News Release

In order to accommodate travelers' carry-on bags this summer, Continental's new 737-700 and 737-800 aircraft are equipped with overhead storage bins that can safely hold four roll-on bags when they are stored transversely, which is a full bag more than the old-style bins. Additionally, Continental plans to increase the size of the storage bins on its 737-300, 737-500 and 757 aircraft to accommodate customers' carry-on bags.

With inflight comfort in mind, Continental's new-generation Boeing 737 aircraft feature the latest airplane seats, complete with fully adjustable headrests in First and Coach class. Furthermore, Continental has recently completed a seat upgrade throughout its MD-80 fleet, adding adjustable headrests in both classes of service. The airline is in the process of replacing the First Class seats on its 737-300 aircraft to match the new-generation aircraft's comfortable, adjustable headrests and lumbar support.

Menu enhancements are taking place in BusinessFirst, including new main courses based on recipes from Continental's own Congress of Chefs. For instance, Chef Robert Cordua of Americas and Churrascos restaurants in Houston has supplied his secrets for Mixed Grill, consisting of a lamb chop with fried shallots, medallion of veal with Amazon sauce and beef medallion with Chimichurri butter.

Each month new seasonal specialties will be offered to BusinessFirst customers, such as June's fresh strawberries and cream on flights departing the U.S., and fresh white asparagus with Hollandaise on Germany departures.

To help eliminate some of the hassles associated with paper tickets, over the next several months, Continental is expanding electronic ticketing (E-Ticket) to international destinations. The carrier first began offering E-Ticket travel between the U.S. and Panama City on May 11 and now allows E-Tickets on all U.S.-Mexico routes. Throughout the summer, Continental will expand international electronic ticketing to destinations throughout Latin America, Europe and the Caribbean. Nearly 40 percent of Continental passengers use E-Tickets when they travel.

Separately, CO.O.L. Travel Assistant customers will receive a lot more than just tickets when they purchase online. For a limited time, as an extra bonus to Continental's current 1,000 OnePass bonus mile offer, first time users will also get a $15 Electronic Gift Certificate good towards the purchase of any merchandise sold through SkyMall.

Travelers who prefer to wait for connecting flights in a quieter environment will find that Continental has renovated many of its Presidents Clubs and opened new locations over the past several months. This summer six new airport clubrooms will open throughout Continental's system, including: a 10,000-square-foot clubroom in Cleveland Hopkins International Airport, Terminal C (opened May 15); a 6,700 square-foot clubroom in Terminal B in Houston on June 15; a second 10,000-square-foot clubroom in the southside of Terminal C in Houston on July 31; a 3,500-square-foot, two-level clubroom adjacent to the Continental gates at the Dallas/Ft. Worth Airport on July 6; and a new Presidents Club at Washington National Airport located in the main terminal on July 24.

Finally, Continental plans to expand internationally by opening a Presidents Club in Mexico City near the end of the summer.

Continental has developed an interdepartmental task force to meet the needs of customers with disabilities. Already the carrier has redesigned its aisle chairs for easier transfers to and from wheelchairs and aircraft seats, and added more than 200 wheelchairs and electric carts in its busiest airports. Continental also has implemented aggressive training programs to help personnel assist customers with disabilities, increased the availability of onboard medical oxygen and produced Braille safety cards. This summer, Continental is adding to its Website at http://www.flycontinental.com more detailed information to help customers with disabilities make travel plans.

Continental is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 122 domestic and 70 international destinations. Operating major hubs in Newark, Houston, Cleveland and Guam, Continental is strategically positioned for TransContinental travel, and offers extensive service to Latin America and Europe via its Houston and Newark gateways. Continental has entered into a strategic global alliance with Northwest Airlines that will result in interconnection of the two airlines' route systems, code-sharing arrangements, frequent flier reciprocity, cooperation between Continental and Northwest's trans-Atlantic partner KLM, and other cooperative activities, subject to government approval.

The Continental OnePass frequent flyer program was named 1997 Program of the Year and Best Elite-Level Program, as well as having Best Overall Customer Service, Best Program Newsletter and Best Website in InsideFlyer's annual Freddie Awards. In addition, Continental was named 1996 "Airline of the Year" by Air Transport World and was rated as having the best business class product among U.S. carriers by both Entrepreneur and Smart Money magazines.