UAL Corp. Permits Sales of Stock by ESOP

CHICAGO, January 13, 2003 - UAL Corp. (NYSE: UAL), the parent company of United Airlines, today announced that the company is permitting State Street Bank & Trust, the independent trustee of the UAL ESOP, to sell up to 12,857,600 additional shares of UAL stock held by the ESOP.  The company delivered a letter to State Street Bank & Trust on Friday pursuant to an order from the U.S. Bankruptcy Court overseeing the companyå‘s bankruptcy case requiring that the company inform the ESOP trustee of the number of shares that it could dispose of without jeopardizing the companyå‘s use of its net operating losses (NOL).  Preserving the NOL is expected to generate substantial tax benefits following Unitedå‘s emergence from Chapter 11 protection.
If the ESOP trustee had sold, as of December 31, 2002, all 12,857,600 shares permitted by the company`s letter, the ESOP, together with the other company-sponsored benefit plans holding shares of UAL equity, would have held more than 20% of UAL common stock.  Accordingly, “Sunset” (as described in the company`s most recent Form 10-Q) would not have occurred had such sales been made as of such date.

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