UAL Corporation (BULLETIN BOARD: UALAQ) , the holding company whose
primary subsidiary is United Airlines, today notified Mesa Airlines of
United`s decision to end the non-binding memorandum of understanding
between the two companies regarding Mesa`s proposed acquisition of
Atlantic Coast Airlines Holdings, Inc. (ACA), United`s current United
Express contract carrier at Dulles International Airport, Washington, D.C.

Doug Hacker, United`s Executive Vice President - Strategy, said, “Given
the uncertainty surrounding Mesa`s consent solicitation created by the
preliminary injunction issued in federal court on December 18, the
Memorandum of Understanding no longer provides a good basis for the
purposes of United`s ongoing business planning. United remains committed
to our Dulles hub and to continuing to provide reliable, high-quality
service to United Express customers at Dulles and the spoke cities served.
United now will focus only on our other alternatives and continue to move
steadily forward in the best interests of our customers, our employees and
our creditors.”

ACA has made clear that it no longer wants to serve as United`s contract
United Express carrier at Dulles. United has developed a comprehensive
plan to ensure that a full schedule of flights at competitive fares will
continue to be available to United`s customers at Dulles.

Hacker added, “Our discussions with the Metropolitan Washington Airport
Authority concerning our facilities plan have been very positive and are
continuing. As a prudent business matter, we also have completed planning
for the appropriate aircraft and baggage handling capabilities to maintain
United Express service intact at Dulles, should it become necessary.”

United and United Express operate more than 3,300 flights a day on a route
network that spans the globe. News releases and other information about
United can be found at the company`s web site at http://www.united.com/ . United editorial, based on news release distributed by PR Newswire.

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