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RENO AIR ANNOUNCES COMPLETION OF PRIVATE OFFERING

 RENO, Nev., March 4 /PRNewswire/ -- Reno Air Inc. (NASDAQ: RENO |common stock~, RENOU |units~) announced today that Nevada-based Reno Air and Paradise Valley Securities Inc. acting as the placement agent, have successfully completed a private placement offering of $5.1 million of 6.625 percent convertible subordinated promissory notes, due in July 1995.
 The conversion price of the notes into common share is $8.50 per share. The notes convert at the discretion of the holder, or will automatically convert if the company's common stock equals or exceeds $11.90, 140 percent of the conversion price, or 20 consecutive trading days. Also issued with the notes were contingent warrants for the purchase of the number of shares issuable upon the conversion of the notes. Contingent warrants are exerciseable in the event of a pre-payment of the notes.
 "The company maintains a strong cash position," said Jeff Erickson, president and chief executive officer of Reno Air. "Proceeds of this offering will be used for the expansion of airline operations, the leasing of additional aircraft and general working capital purposes."
 Reno Air is a scheduled, full-service jet airline which serves its hometown of Reno/Tahoe as well as Seattle, Portland, Ore., San Francisco, Ontario, Calif., Los Angeles and San Diego. Non-stop service to Minneapolis-St. Paul is scheduled to begin April 1. The carrier currently leases six 140-seat McDonnell Douglas MD-80s, and recently announced plans to increase the fleet to 10 aircraft by this summer. The additional aircraft will be used to supplement existing routes, as well as for additional expansion of service.
 -0- 3/4/93
 /CONTACT: Rod Leith or Sue Putnam of Reno Air, 702-829-5750/
 (RENO)


CO: Reno Air Inc. ST: Nevada, California IN: ARO SU: OFR

SG-GT -- SF002 -- 2764 03/04/93 08:01 EST
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Publication:PR Newswire
Date:Mar 4, 1993
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