Kansas City, MO—Vanguard Airlines, Inc. (NasdaqSC: VNGD) announced today the appointment of Mark M. Peterson to the position of vice president of flight operations. He will oversee all aspects of the Company’s flight operations including flight safety, pilot training, in-flight operations and crew scheduling.

Peterson joined Vanguard in 1995 and has held positions including manager of flight standards and FAA program designee. He was most recently the chief pilot for the airline, managing Vanguard’s 140 pilots in all facets of aircraft operations. Before joining Vanguard, he was a career naval officer and pilot in the U.S. Navy where he acted as chief instructor pilot and commander in charge of the Navy’s fleet replacement squadron for the E-6A (B-707). Peterson holds master’s degrees from the Naval War College and Salve Regina College in Newport, Rhode Island.

Jeff Potter, CEO and President of Vanguard Airlines, said, “With Mark’s long tenure here at Vanguard and his hands-on experience since early in the Company’s history, he is an excellent match for this position. In a year of many changes, Mark’s 28 years of aviation experience will bring a fresh perspective to this position as we integrate MD-80 series aircraft into our fleet. Mark’s tremendous reputation among our flight crews is a testament to his leadership abilities. We are fortunate to have him onboard.”

Mark Peterson said, “I am honored to fill this role at such an important time for the company. We have a dedicated and well-trained group of pilots and flight attendants here at Vanguard, and I look forward to overseeing the continued successful integration of the MD-80s into our fleet.”

Peterson replaces William McKinney, who served as vice president of flight operations since April 1996. “I’ve enjoyed my five years with Vanguard, and wish it the best success,” said McKinney.

“Bill has served Vanguard with ability and distinction and we wish him well in his new career,” said Potter.

Kansas City-based Vanguard Airlines, which began service in December 1994, is a value-priced passenger airline. The airline provides convenient all-jet service to 14 cities: Atlanta, Austin, Buffalo/Niagara Falls, Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Las Vegas, Los Angeles, Myrtle Beach, New Orleans, New York-LaGuardia, Pittsburgh and San Francisco. The Company has approximately 950 full-time employees and currently operates a fleet of 11 Boeing 737s and one MD-80. For more information, visit the Company’s Web site at www.flyvanguard.com.

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