CONTINENTAL EXPRESS ANNOUNCES NEW SERVICE BETWEEN LEXINGTON AND HOUSTON

Lexington, KY - Continental Express, the regional airline subsidiary of Continental Airlines today announced it will begin twice-daily nonstop service between Lexington and its Houston hub, effective October 1, 2001.

"We are grateful to the community of Lexington for its tremendous support of this service," said Jim Ream, president of Continental Express. "At our Houston hub, customers from Lexington will be able to make convenient connections to cities throughout the South, the West, Latin America and Asia."

Continental Express will operate the service using the fast, quiet, 50-passenger Embraer ERJ-145 Express Jet.

Continental Express also announced today that, effective August 1, flights between Lexington and Continental's Cleveland hub will be operated by the 37-passenger Embraer ERJ-135 Express Jet, allowing jet-to-jet connections to cities throughout the Northeast, Midwest and Canada. The Express Jet offers greater capacity, a quieter, smoother ride and reduced flight time than the turboprop aircraft it will replace. Additionally, Continental Express is expanding ticket counter space in Lexington and installing a passenger loading bridge allowing indoor access from the terminal to the airplane.

"With today's announcements, Continental Express will offer Central and Eastern Kentucky travelers the first nonstop flights between Lexington and Houston, Blue Grass Airport's eleventh nonstop destination, and all-jet access to two major international gateways, said Michael Gobb, executive director of Blue Grass Airport. "We applaud Continental's significant investment in Lexington."

Continental Express serves more than 7.8 million customers annually. As a regional air carrier to Continental Airlines, Express offers more than 1,000 daily departures to 110 cities from its hubs in Cleveland, Houston and New York. Continental Express offers advanced seat assignments and OnePass frequent flyer miles, which can be redeemed anywhere in the world Continental and its partner airlines fly.