Mercury Air Group's Cargo Division is Appointed by C.A.L. Cargo Air Lines, Ltd. as Its General Cargo Sales Agent.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 29, 2000

Mercury Air Group, Inc. (AMEX/PCX: MAX) announced today that the Hermes Aviation division of Mercury Air Cargo, Inc. a Company subsidiary, has been appointed general cargo sales agent for C.A.L. Cargo Air Lines, Ltd., an Israeli all-cargo carrier, throughout the United States, Canada and Mexico. The initial three-year contract agreement includes an option for an extension that would make Hermes Aviation general cargo sales agent for C.A.L. Cargo Air Lines into 2006.

"We are proud to serve C.A.L. Cargo Air Lines and look forward to providing the carrier with an unparalleled level of service," said Joseph A. Czyzyk, President and Chief Executive Officer of Mercury Air Group, Inc., the parent company, adding, "The contract will have a three-year value of approximately $2 million to Hermes Aviation."

"By appointing Hermes as general cargo sales agent throughout North America, C.A.L. Cargo Air Lines' will improve its bottom line, while at the same time enhancing our own," said Arturo Horton, Executive Director of Hermes Aviation, Inc.

C.A.L. Cargo Air Lines began operating two weekly B747 freighters from New York's JFK to Tel Aviv via Luxembourg on September 9, 2000 with a cargo capacity of 100 tons per flight.

Hermes Aviation operates sales offices in Los Angeles, San Francisco, Seattle, Houston, Chicago, Atlanta, and New York, in the U.S.; Toronto and Montreal, in Canada; Mexico City and Guadalajara, Mexico; and a network of correspondents in Latin America, Asia, and Europe. In FY 1999-00, Hermes Aviation generated revenues of more than $65 million for the 20 world airlines it represents throughout its sales network.

Mercury Air Group, Inc. is a worldwide provider of aviation petroleum products, cargo services, aviation information technology and support services to international and domestic commercial airlines, general and business aviation and U.S. government aircraft. Founded in 1956 by three members of the American Volunteer Group in China, better known as the AVG Flying Tigers, Mercury reported fiscal year 1999 net income of over $5.9 million on revenues of over $224 million.

Statements contained in this news release, which are not historical facts, are forward looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.