CONTINENTAL AIRLINES CHAIRMAN AND CEO TO FLY THE COMPANY'S FIRST BOEING 767-400ER FROM THE FACTORY; AIRLINE CONTINUES WITH INDUSTRY'S YOUNGEST JET FLEET

When Continental Airlines (NYSE: CAL and CAL.A) takes delivery of its first Boeing 767-400ER (extended range) aircraft this Thursday, it will be piloted to Houston by the airline's chairman and CEO, Gordon Bethune, a licensed commercial jet pilot and aircraft mechanic.

Continental is acquiring 26 of these jets, four of which will be delivered this year. The remainder will enter the fleet between 2001 and 2005, replacing retiring DC-10s on routes to Europe and Latin America.

As part of an on-going fleet modernization plan, Continental has retired 119 aircraft since the end of 1996 and reduced the number of aircraft types from eight to six. The airline's average jet fleet age is 7.4 years - the lowest in the nation.

"The all new B767-400ER will greatly enhance the comfort and efficiency of our long range fleet," said Bethune. "Our customers will enjoy a new space age cabin with every amenity."

Continental's new B767-400ER will be placed into revenue service on Sept. 14. Initially, it will fly two domestic round trips daily between Newark and Orlando for two weeks, before beginning international service on Oct. 1 between Newark and Rio de Janeiro. As other B767-400ERs come on line, they will be used on routes to Paris and London from Newark.

The B767-400ER is the newest derivative of the Boeing 767 family, 21 feet longer than previous models and provides capacity for 235 passengers: 35 in BusinessFirst and 200 in coach. The two-class seating configuration, consisting of 2-1-2 in BusinessFirst and 2-3-2 in coach, is designed to give nearly every customer a window or an aisle seat, contributing to a more spacious, comfortable ride. The aircraft can fly up to 6,200 statute miles nonstop, making it an ideal replacement for the similarly sized, but less efficient DC10-30.

Cabin design and amenities on the B767-400ER are similar to the acclaimed B777-200ER. Every seat has an individual video monitor and satellite telephone. The aircraft is equipped with oversized overhead storage bins, adjustable winged headrests, laptop computer power ports at every seat in BusinessFirst and select rows in coach, an espresso machine and eight lavatories: three in front and five in the main cabin, including one wheelchair accessible lavatory for customers with disabilities.

In addition to the 400ER, Continental has ordered ten 174-seat 767-200ERs, with options for 11 more. Three B767-200ERs will be delivered this year; the first in November. That aircraft will be used on routes from Newark to Zurich, starting Dec. 1, and Houston to Sao Paulo, starting Dec. 14.

Continental Airlines is the fifth largest airline in the U.S., offering more than 2,300 departures daily to 138 domestic and 95 international destinations. Operating major hubs in Newark, Houston and Cleveland, Continental (www.continental.com) serves more international cities than any other U.S. carrier, including extensive service throughout the Americas, Europe and Asia.

Continental is in the top quarter of FORTUNE magazine's "100 Best Companies to Work for in America," and is ranked the nation's No. 1 airline in customer satisfaction for long and short-haul flights by Frequent Flyer Magazine and J.D. Power and Associates. Continental has received numerous awards for its BusinessFirst premium cabin (Condé Nast Traveler, OAG, Entrepreneur and SmartMoney magazines), OnePass frequent flyer program (InsideFlyer's Freddie Awards) and overall operations and management (Air Transport World's 1996 Airline of the Year).