Atlantic Coast Airlines and Pan Am International Flight Academy Announce Plans to Develop Flight Simulator Training Facility.

DULLES, Va.--(BUSINESS WIRE)--Dec. 10, 1998--

New Complex to be Located in Loudoun County, VA Near

Washington Dulles Int'l. Airport

Atlantic Coast Airlines (ACA) (NASDAQ/NM:ACAI), the Dulles, VA-based United Express carrier, Thursday announced the signing of a 10-year exclusive contract with Pan Am International Flight Academy (PAIFA) to provide simulator training for the company's Canadair Regional Jet (RJ 200) program.

Under the terms of the agreement, the Academy will develop a comprehensive training facility to be based in Loudoun County, VA, near ACA's headquarters, and Washington Dulles International Airport. The nearly 30,000 square foot complex is scheduled for completion during the fourth quarter of 1999.

The facility will initially house four simulator bays, as well as classrooms, briefing and de-briefing rooms, flight training devices and administrative functions--and will provide significant room for immediate expansion.

ACA operates 14 regional jets, manufactured by Bombardier, Inc. of Montreal. An additional nine CRJ's will be added to the airline's fleet during 1999. Pilot training on this aircraft is now conducted in Canada, as well as a location in Berlin, Germany.

Pedro Sors, president and CEO of the Academy, said, "We are proud that ACA has selected PAIFA as their training provider. This contract is particularly significant to the Academy, because it is our first such contract with a regional carrier.

"We look forward to providing them with an advanced training complex that will meet future training needs--and to providing them with the highest airline training standards." He continued, "Clearly ACA is the `anchor customer' at the facility. However, we intend to add additional simulators to this location in order to service other carriers."

"We are pleased to be working with PAIFA on this project. We anticipate that this facility will be an important step in our regional jet growth, since it will secure available simulator space for our pilots well into the future.

"The new agreement will ensure the best quality training facilities will always be available, and will allow us to maintain our high training standards, while actively controlling costs," said Tom Moore, Chief Operating Office of Atlantic Coast Airlines.

Dale Polen Myers, chairman of the Loudoun County Board of Supervisors also expressed her positive reaction to the announcement, saying, "We are very excited about both announcements by Pan Am International Flight Academy--the decision to build a training facility here in Loudoun, and their teaming with Atlantic Coast Airlines.

"Because of the demands that pilot training places on the industry, this piece of infrastructure is a benefit for the County, the region and the Commonwealth. I believe this is just the beginning of possibilities for the expansion and growth of Dulles Airport."

Headquartered at Miami International Airport, Pan Am International Flight Academy houses 15 simulators, representative of most all major aircraft. In addition to simulator time, the Academy provides a complete air traffic control training facility, classrooms, briefing and de-briefing rooms and specialized mock-ups including CPTs PTMs and FTDs for many aircraft.

Pan Am International Flight Academy is a privately-owned, comprehensive learning environment that provides high quality, advanced aviation training services to professional pilots, flight engineers, flight attendants, air traffic controllers and maintenance personnel operating in commercial, regional, corporate, military, government and cargo service around the world.

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.

On Dec. 15, the carrier will provide service to six cities with 17 daily departures from Chicago O'Hare International Airport, and ACA's route system will span from Maine to Florida and as far West as the Dakotas, serving 53 destinations in 24 states.

At that time, the airline will operate 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.