ACAI Atlantic Coast Airlines Holdings (MM)

Independence Air Airbus Fleet Continues to Grow With Agreement to Acquire 28th Airbus A319 Airbus Service From Washington Dulles to Begin in November DULLES, Va., July 29 /PRNewswire-FirstCall/ -- Atlantic Coast Airlines Holdings, Inc. (NASDAQ:ACAI) and Independence Air today announced the acquisition of one additional 132-passenger Airbus A319 aircraft, for a total of 28 firm Airbus orders to date. This aircraft will be acquired directly from Airbus and is scheduled to be delivered in March 2006, bringing the total Independence Air fleet to 115 jet aircraft. (Logo: http://www.newscom.com/cgi-bin/prnh/20031119/DCW018LOGO-a ) A total of four A319s are scheduled to arrive this year, 18 in 2005 and the remaining six in the first quarter of 2006. The first two Airbus A319s will begin service from Independence Air's hub at Washington Dulles International Airport in November of this year. The company has said it plans to use the A319s to add service to many destinations in Florida and the West Coast. The first two of these destinations will be announced in mid-August. Independence Air Chairman and CEO Kerry Skeen said, "We're thankful for the enthusiastic response we've been getting from people who are taking advantage of all the low-fare service we're adding this summer in Washington, but that's really just the beginning. Once we start flying the Airbus planes this fall, Independence Air will become a coast-to-coast low-fare airline, and we'll be offering more flights to many more great destinations, making it fast, easy and less expensive to fly all across America." The all-new Airbus A319s will be configured with all-leather interiors in a comfortable single class configuration. Independence Air will have live satellite TV in every seatback of its Airbus aircraft by next spring. Independence Air began its inaugural low-fare service on June 16th and is in the midst of the largest-ever launch of new service in airline history -- with a total of 35 new destinations coming online by September 1. By that time, the airline will offer a schedule of more than 600 daily departures, and its operation at Washington Dulles will be the largest low-fare hub in America in terms of total departures. For more information about parent company Atlantic Coast Airlines Holdings, Inc., please visit our website at http://www.atlanticcoast.com/. For more information about Independence Air, please visit http://www.flyi.com/. Statements in this press release and by company executives regarding its implementation of new business strategies, as well as regarding operations, earnings, revenues and costs, include forward-looking information. A number of risks and uncertainties exist which could cause actual results to differ materially from these projected results. Such risks and uncertainties include, among others: the ability of the Company to implement its transition out of the United Express and Delta Connection programs; the ability to effectively implement its low-fare business strategy utilizing regional jets and Airbus aircraft, and to compete effectively as a low-fare carrier, including passenger response to the Company's new service, and the response of competitors with respect to service levels and fares in markets served by the Company; the effects of high fuel prices on the Company; the ability of government agencies involved in airport operations to handle the increased number of flights and passengers anticipated at Washington Dulles without interference with airline operations; the ability to complete the acquisition of, obtain certification for, and secure financing of, its Airbus aircraft, and to successfully integrate these aircraft into its fleet; the ability to implement its assignment to Delta or others the leases of the 328JET aircraft currently used in the Company's Delta Connection operations; the possibility that the Company will remain obligated under the leases for 328JET aircraft currently used in the Delta Connection operations anticipated to be assigned to Delta, and would be obligated to fulfill these obligations should Delta default at any time prior to the expiration of the leases; unexpected costs or procedural complications arising from the insolvency of Fairchild Dornier GmbH, the manufacturer and equity owner of the 328JETs; the ability to successfully remarket the J-41 aircraft; the ability to successfully hire and train employees in sufficient numbers to implement the transition; the ability to reach agreement with AMFA and AFA-CWA on mutually satisfactory contracts; and general economic and industry conditions, any of which may impact the Company, its aircraft manufacturers and its other suppliers in ways that the Company is not currently able to predict. Certain of these and other risk factors are more fully disclosed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and in its Quarterly Report on Form 10-Q for the period ended March 31, 2004. These statements are made as of July 28, 2004 and Atlantic Coast Airlines Holdings, Inc. undertakes no obligation to update any such forward-looking information, including as a result of any new information, future events, changed expectations or otherwise. http://www.newscom.com/cgi-bin/prnh/20031119/DCW018LOGO-a http://photoarchive.ap.org/ DATASOURCE: Independence Air CONTACT: Rick DeLisi, Director, Corporate Communications of Independence Air and Atlantic Coast Airlines Holdings, Inc., +1-703-650-6019 Web site: http://www.atlanticcoast.com/ http://www.flyi.com/

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