UAL Secures Exit Financing

UAL Corporation (BULLETIN BOARD: UALAQ) , the holding company whose
primary subsidiary is United Airlines, confirmed today that it has reached
formal agreement to secure $2 billion in exit financing with JPMorgan and
Citigroup, marking a major step toward emerging from Chapter 11 bankruptcy
protection. Under the financing plan, JPMorgan and Citigroup will each
underwrite $200 million of the non-guaranteed portion of the facility and
$800 million of the guaranteed portion, which requires the backing of a
loan guarantee from the Air Transportation Stabilization Board (ATSB). The
Company plans to file an update to its previous proposal to the ATSB
shortly. Financing is also subject to approval by the U.S. Bankruptcy
Court.
“The competitive terms of this financing package—especially the
willingness of both banks to include a substantial amount of at-risk
funding—reflect the extraordinary progress United has made this past
year, and the credibility of our plan for the future,” said Glenn F.
Tilton, United`s Chairman and Chief Executive Officer. “We are very
pleased to be working with both banks, and look forward to moving ahead
with them in the exit process and beyond.”

“Obtaining exit financing commitments on a timely basis is a major step
for United,” said Jake Brace, United`s executive vice president and chief
financial officer. “JPMorgan and Citigroup, along with our other
Debtor-in- Possession financing lenders, have gained a deep understanding
of our business and the progress United has made on lowering costs,
enhancing productivity and improving revenue, which led directly to these
exit financing commitments.”

“This is a vastly different company than it was a year ago, and we believe
all the pieces are now in place to enable United to compete effectively,”
said Bill Repko, Managing Director, Head of Restructuring, JPMorgan.
“United has done all the right things to position itself for a successful
exit.”

JPMorgan and Citigroup will serve as the joint lead arrangers and co-
administrative agents for the loan. They will also be joint book runners
with JPMorgan leading the syndication.

“We are extremely pleased to participate in providing financing that
assists United to complete its restructuring,” said Chad Leat, head of
Global Loans and Leveraged Finance Capital Markets. “United has made a
great deal of progress, and we look forward to continuing to work with
them.”

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As part of its restructuring efforts, the company is on track to reduce
its costs by $5 billion annually by 2005, has improved its revenue
performance and has heightened operational results. UAL generated an
operating profit of $19 million in the third quarter 2003, the first time
it has shown an operating profit since the second quarter of 2000.

United and United Express operate more than 3,400 flights a day on a route
network that spans the globe. News releases and other information about
United may be found at the company`s website at http://www.united.com/ .

Safe Harbor Statement. Certain information contained in this press release
should be considered “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
reflect UAL Corporation`s current expectations and beliefs with respect to
certain current and future events and financial performance. Such
forward-looking statements are and will be, as the case may be, subject to
many risks and uncertainties relating to the operations and business
environments of UAL Corporation and its subsidiaries (collectively, the
“company”) that may cause the actual results of the company to differ
materially from any future results expressed or implied in such
forward-looking statements. Such factors include, but are not limited to,
the following: the company`s ability to continue as a going concern; the
company`s ability to operate pursuant to the terms of its debtor-
in-possession facility; the company`s ability to obtain court approval
with respect to motions in the Chapter 11 proceeding prosecuted by it from
time to time; the company`s ability to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the Chapter
11 process; risks associated with third parties seeking and obtaining
court approval to terminate or shorten the exclusive period for the
company to propose and confirm one or more plans of reorganization, for
the appointment of a Chapter 11 trustee or to convert the cases to Chapter
7 cases; the potential adverse impact of the Chapter 11 cases on the
company`s liquidity or results of operations; the cost and availability of
financing; the company`s ability to execute its business plan; the
company`s ability to attract, motivate and/or retain key employees; the
company`s ability to attract and retain customers; demand for
transportation in the markets in which the company operates; general
economic conditions; the effects of any hostilities or act of war or any
terrorist attack; the ability of other air carriers with whom the company
has alliances or partnerships to provide the services contemplated by the
respective arrangements with such carriers; the cost and availability of
aircraft insurance; the cost of aviation fuel; the cost associated with
security measures and practices; competitive pressures on pricing
(particularly from lower-cost competitors); government legislation and
regulation; and other risks and uncertainties set forth from time to time
in UAL Corporation`s reports to the United States Securities and Exchange
Commission. Consequently, the forward-looking statements should not be
regarded as representations or warranties by the company that such matters
will be realized. The company disclaims any intent or obligation to update
or alter any of the forward-looking statements, whether in response to new
information, unforeseen events, changed circumstances or otherwise. United editorial, based on news release distributed by PR Newswire.


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