Kansas City, MO—Vanguard Airlines, Inc. (NasdaqSC: VNGD) today announced that it is has closed the equity investment in the Company that was announced on June 25, 2001. The $4.5 million investment by a group of existing shareholders of the Company, which was initially advanced as loans callable upon demand, has been converted to equity. Together with the conversion of $500,000 of fees payable and interest on certain of the demand notes, the Company issued an aggregate of 25,026,249 shares of Vanguard Airlines common stock.

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