Kansas City, MO—Vanguard Airlines, Inc. (OTC Bulletin Board: VNGD) today announced the Company’s stockholders approved a one-for-five reverse split of the company’s common stock at the company’s annual meeting of stockholders, held today. The one-for-five reverse split will be effective on May 31, 2002.

The common stock will continue to trade on the OTC Bulletin Board on a pre-split basis under the symbol “VNGD” until May 31, 2002, when the common stock will commence trading on a post-split basis under the symbol “VGDA.”

Transmittal forms and instructions will be mailed to each stockholder of record for use in exchanging pre-split stock certificates for post-split stock certificates.

Stockholders should not surrender their pre-split stock certificates prior to receiving a transmittal letter. Each stockholder who surrenders certificates will receive new certificates evidencing the number of shares of common stock resulting from the reverse stock split. Stockholders will not be required to pay any transfer fee or other fee in connection with the exchange of certificates.

Separately, Vanguard announced that it had completed a $1.5 million financing, realizing $1.46 million of net proceeds from the sale of $1.5 million principal amount of secured demand notes indirectly convertible into common stock at an effective price of $0.15751 per share. The holders of the notes were also granted certain preferential rights to participate in any subsequent Vanguard financing through at least May 17, 2003.

Vanguard Airlines, Kansas City’s Hometown Airline, provides convenient all-jet service to 18 cities nationwide, including Seattle beginning June 3. The airline offers low fares with no advance-purchase requirements, advanced seat assignment and extra legroom on all flights with a fleet of nine Boeing MD-80-series aircraft featuring SkyBox? Business Class service and four Boeing 737s. For more information or to make reservations online, visit Vanguard’s Web site at www.flyvanguard.com.

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