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CONTINENTAL AIRLINES TO INVEST IN ENHANCED BUSINESSFIRST PRODUCT

Continental Airlines (NYSE: CAL) today announced details of its investment in a specially engineered seat for its BusinessFirst cabin. The airline will begin installing the enhanced seats on all of its Boeing 777 aircraft that serve transatlantic and transpacific routes in April. 

"While other carriers have cut costs by eliminating cabin comforts, Continental continues to invest in our product to make flying more comfortable for our customers," said Larry Kellner, president, Continental Airlines. "Our investment in new BusinessFirst seats is consistent with our long-term strategy to attract and retain lucrative business travelers by providing a high quality product and superior customer service."  

Since 9/11, Continental was the only major U.S. carrier to fully maintain meal service and other amenities such as inflight entertainment, blankets, pillows and magazine on its flights. 

Unveiled at a Corporate Advisory Board meeting, a group that represents nearly fifty corporate accounts, the new seats are the centerpiece of Continental's premium BusinessFirst cabin service that provides the extra space and fine amenities of traditional international first class service at a business class price. 

Specially engineered seat design

Continental's new BusinessFirst seats feature several significant design improvements that provide more comfort for customers. The new seat is the widest business class seat in the world measuring 22 inches between the armrests, an increase of one inch per seat over Continental's existing BusinessFirst seat. The seats offer a deeper recline, measuring 170 degrees from seat cushion to seat back, and provide 6 ˝ feet (2 meters) of sleeping space in the fully extended position. Electronic "one-touch" controls enable customers to quickly move the seats to pre-set upright, cradle and fully extended sleep positions, and additional controls allow customers to adjust the seat back, lumbar support, leg and foot rests in an infinite number of comfortable positions. 

Other improvements include the addition of privacy hoods and large seat side wings for better privacy, individual dual level reading lights and more storage space for personal items. The new BusinessFirst seats also have adjustable winged headrests, power ports for laptop personal computers and personal multi-channel entertainment systems and satellite telephones. 

In Development Nearly Two Years

Continental's on board product marketing group began researching new seat options in Spring 2000 when the idea of replacing the BusinessFirst seats first surfaced. The airline visited with five seat manufacturers based in four countries before purchasing the more than 800 seats from Koito Industries Ltd. of Yokohama, Japan. Concurrently, Continental conducted focus groups with key business customers to determine the needs of travelers and worked closely with the airline's engineering group and the seat manufacturer to re-design the new seat accordingly. The number one request from customers was to increase seat width and improve sleep comfort -- a test that Continental executives further evaluated during a scheduled overnight sleepover at the company's headquarters in Houston. 

The seats will be installed at Continental's new maintenance hangar at Newark International Airport. The process takes an average of three days to complete per aircraft, with total project completion targeted for the fourth quarter. While initial plans are to install the new BusinessFirst seats in its Boeing 777 aircraft, the seats were specially designed to be compatible with other aircraft in Continental's fleet including the Boeing 767 and 757. 

BusinessFirst -- More Than Just Seats 

The award winning BusinessFirst service also features extensive gourmet menu selections created by Continental's Congress of Chefs, premium wines and champagne, and International Concierge Service that provides individualized pre- and post-flight services for BusinessFirst customers at 21 key international airports. Customers traveling in BusinessFirst may also access any of Continental's 27 President Clubs and more than 50 airline affiliated lounges worldwide.

The investment in new seats further distances Continental Airlines already award-winning BusinessFirst product from other carriers in the industry. In 2001, the Official Airline Guide awarded Continental the Best Long Haul Executive/Business Class in its 2001 Airlines of the Year Awards, and Condé Nast Traveler magazine rated Continental's premium BusinessFirst service the highest among all U.S. carriers for transatlantic and transpacific flights in its fourth annual survey of business travelers. Continental also received awards for its BusinessFirst cabin from Entrepreneur and SmartMoney magazines.

Continental currently operates the Boeing 777 on routes between Newark and Frankfurt (Germany), Manchester (England), Tokyo/Narita (Japan), London/Gatwick (England), Tel Aviv (Israel), Hong Kong and Paris (France), and between Houston and Narita, London/Gatwick and Paris.  Continental Airlines is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 126 domestic and 89 international destinations. Operating hubs in New York, Houston, Cleveland and Guam, Continental serves more international cities than any other U.S. carrier, including extensive service throughout the Americas, Europe and Asia.