CONTINENTAL AVERTS 3,500 EMPLOYEE FURLOUGHS THROUGH VOLUNTARY LEAVE PROGRAMS

Continental Airlines today announced it expects to prevent approximately 3,500 furloughs due to the continued success of the company's voluntary employee leave and early retirement programs. The number of employees who have opted for the Company Offered Leave of Absence (COLA) and early retirement programs is equal to approximately 30 percent of the estimated 12,000 furloughs originally announced by Continental in September.

Continental introduced its COLA program in an effort to avert as many employee furloughs as possible after announcing that the company would reduce systemwide capacity by 20 percent and would furlough employees due to the schedule reduction.

"It is rewarding to see so many employees participate in programs that preserve the jobs of co-workers and support Continental through a period of industry crisis and recovery," said Gordon Bethune, Continental's chairman and chief executive officer. "While these programs do not make our remaining furloughs any less painful, they have substantially reduced their number."

OLA volunteers may accept full-time work elsewhere while continuing to receive benefits during an unpaid leave of up to one year. Benefits include the option to continue insurance benefits at company rates, continuing travel privileges and credit for time on COLA toward company seniority and the employee retirement program.

In addition to COLA participants, a smaller number of eligible employees elected to take retirement packages. Continental also said a series of outplacement seminars/workshops sponsored by the company drew a total of more than 2,500 employees in cities including Houston, Cleveland, Newark, Denver and Los Angeles. The company is continuing to work closely with state agencies, outplacement firms and hiring authorities from more than 250 companies to assist with placement of furloughed employees.

Continental Airlines is the fifth largest airline in the U.S., offering more than 1,900 departures daily to 122 domestic and 89 international destinations. Operating hubs in Newark, Houston, Cleveland and Guam, Continental serves more international cities than any other U.S. carrier, including extensive service throughout the Americas, Europe and Asia.