CONTINENTAL MICRONESIA REACHES TENTATIVE CONTRACT AGREEMENT WITH FLIGHT ATTENDANTS

Continental Micronesia, the Asia/Pacific subsidiary of Continental Airlines (NYSE: CAL), and the International Association of Machinists and Aerospace Workers (IAM) jointly announced today that they have reached a tentative agreement for a new collective bargaining agreement with Continental Micronesia's 350 flight attendants, represented by the IAM. The proposed contract will run until June 2005 and contains significant improvements in pay, benefits and work rules.

"This contract agreement is a win-win for the company and the flight attendants," said Bill Meehan, President of Continental Micronesia. "The terms allow Continental Micronesia to continue to be a competitive force in its markets, while delivering to our flight attendants the rewards they deserve for providing industry-leading service to our customers."

Meehan pointed to Continental's ability to reach agreements without the divisive rhetoric or anti-consumer job actions so commonly occurring these days at other carriers.

"We're pleased that we have achieved this agreement by working together with the company and we will be recommending to our members that they ratify this tentative agreement," said William O'Driscoll, the union's chief negotiator.

The parties will not release specific contract terms pending communication of the information to the flight attendants.