CAL joins Star Alliance

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CO issued the following news release today. As you may recall, on April 27,=
 CO announced that our Board of Directors had unanimously voted to support =
management=92s recommendation that, in the current industry environment, th=
e best course for CO is to not merge with another airline. That remains CO=
=92s position today. With the Delta/Northwest merger announcement, we began=
 to evaluate which of the three major global alliances would be best for CO=
 and our co-workers, customers and shareholders over the long term. We have=
 completed that analysis and today announced plans to join United Airlines =
and Lufthansa in the Star Alliance. We believe joining Star will provide su=
bstantial new opportunities for all our co-workers, customers and the commu=
nities we serve.=0A=A0=0ACONTINENTAL AIRLINES AND UNITED AIRLINES ANNOUNCE =
COMPREHENSIVE PLAN FOR GLOBAL COOPERATION; =0ACONTINENTAL PLANS TO JOIN STA=
R ALLIANCE=0A=A0=0ACHICAGO, June 19, 2008 - Continental Airlines (NYSE: CAL=
) and United Airlines (NASDAQ: UAUA) today announced a framework agreement =
to cooperate extensively, linking their networks and services worldwide to =
the benefit of customers, and creating revenue opportunities and cost savin=
gs and other efficiencies. In addition, Continental plans to join United in=
 the Star Alliance, the most comprehensive airline alliance in the world. =
=0A=93Continental's plan to partner with United and join the Star Alliance =
will provide substantial new opportunities for all of our customers,=94 sai=
d Larry Kellner, chairman and CEO of Continental. =93In a network business,=
 there is significant value gained from linking with larger networks to pro=
vide truly national coverage and expanded global reach, and exploring new w=
ays to reduce costs and improve efficiencies. As we experience some of the =
most challenging conditions airlines have ever faced, we look forward to th=
e benefits of a new relationship with United and the other Star Alliance me=
mbers.=94=0ATeams from the two organizations worked intensively over the la=
st several weeks exploring creative solutions for how the two companies cou=
ld achieve efficiencies and synergies that expand beyond the well-establish=
ed benefits of codesharing. Their work focused on plans for significant coo=
peration on frequent flier programs, lounges, facility utilization, informa=
tion technology and procurement. This work was assisted by the efficiency o=
pportunities identified andrelationships developed during the parties' earl=
ier merger discussions.=0A=A0=93The teams worked well together to identify =
opportunities to create a unique and competitive partnership extending well=
 beyond a traditional code share agreement,=94 said Glenn Tilton, chairman,=
 president and CEO of United. =93On behalf of the Star Alliance, I am very =
pleased to invite Continental to join as a member. =A0Continental will brin=
g significant new assets to our global alliance, and our two companies will=
 work together effectively with our partners to provide the best overall ne=
twork in America and the world.=94=0AKellner and Tilton are meeting in Chic=
ago this afternoon to sign a framework agreement outlining the systemwide a=
lliance and cooperation principles between their carriers.=0AAntitrust Immu=
nized Joint Ventures=0AThrough this new partnership, Continental and United=
 plan to establish joint ventures allowing them to cooperate with each othe=
r and with other Star Alliance airlines in international regions and compet=
e more effectively in an increasingly global air travel market. =A0=0AIniti=
ally, Continental will request the U.S. Department of Transportation (DOT) =
to allow it to join United -- along with Lufthansa, Air Canada and six othe=
r carriers -- in their already established antitrust immunized alliance.=A0=
 This will enable Continental, United, Lufthansa, Air Canada and other immu=
nized Star Alliance carriers to work closely together as other antitrust im=
munized alliances do, and to establish trans-Atlantic and other internation=
al joint ventures so they can deliver highly competitive flight schedules, =
fares and service. =A0The planned trans-Atlantic joint venture, in which Co=
ntinental, United, Lufthansa and Air Canada will pool revenue, will permit =
the carriers to compete more effectively with the proposed joint venture in=
volving certain SkyTeam members that was recently granted antitrust immunit=
y. The trans-Atlantic joint venture will combine the strength of the carrie=
rs to create a more efficient and comprehensive trans-Atlantic
 network for the carriers' customers. =0AJoint ventures are also planned fo=
r the Latin America and Asia/Pacific regions, involving Continental, United=
 and other members of the Star Alliance. Both antitrust immunity and code-s=
haring are subject to receipt of approvals from applicable national authori=
ties.=0ADomestic Codesharing and Frequent Flier/Lounge Reciprocity=0AContin=
ental=92s and United=92s route networks are highly complementary, with litt=
le overlap, so they add value to each other and to customers who are planni=
ng domestic and international itineraries. =0AIn the United States domestic=
 market, where antitrust immunity for solely domestic travel would not appl=
y, the two airlines plan to =A0begin broad code-sharing, which facilitates =
