Continental Airlines (NYSE: CAL and CAL.A) announced today that it has acquired a minority ownership stake in the privately held Florida-based regional carrier Gulfstream International Airlines.

In 1997, Gulfstream International and Continental entered into a highly successful code-sharing arrangement. This agreement has encompassed coordinated flight schedules and one-stop check-in for connections between Continental`s global system and Gulfstream International`s routes in Florida, the Bahamas and the Caribbean. Gulfstream International flights operate as “Continental Connection,” with joint marketing activities including Gulfstream International`s participation in E-Ticketing and OnePass frequent flyer program benefits.

“Gulfstream International has provided our customers with access to desirable destinations in Florida, the Bahamas and the Caribbean. This agreement will allow the existing relationship to continue and grow over the next 10 years,” said Greg Brenneman, Continental president and chief operating officer.

“Continental is a great partner and our alliance with them gives us access to a broad network and excellent marketing benefits,” said Tom Cooper, president and CEO of Gulfstream International.

Gulfstream International also has code-share agreements with other carriers that are unaffected by Continental`s investment.

Last month Gulfstream International initiated service from San Juan, Puerto Rico, to Saint Thomas, Saint Croix, Saint Maarten and Saint Kitts, with new service to Tortola and Virgin Gorda scheduled to commence on Feb. 10, 2000. At San Juan, Gulfstream International flights connect with Continental service to and from each of its three U.S. hubs.

Gulfstream International () operates a fleet of Beechcraft 1900 aircraft, serving 10 Florida cities, five Bahamian destinations and five Caribbean islands with 230 daily departures. It is the third largest carrier, measured in departures, operating out of Miami International Airport.

Continental Airlines is the fifth largest airline in the U.S., offering more than 2,100 departures daily to 129 domestic and 85 international destinations. Operating major hubs in Newark, Houston and Cleveland, Continental (http://www.continental.com) has extensive service throughout the Americas, and to Europe and Asia.

Continental has won first or second place Frequent Flyer Magazine and J.D. Power awards for four consecutive years. Continental has received numerous awards for its BusinessFirst premium cabin (Condé Nast Traveler, OAG Official Airline Guides, Entrepreneur and Smart Money magazines), OnePass frequent flyer program (InsideFlyer’s Freddie Awards) and overall operations and management (Air Transport World’s 1997 Airline of the Year).

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