pursuant to the specific election and 33.022 per cent of the Common Shares deposited pursuant to the proportionate election), and 27,080,000 Class A Non-Voting Common Shares (representing 40.829 per cent of the Class A Non-Voting Common Shares deposited pursuant to the specific election and 38.070 per cent of the Class A Non-Voting Common Shares deposited pursuant to the proportionate election). Air Canada has transferred to CIBC Mellon Trust, the depositary under the Offer, the necessary funds in order to make payment for all shares taken up.

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