Hello, this is Jane Allen with an Update for Friday, April 22, 2005.

I want to bring you up-to-date on some developments in today's monthly Omnibus Hearing in bankruptcy court.

During the proceeding it was announced that the company reached an agreement with the PBGC under which the agency will terminate all four of United's defined benefit pension plans. As you know, the PBGC had previously announced that it would involuntarily terminate both the ALPA and ground employee plans, and both of those are included in this agreement. The PBGC agreement must be approved by the bankruptcy judge and a hearing on that issue is scheduled for May 4.

I know that the issue of pensions is deeply personal, and the prospect of the government taking over our pension plans has been difficult to understand and accept. But, with that said, this agreement - if approved by the Bankruptcy Court - would resolve one of the major issues standing between us and our exit from bankruptcy. It also would allow us to move forward as a sustainable, competitive airline for the long term - ultimately our most important goal.

United's first choice has always been to resolve pension issues consensually with all of our unions, but, unfortunately, no viable alternatives to termination have been found. However, the company remains open to the possibility of a viable alternative and will act upon it should one be discovered before this agreement takes effect. This step to terminate pensions, though difficult, will allow us to move through the next challenging part of the bankruptcy process and toward a more stabile and competitive future

Moving on, the Bankruptcy Court granted United's motion to extend the exclusivity period for filing a plan of reorganization for an additional 60 days through July 1, 2005. This will allow us to focus on resolving the difficult Section 1113 (c) and pension issues and continue to implement our remaining restructuring initiatives. .

Finally, during the court proceedings today, the AFA and United reached an agreement about how to resolve the issue of whether the company has achieved the level of savings required from all labor groups. The parties will take the issue to arbitration, and the current AFA agreement will remain in place until the issue is resolved. As a result, United withdrew its motion for Section 1113 (e) relief with respect to the AFA, and our 1113 (c) motion as it relates to the AFA will proceed to trial on May 11 if necessary, only with respect to pensions.

I know that you are continuing to do extraordinary work to make us a stronger and more successful airline. Thank you for remaining focused during these exceedingly challenging circumstances

That's all for today. Fly safely and I'll talk to you again next week.