Atlas Air, Inc. Announces Contract to Provide Boeing 747-400 Freighter Services.

GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 20, 1998--Atlas Air, Inc. (NYSE:CGO) announced today that it has signed an agreement to provide B747-400 airfreight services for Cargolux Airlines International S.A.

This is the second such contract with Cargolux for full utilization of one of Atlas Air's new 747-400 freighter aircraft. The contract will enable Cargolux to provide scheduled services on its routes, with Atlas providing the aircraft, crew, maintenance and insurance (ACMI) under its standard terms and conditions.

"Cargolux's decision to enter into an ACMI contract for another 747-400 freighter is a strong indicator of the ongoing requirement for airfreight transport," stated Michael A. Chowdry, Chairman, Chief Executive Officer and President of Atlas Air. "This method of getting goods to consumers has become an integral part of the manufacturing chain. With the world's largest fleet of 747 freighters, Atlas is the logical choice for airlines seeking to grow their cargo operations."

"Entering into this agreement with Atlas expands our ability to meet the present and future needs of our customers who demand the increased range, larger cargo volume and reliability of the 747-400 freighter," stated Heiner Wilkens, Chief Executive Officer and President of Cargolux. "Our core business is to provide international freight forwarders with high quality, long range scheduled and charter services. We are pleased with the opportunity Atlas offers us to grow with the market in order to provide the service the forwarders and shippers expect from us."

Atlas will take delivery of its third 747-400 this month. Two additional -400 freighters will be delivered in 1998, four in 1999 and the last firm delivery in 2000. Atlas has options for 10 additional 747-400Fs. In addition to its two 747-400 contracts with Cargolux, Atlas previously signed an ACMI agreement for a 747-400 with British Airways in June.

In a separate transaction, last month Atlas entered into an agreement to acquire three Boeing 747-200 freighter aircraft from Cargolux. As a result of this new 747-400 contract, one of these three aircraft will immediately be leased back to Cargolux under a standard Atlas aircraft, crew, maintenance and insurance (ACMI) contract. One aircraft will be placed with another customer to be named at a later date.

Atlas Air is a United States certificated air carrier that operates a fleet of 747 freighter aircraft. Atlas operates its fleet for customers that include some of the world's leading air carriers, including Alitalia, British Airways, Cargolux, China Airlines, Emirates, FastAir, Iberia, KLM, LAS, SAS and Thai International Airways serving 62 cities in 38 countries.