UAL Updates Proposal for ATSB

UAL Corporation (BULLETIN BOARD: UALAQ) , the holding company whose
primary subsidiary is United Airlines, today filed an update to its
previous proposal to the Air Transportation Stabilization Board (ATSB) for
a federal loan guarantee. As part of its planned exit from Chapter 11
bankruptcy protection, UAL is seeking $2 billion in financing, including a
$1.6 billion federal loan guarantee. JPMorgan and Citigroup have each
agreed to underwrite $200 million of the non- guaranteed portion of the
facility and $800 million of the guaranteed portion, pending approval of a
loan guarantee from the ATSB. The financing is also subject to approval by
the U.S. Bankruptcy Court.
“United`s restructuring plan was designed to create a competitive,
profitable company and to address the concerns raised by the ATSB last
year,” said Glenn F. Tilton, United`s Chairman, President and Chief
Executive Officer. “The business plan we provided to the ATSB today
reflects a substantially stronger company.”

The $1.6 billion federal loan guarantee sought by the Company is $200
million less than the guarantee sought by United last year. The lower
amount reflects an endorsement of the Company`s business plan by the
commercial lending markets. The remaining $400 million (or 20%) of the
facility, which would be provided by the banks without any guarantee by
the federal government, is double the size of the non-guaranteed portion
the company included in its 2002 application.

When the company`s business plan was submitted to the ATSB for review in
2002, the board responded that United must reduce its cost structure,
develop a competitive response to the low cost carriers, ensure that its
financial projections were based on conservative assumptions, and manage
the company`s pension obligations. Today`s filing details the steps United
has taken to squarely address all these issues, as well as the company`s
success in significantly reducing costs and generating revenue while
maintaining operating performance.

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 .