the creation of itineraries using both carriers, as well as frequent flier =
program, elite customer recognition and airport lounge reciprocity.=A0 Thes=
e cooperative activities are subject to regulatory notice to applicable aut=
horities and Continental exiting certain of its current alliance relationsh=
ips. Under code-sharing, customers will benefit from a coordinated process =
for reservations/ticketing, check-in, flight connections and baggage transf=
er. =0AFrequent flier reciprocity will allow members of Continental=92s One=
Pass program and United=92s Mileage Plus program to earn miles in their acc=
ounts when flying on either partner airline and redeem awards on both carri=
ers. =A0Travel on either carrier will count toward elite customer recogniti=
on. Similarly, each carrier=92s customers will have access to both Continen=
tal=92s Presidents Club network and United=92s Red Carpet Club network of a=
irport lounges.=0AContinental Joining Star Alliance=0AContinental=92s plans=
 to join the Star Alliance and the other planned cooperation are subject to=
 receipt of certain regulatory and other approvals and the termination of c=
ertain contractual relationships, including Continental's existing agreemen=
ts with SkyTeam members that restrict its participation in another global a=
lliance.=A0 Continental intends to terminate its existing agreements with S=
kyTeam members and obtain the necessary approvals to enter the Star Allianc=
e, although Continental may not be successful, and the time period for doin=
g so may be out of Continental=92s control.=A0 For example, a principal con=
tractual restriction will not terminate until nine months after the closing=
 of the proposed Delta/Northwest merger. Continental intends to transition =
out of SkyTeam and into the Star Alliance in a customer friendly manner.=0A=
Joining the Star Alliance will connect Continental with United and 19 other=
 airlines around the world. Within Star, frequent fliers enjoy reciprocity =
with respect to both mileage accrual and redemption among the member airlin=
es. The airlines also reciprocally recognize elite status, and provide acce=
ss to the worldwide network of lounges operated by the Star Alliance airlin=
es. =0AAbout the Star Alliance=0AThe Star Alliance network was established =
in 1997 as the first truly global airline alliance to offer customers world=
wide reach and a smooth travel experience. Star Alliance received the Air T=
ransport World Market Leadership Award in 2008 and was voted Best Airline A=
lliance by Business Traveller Magazine in 2003, 2006 and 2007 and by Skytra=
x in 2003, 2005 and 2007. The members are Air Canada, Air China, Air New Ze=
aland, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa,=
 Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South Africa=
n Airways, Spanair, SWISS, TAP Portugal, Turkish Airlines, THAI, United and=
 US Airways. Regional member carriers Adria Airways (Slovenia), Blue1 (Finl=
and) and Croatia Airlines enhance the global network. Air India and EgyptAi=
r have been accepted as future members. Overall, the Star Alliance network =
offers nearly 18,000 daily flights to 965 destinations in 162 countries.=0A=
About Continental=0AContinental Airlines provides more than 3,100 flights a=
 day on Continental and Continental Express to more than 280 U.S. and inter=
national destinations from its hubs in New York/Newark, Houston, Cleveland =
and Guam.=A0 Continental is the world's fifth largest airline, with routes =
throughout the Americas, Europe and Asia. With more than 45,000 employees, =
Continental carries approximately 69 million passengers per year. For more =
company information, visit continental.com.=0AAbout United=0AUnited Airline=
s provides more than 3,200 flights a day on United and United Express to mo=
re than 200 U.S. domestic and international destinations from its hubs in L=
os Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key gl=
obal air rights in the Asia-Pacific region, Europe and Latin America, Unite=
d is one of the largest international carriers based in the United States. =
United's 55,000 employees reside in every U.S. state and in many countries =
around the world. News releases and other information about United can be f=
ound at the company's Web site at united.com.=0A###=0A=A0=0AThis press rele=
ase contains forward-looking statements that are not limited to historical =
facts, but reflect the company=92s current beliefs, expectations or intenti=
ons regarding future events. All forward-looking statements involve risks a=
nd uncertainties that could cause actual results to differ materially from =
those in the forward-looking statements.=A0Examples of such risks and uncer=
tainties include receipt of various regulatory approvals, successful negoti=
ation of documents implementing the planned alliances, Continental exiting =
certain of its current alliance relationships, and other approvals. Please =
read Continental=92s current report on Form 8-K filed on June 19, 2008 for =
additional information regarding these risks and uncertainties.=A0 The comp=
any undertakes no obligation to publicly update or revise any forward-looki=
ng statements to reflect events or circumstances that may arise after the d=
ate of this press release, except as required by
 applicable law.

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