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News Release

Continental to Appeal Court Decision

HOUSTON, October 16, 1998 -- Continental Express, Inc. and Continental Airlines, Inc. (NYSE: CAI.A and CAI.B) sharply criticized today's decision by the 48th Judicial District Court of Tarrant County, Texas granting summary judgment to the City of Fort Worth and the DFW Airport Board, prohibiting Continental Express from commencing service between Dallas' Love Field and Cleveland. The decision does not affect Continental Express' service between Love Field and Houston.

Continental Express and Continental Airlines will immediately appeal the local Fort Worth court's decision. A spokesman for Continental Express said, "While we expected this grossly unfair result from Fort Worth's local hometown court, we are nonetheless disappointed that the decision will delay our launch of convenient, competitive air service between Cleveland and Love Field. Fortunately, the Department of Transportation should soon conclude its own proceeding to interpret the federal law governing our proposed service, and we expect the DOT to rule that federal aviation law pre-empts local attempts to prevent competition. Moreover, we will pursue our litigation in federal court, while we also appeal in Texas state courts. Despite the harshly anticompetitive actions of American Airlines, the City of Fort Worth and the DFW Airport Board, we believe we will eventually be able to provide the citizens of the Metroplex with convenient flights from Love Field toCleveland."