CONTINENTAL EXPECTS TO AVERT OVER 1,000 FURLOUGHS; SEVERANCE COSTS TOTAL OVER $60 MILLION

Continental Airlines (NYSE: CAL) today confirmed that it expects to avert over 1,000 furloughs through its voluntary Company Offered Leave of Absence (COLA) program. The company also confirmed that, as part of last week's furlough, it provided severance packages to furloughed employees and honored all severance and furlough pay provisions contained in its work rules and collective bargaining agreements, with a total cost estimated at more than $60 million. It also said that all of its employees, including management, are sharing in the financial pain of the industry downturn through a lack of profit sharing and incentive compensation.

In an effort to reduce as many employee furloughs as possible, Continental introduced its COLA program. The COLA encourages voluntary leaves of absence for non-management employees and allows them to 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 for company seniority and the employee retirement program. The company also has offered an Early Out program for eligible U.S.-based employees system-wide. In connection with last week's furlough, the company provided severance packages to furloughed employees while honoring all severance and furlough pay provisions contained in its work rules and collective bargaining agreements. The cost is estimated to be over $60 million. "This furlough was one of the most painful events we have had to experience," said Gordon Bethune, chairman and chief executive officer. "We believe that employees should always be treated with dignity and respect, especially when we are forced to make these tough decisions."

All Continental employees, including management, are sharing in the financial pain of the industry downturn. Profit sharing, which has paid out over $545 million to employees over the past six years, will not be paid this year. Management compensation will be dramatically reduced for 2001, since it is primarily based on performance bonuses and incentives. In addition, management stock options have become worthless. As a result of this widespread financial pain, Continental is not asking any of its employees for pay cuts. Continental believes that this policy will allow its remaining workforce to be more effective in doing the hard work required by this crisis.

Continental also is providing continuing job placement, including a series of outplacement seminars/workshops for displaced co-workers in numerous cities, including Houston, Cleveland, Newark, Denver and Los Angeles. Continental is also working closely with representatives of many state agencies and hiring authorities from local companies who have expressed interest in interviewing employees. Continental Human Resources representatives are available at all outplacement events to assist with benefits, resume preparation and interviewing tips.

Prior to Sept. 11, Continental was one of only two major domestic airlines reporting profits in the first half of the year, and was profitable in July and August.