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CONTINENTAL AIRLINES DISCONTINUES ALLIANCE DISCUSSIONS WITH US AIRWAYS

3 July 2002

Continental Airlines (NYSE: CAL) today announced that it has discontinued discussions with US Airways regarding the possibility of entering into an alliance agreement that would include codesharing and frequent flyer and airport lounge reciprocity between the two carriers.

Continental made the decision after it determined that an agreement would not be reached in the near future. 

Continental currently has alliance agreements with Northwest Airlines, KLM Royal Dutch Airlines, Copa Airlines, Air Europa, EVA, Air China, Alaska Airlines, Hawaiian Airlines and Amtrak.

Continental Airlines is the fifth largest airline in the U.S., offering more than 2,100 departures daily to 120 domestic and 91 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.

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