Kansas City, MO - Vanguard Airlines, Inc. (NasdaqSC: VNGD) today announced it received notice that Nasdaq has scheduled a hearing on December 19, 2000, to review its continued listing on the Nasdaq SmallCap Market. The Company currently fails to comply with the net tangible assets / market capitalization / net income requirement, as set forth in Nasdaq Marketplace Rule 4310(c)(02)(B).

Vanguard indicated that it will seek an extension from Nasdaq to meet the minimum requirements for continued listing on the Nasdaq SmallCap Market. The Company intends to pursue various alternatives to satisfy these requirements. Should these requirements not be satisfied before the soon-to-be scheduled hearing, or should Nasdaq fail to grant a further extension of time to allow the Company to become compliant, the Common Stock of Vanguard Airlines would no longer be eligible for listing on the Nasdaq SmallCap Market and would then be eligible to be quoted on the OTC Bulletin Board.

Kansas City-based Vanguard Airlines, which began service in December 1994, is a value-priced, 100 percent ticketless passenger airline. The airline provides convenient, scheduled jet service to thirteen cities: Atlanta, Austin (beginning Jan. 7, 2001), Buffalo/Niagara Falls, Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Los Angeles, Minneapolis/St. Paul, Myrtle Beach, New York-LaGuardia, New Orleans and Pittsburgh. The Company employs approximately 950 full-time equivalent employees and currently operates a fleet of 13 Boeing 737s. For more information on Vanguard, visit the Company’s Web site at www.flyvanguard.com.

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