Kansas City, MO—Vanguard Airlines, Inc. (OTC Bulletin Board: VNGD) today announced that the Company has submitted a revised application for federal loan guarantee assistance under the Air Transportation Safety and System Stabilization Act. The revisions were made after discussions with representatives of the Air Transportation Stabilization Board (ATSB).

In the revised application, Vanguard has requested a $13.5 million guarantee of a total loan of $15 million. “We reduced our requested guarantee commensurate with what we believe are the current needs of the airline and our prospects for obtaining further investment from private sources,” said Scott Dickson, CEO and President of Vanguard Airlines. “The size of the requested guarantee is small compared to the amount of annual savings we provide the American public and the benefit we bring in stimulating a competitive industry.

“We believe our application is in direct fulfillment of the intention of the Air Transportation Safety and System Stabilization Act to ensure a viable and competitive airline industry for all Americans. We believe there is no airline that is more deserving of this assistance than Vanguard, an airline that offers consumers affordable air fares, an airline that has stimulated competitive service, an airline whose results are improving - not declining in 2002, and an airline that lost financing directly as a result of September 11. Despite the general recession in the industry, Vanguard, unlike most carriers, has continued to produce significant year-over-year increases in key metrics such as load factor and yield demonstrating clear demand for its product among consumers. Since September 11, Vanguard has added capacity and launched service in three new markets including Ft. Lauderdale and Orlando, Fla., and Colorado Springs, Colo. In June, Vanguard will also add Seattle to its route structure.”

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 six Boeing 737s and eight Boeing MD-80-series aircraft, which feature SkyBox? Business Class service. For more information or to make reservations online, visit Vanguard’s Web site at www.flyvanguard.com.

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements are made based on management’s belief, as well as assumptions made by, and information currently available to, management pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Without limitation, there can be no assurance that Vanguard will obtain new financing with or without federal assistance or that Vanguard will successfully restructure. Further information on risks and uncertainties that could affect the Company’s financial results are included in the Company’s filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2001, and in subsequent filings with the Securities and Exchange Commission.

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