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News Release

New Continental Airlines Plan Lifts Baggage Limits on Select Latin American Flights

HOUSTON, July 1, 1998 -- Continental Airlines (NYSE: CAI.A and CAI.B) announced today a new summer baggage promotion that eliminates restrictions on the number of bags passengers can take to select Latin American destinations.

From July 15 - Sept. 30, Continental will accept unlimited excess baggage, for a fee, from any city in the USA to San Salvador, El Salvador, Managua, Nicaragua, Lima, Peru, and Santo Domingo, Dominican Republic. Excess bags will arrive at the San Salvador, Santo Domingo and Managua destinations within 72 hours of baggage check-in and to Lima within 96 hours.

"Summer is a peak travel time for our Latin American passengers and U.S. residents visiting Latin America," said Pete Garcia, staff vice president, Latin America for Continental Airlines. "Passengers naturally want to take gifts home to family and friends. We hope this promotion will be a happy medium between safety and comfort, and accommodating passengers' baggageneeds."

Passengers must check their baggage on their day of departure. However, passengers whose flights originate in Newark and Houston only have the option of pre-checking their excess baggage between three and five days in advance so the bags will be waiting at the destination when they arrive.

Excess baggage must not exceed size and weight restrictions of: 100-lb. weight limit and 115 inches around the perimeter, per bag. Costs for excess baggage will be determined by weight and size. If excess baggage exceeds permitted size and/or weight limits the items will need to be shipped via cargo. All qualifying travel for the summer baggage promotion must be on Continental Airlines.

Passengers still may take one carry-on and two checked bags with them without charge. Free-allowance checked baggage must not exceed weight restrictions of 70-lb. per bag and size limitations of 62 inches.

Excess bags will be stored in a secure place both at the originating airport and destination. When bags have arrived at the passenger's destination, the owner must personally pick them up at the airport upon confirmation of their arrival and clear them through Customs. If the bags are not claimed at the destination within five days of arrival, they will be returned to Continental's Houston office. Passengers are responsible for calling local Continental offices within three days of sending their bags to ascertain whether they have arrived.

Baggage capacity on U.S.-to-Latin America flights has been limited during peak season in the past because of airplane weight restrictions.

From time to time Continental has allowed excess baggage; however, passengers could not always be sure of the time it would take for their bags to arrive. This new excess baggage promotion could change the way Continental passengers travel to Latin America.

For more information on Continental Airlines' summer baggage promotion to Latin America, call your travel agent or the Continental reservations desk at 1-800-525-0280.