Tentative Agreement Reached with Continental

February 28, 2005

Continental Airlines reached tentative agreements today with unions representing the aviation maintenance technicians (AMTs) and related, pilots, and flight attendants on issues related to productivity, cost and employee protections. These agreements will be voted on during March.

Goals set by the Teamsters Union and its AMT bargaining committee included offsetting company savings with greater security and opportunity for our members. These security aspects addressed issues with the CARP, health insurance caps, certain protections (should there be a bankruptcy at a future date), furlough protection, stock options, profit sharing and wage escalators. We feel that progress was made in these areas.

Although no one likes bargaining in this financial climate, we achieved certain objectives that provide you with future security. This security was lacking in other industry contracts that consequently resulted in excessive job loss or loss of collective bargaining agreements altogether. We feel that this approach is far more professional and helps protect the quality of life of you and your family.

In the next week or two, a package will be mailed to each member explaining the tentative agreement and providing you with an opportunity to vote on the tentative agreement.

We thank you and other members for their patience while this difficult negotiation was being accomplished.