Hi, it's Glenn, and I'm joined on the call today by Jake Brace.

Earlier today, we announced that we reached agreement with two major financial institutions to provide the company with 3 billion dollars in exit financing. This is indeed a signal event in United's restructuring.

It reflects just how much we've accomplished together over the past three years... of the radical improvements that we've made in our business -- in costs, in revenue, in service delivery and in product innovation.

This work has not only enabled us to obtain attractive exit financing... it has also positioned the company effectively to go up against the best of our competitors. Now we can focus on winning in the marketplace -- winning for our customers and for our investors.

As I said at the outset, I've asked Jake Brace, our chief financial officer and our chief restructuring officer, to join me on the call to talk about the exit financing and some of the background behind it.

So Jake, over to you.

JAKE:

Thanks, Glenn.

Over the past three years, you've heard me speak a lot about the progress that we've made on the numerous complex issues in our restructuring.

Most of the time, I'm reporting on what we've accomplished through the bankruptcy court and its processes. Today, I'm speaking about what we accomplished in the marketplace -- in the capital markets to be precise -- and the outstanding vote of confidence in United that this exit financing represents.

I'll first talk about how we obtained this financing, then what we have received, and finally why we were able to reach this important point.

Let's start with the HOW.

To help ensure that we obtained the best terms possible, we set up a process at the outset that included participation by our creditors' committee and their advisors.

Initially, we received financing proposals from four leading global financial institutions: JP Morgan Chase, Citibank, Deutsche Bank and GE Capital. Even at that early stage, we were very pleased with the scope and the terms of the offers.

We worked extensively with each institution over the past month on ways to make their offers even better from United's perspective. It was a very positive sign when it became clear that the banks were going to compete vigorously to win our business.

The competition among the banks continued right up until the point when we made our decision. In the end, the decision was a difficult one to make, since each institution made very compelling and attractive proposals to us.

So now let me tell you WHAT we have obtained.

We have arranged a 3 billion dollar, all-debt exit financing package. It's worth pausing on the all-debt aspect. Typical exit financing for airlines includes a substantial slug of equity capital, which has the effect of diluting the recoveries for both our creditors and employees, who typically end up owning equity in the reorganized company. An all-debt financing package is simply a better deal for them.

While the final terms will be set by the marketplace, the banks' expectation is that the loan will be for six years. It will carry a competitive interest rate of LIBOR, which is a standard reference point for interest that stands for London Interbank Offered Rate, plus 450 basis points. There is minimal amortization, which improves our flexibility going forward.

JP Morgan and Citibank are the joint lead arrangers for the financing. This means that they will bring together a consortium of banks to provide the total financing.

There are two comments I'd like to make about the financing. First, is that the terms of this loan are unusually attractive for financing of this type, and those terms are a tangible benefit to the company, and that benefit is a direct result of all the work we've accomplished together.

And the second point is that we are working on this financing with two of the top financial institutions in the world -- institutions that do not make commitments like this lightly.

That brings me to my final point: WHY they agreed to provide us with this exit financing.

As you know, JP Morgan and Citibank and other institutions also have been involved in providing our DIP financing during our restructuring. Early in 2003, we instituted a practice of providing detailed updates frequently to our DIP syndicate on our restructuring work. It gave the banks a front row seat to our restructuring. These sessions proved very valuable as they became very familiar with our company, our restructuring and the improvements we've made to our business and our operations.

They know us extremely well -- and they've gained a great deal of confidence in us. With this knowledge, they were comfortable increasing the size of our DIP loan facility several times, which is not typical in bankruptcies, and now in providing our exit financing.

Today represents a validation of three years of hard work, that at the outset, many critics said could not be done. We look forward to working with JP Morgan and Citibank as we complete the last remaining steps in our restructuring and leave bankruptcy behind.

Back to you Glenn.

GLENN:

Thanks very much, Jake. I know everybody on the call really appreciates not only the update, but the importance of this day. Thanks also and congratulations to you, Jake, and your team both inside the company and outside the company for this solid work on both our DIP facility throughout the restructuring and the exit financing we've announced today.

I want to add something to a point that Jake made... something that ties in directly to the discussions with the Board of Directors at our meeting last week.

Jake spoke to us about how we worked very hard to arrange the best terms possible and to preserve the equity of the reorganized company for our investors.

Our investors are one of the three key stakeholders who are affected by our exit financing decision. The other two are our customers and our employees. All three are vital to our success.

During our meeting with the Board of Directors, we discussed the importance of balancing the interests of these three key stakeholders in all the decisions that we make at United in the future.

Airlines, including United, have rarely done this very well. For investors, this industry -- for the most part -- has been a losing proposition. Employees have endured the roller-coaster of boom and bust. All too often our customers had to bear the brunt of the industry's turmoil.

Our decision on exit financing was made in the best interests of customers, employees and investors. Every decision we make and every action we take going forward will take into account the impact of each of these three groups. It's the only way that we're going to create value for all three, and ultimately the only way that we're going to create value for United.

Finalizing our exit financing is another major step forward that keeps us on track for exit from bankruptcy on February 1. Soon we will focus all of our attention, resources and energy where they should be focused: on our customers, our employees and our investors.

The work we have done together gives us the opportunity to be a truly winning company in a highly competitive marketplace. Now it's up to us to make the most of the opportunity.

That's all for now on this call. I'll be speaking to you again soon. Until then, stay focused on our customers, on one another and as one company... stay united.