Atlantic Coast Airlines Announces New 10-Year Contract With United Airlines.

DULLES, Va.--(BUSINESS WIRE)--Dec. 17, 1998--

ACA Also Announces Plan to Acquire 10 Additional Canadair Regional

Jets, Plus 10 More Options

Atlantic Coast Airlines ("ACA") (NASDAQ/NM:ACAI), the Dulles, Va.-based United Express carrier, today announced the completion of a new comprehensive 10-year marketing agreement with United Airlines.

The contract allows ACA to retain its position as an exclusive United Express carrier, and sets the stage for the continued expansion of regional jet service in current and future markets served by United Express/ACA.

As part of the announcement, ACA is also confirming its intent to acquire an additional 10 Canadair Regional Jet aircraft (CRJs) from Bombardier Aerospace of Montreal.

The new jets would be delivered during the period from July 2000 to September 2001. ACA'S firm CRJ orders would then total 43 aircraft, 14 of which are delivered and in service. This transaction would also make available another ten options for future acquisitions, bringing total options to 27.

ACA President and CEO Kerry Skeen says, "As we now enter our tenth year of service, this strong commitment between our company and United Airlines ensures that we will continue to achieve our goals of increased service and measured growth over the next decade as well."

Skeen adds, "The acquisition of additional regional jets, and the second quarter opening of our new regional airline concourse at Washington Dulles will allow us to stay ahead of the incredible pace of growth in the Dulles corridor. As we move forward, we will continue to upgrade service to existing markets and add new routes, further strengthening the connecting infrastructure at Dulles."

Tom Hanley, United Airlines' director of interline programs says, "Extending the United Express relationship with Atlantic Coast is an important step in our plan to build the United/United Express worldwide network. ACA's expanding regional jet fleet and their ongoing commitment to quality and safety made them a natural fit."

Hanley added, "With this long-term agreement in place, United and ACA will be well positioned to meet new challenges and opportunities well into the next century."

The 50-passenger CRJ is the quietest commercial aircraft on the market today. It has a cruising speed of 534 miles per hour, offers a two-by-two seating configuration, and can cruise at altitudes of up to 41,000 feet.

Atlantic Coast Airlines offers more than 500 daily departures system-wide serving both Washington Dulles and Chicago O'Hare, which are major hubs for United Airlines. From its major hub at Washington Dulles, ACA offers 230 daily flights to 47 cities.

The carrier provides service to six cities with 17 daily departures from Chicago O'Hare International Airport, and ACA's route system spans from Maine to Florida and as far West as the Dakotas, serving 53 destinations in 24 states.

Currently, the airline operates a fleet of 74 aircraft, including 14 50-passenger Canadair Regional Jets, 32 29-passenger Jetstream J-41s and 28 19-passenger Jetstream 32 turboprop aircraft. ACA employs over 2,000 aviation professionals.

The common stock of Atlantic Coast Airlines Holdings, Inc., the parent of Atlantic Coast Airlines, is traded on the Nasdaq National Market under the symbol ACAI. For more information about ACA and our United Express service, visit our website at www.atlanticcoast.com.