PRNewswire-FirstCall MILWAUKEE Oct. 22 :

Midwest Express Holdings, Inc. today announced it has received the
proceeds from completion of the first step of its previously announced
sale of convertible senior secured notes.

The receipt of $15.0 million from the sale of the notes was subject to the
company delivering security for the notes. This was achieved by the
company terminating its existing bank credit facility by repaying certain
indebtedness under the facility and completing a transaction with
Milwaukee County, Racine County and the State of Wisconsin that resulted
in Milwaukee County becoming the guarantor on $14.2 million of industrial
development revenue bonds.
The convertible senior secured notes sold to the investors have not been
registered under the Securities Act of 1933, as amended. Accordingly, the
securities may not be offered or sold in the United States except pursuant
to an effective registration statement or an applicable exemption from the
registration requirements of the Securities Act. As part of the
transaction, the company will file a registration statement with the
Securities and Exchange Commission for purposes of registering the resale
of the shares of common stock issuable upon conversion of the convertible
senior secured notes to be sold in the private placement.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities
laws of any such states. Any offering of Midwest Express Holdings, Inc.
common stock under the resale registration statement will be made only by
means of a prospectus.
Midwest Airlines features nonstop jet service to major destinations
throughout the United States. Skyway Airlines, Inc.—its wholly owned
subsidiary—operates Midwest Connect, which offers connections to
Midwest Airlines as well as point-to-point service between select markets
on regional jet and turboprop aircraft. Together, the airlines offer
service to 50 cities. More information is available at
http://www.midwestairlines.com/ .
This document contains forward-looking statements that may state the
company`s or management`s intentions, hopes, beliefs, expectations or
predictions for the future. Words such as “expect,” “anticipate,”
“believe,” “estimate,” “goal,” “objective” or similar words are intended
to identify forward-looking statements. It is important to note that the
company`s actual results could differ materially from those projected
results due to factors that include but are not limited to uncertainties
related to general economic factors, industry conditions, scheduling
developments, government regulations, labor relations, aircraft
maintenance and refurbishment schedules, potential delays related to
acquired aircraft, fuel costs, competitive developments, interest rates,
terrorist attacks or fear of terrorist attacks.

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