Kansas City, MO—Vanguard Airlines announced today that it had signed a multi-year strategic services alliance with Hewlett-Packard Open Skies. Under the terms of the agreement, Hewlett-Packard Open Skies will provide an innovative and advanced set of services aimed at providing Vanguard Airlines with the most advanced reservations technology geared for low cost airlines.

Vanguard Airlines will replace its internal reservation system with Hewlett-Packard Open Skies` hosted reservation system, as well as install Hewlett-Packard Open Skies` TakeFlight, an internet booking system, and FlightSpeed, the graphical user interface offering unparalleled speed and ease of use for reservation agents. Vanguard Airlines already uses the Hewlett-Packard Open Skies` Revenue Management System, a leading-edge product for maximizing revenue performance.

Russell Winter, Vanguard`s Vice President of Marketing & Planning, said, “By migrating to Hewlett-Packard Open Skies` hosted reservation system with its many enhancements and e-commerce solutions, Vanguard Airlines will have further access to Hewlett-Packard`s vast capabilities and renowned reliability at a fraction of the cost we would have incurred with any competing system. This was a logical advancement of our longstanding relationship with Hewlett-Packard Open Skies and we are delighted, once again, to align our technology strategies with those offered by Hewlett-Packard Open Skies.”

Roy Breslawski, Hewlett-Packard Open Skies` Manager of Sales & Marketing, added, “Our strategy is to help our airline customers grow their businesses. As their technology partner, we are excited about bringing them the most innovative reservations and revenue-maximizing solutions available. Our products and services enable them to shift more rapidly towards e-commerce, which is fueling competitive advantage in the airline industry today.”

Vanguard, which began service in December 1994 and is headquartered in Kansas City, is a low-fare, passenger airline providing convenient, scheduled jet service. Vanguard serves the following ten cities: Atlanta, Buffalo (effective July 15, 1999), Chicago-Midway, Cincinnati, Dallas/Ft. Worth, Denver, Kansas City, Minneapolis/St. Paul, Myrtle Beach and Pittsburgh. The Company employs approximately 800 full-time equivalent employees and currently operates a fleet of eleven Boeing 737-200`s, with one more due for delivery in June 1999. The Company has also signed letters of intent for three replacement aircraft, with anticipated delivery dates in the second half of 1999. Vanguard reported its first-ever annual operating profit in 1998 and its fourth consecutive quarter of operating profits in the first quarter of 1999.

Hewlett-Packard Company, a leading global provider of computing, and imaging solutions and services for business and home, is focused on capitalizing on the opportunities of the internet and the proliferation of electronic services. Hewlett-Packard has 122,800 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year, of which $39.5 billion was computer-related revenue. Information about Hewlett-Packard, its products and the company`s Year 2000 program can be found on the World Wide Web at http://www.hp.com.

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