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Glen Tilton discusses the 3rd Quarter earnings results and the recovery effort.

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Source: Glenn Tilton

Date: Oct 21, 2002

Hi, this is Glenn. As you all know, we've had a very busy week, concluding with the announcement of our disappointing third-quarter earnings on Friday, which present a personal challenge for each of us. Friday's announcement, however, also included details of our progress with the United union coalition. Those talks continued this weekend, and we are focused on attaining very real, and prompt, labor cost reductions of approximately 5.8 billion dollars, over the next five and a half years, which would result in an earnings contribution of more than one billion dollars per year to United's bottom line.

We have also identified a minimum of 1.4 billion dollars of non-labor profit improvement initiatives, elements of which we will begin to implement and announce immediately. As I have said repeatedly on this weekly call, there is no doubt we face perhaps the most challenging time in United's history, and there are many observers and many commentators who publicly express their doubt regarding our progress. Those skeptics aside, one thing is certain. Every step we take toward United's recovery is an important step toward a more competitive and ultimately successful United.

This week is again most critical. We are scheduled to meet with the ATSB to update our loan guarantee application, the United board has its normally scheduled meeting this week, and we continue to press ahead on all fronts, financially and operationally, toward a more competitive and repositioned United.

In closing, please accept my personal thanks for your extraordinary efforts. I had the opportunity to meet with many of you this week to personally express my gratitude, and I look forward to the opportunity to meet many more of you in the days ahead. Thanks for listening, and I'll talk to you soon.

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