Continental Airlines Reaches Tentative Agreements on New Contracts With Pilots, Flight Attendants, Mechanics and Dispatchers HOUSTON, Feb 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Continental Airlines (NYSE: CAL) today issued the following bulletin to its employees announcing that it has reached tentative agreements with its union groups: Continental today announced it has reached tentative agreements on new contracts covering the company's pilots, flight attendants, mechanics and dispatchers following negotiations with the Air Line Pilots Association International, the International Association of Machinists and Aerospace Workers, the International Brotherhood of Teamsters, and the Transport Workers Union. Each of the unions is preparing detailed communications to its membership to explain the agreements, which are subject to union leadership approvals and ratification by each covered work group. The tentative agreements covering pilots and flight attendants are subject to internal union approval processes before submission of the agreements for pilot and flight attendant ratification. The company is not releasing details of the agreements in order to allow the unions to directly communicate with their members. Results of the ratification process for each of the agreements are expected by the end of March 2005. The company expects the wage and benefit reductions for all employees to become effective at the end of March. Wage and benefit reductions for airport, cargo, reservations, Chelsea food services, management and clerical employees were scheduled to take effect today. However, these reductions will be deferred until the end of March to coincide with other work groups' reductions. The company's officers and its board of directors will implement their reductions on Feb. 28. Ratification of the agreements will put Continental on a path for success, with the ability to grow its network and the potential to achieve consistent profitability. "I want to thank the unions' leadership and negotiating teams for working tirelessly through this process," Chairman and Chief Executive Officer Larry Kellner said. "I know a reduction in pay and benefits is painful. However, these agreements, along with the reductions from the rest of our work groups, will put in place the tools we need to be successful and grow our company, securing the careers and retirement of all Continental employees. We will all continue to work together to deliver a strong future for Continental and its people." Because of Continental's success in reaching these tentative agreements by Feb. 28, The Boeing Company and Continental have agreed to extend for one month the period for board approval of their previously announced aircraft acquisition agreement, allowing time for ratification of these tentative agreements. The aircraft acquisition agreement will permit the company to grow by leasing eight 757-300 aircraft starting this summer, accelerating delivery of six Boeing 737-800 aircraft into 2006, and acquiring Roger EWROPS