UAL Corp. Announces $250 Million Distribution to Shareholders

CHICAGO , Dec. 7 /PRNewswire-FirstCall/ -- United Airlines (Nasdaq: UAUA)today announced that the UAL Corporation Board of Directors approved a specialdistribution of $2.15 per share to holders of UAL common stock, orapproximately $250 million. The distribution will be made on Jan. 23, 2008 toholders of UAL Corporation common stock on Jan. 9, 2008 . United alsoannounced that it paid down $500 million of the term loan under its existingcredit agreement.

Both the distribution and the term loan prepayment follow the approval byUnited's lenders of an amendment to the company's credit agreement. Under theamendment, the company can undertake an additional $250 million in shareholderinitiatives without any additional prepayment. In addition, the amendmentprovides that the company can carry out further shareholder initiatives in anamount equal to future term loan prepayments.

"This shareholder distribution underscores our commitment to creatingvalue for our investors," said Glenn Tilton , chairman, president and CEO. "Onbehalf of our board of directors, we are pleased to make this decision toprovide a distribution to our shareholders while strengthening our balancesheet and investing in our business. We compete for shareholders just as wecompete for customers."

Since exiting bankruptcy, United has reduced its total net debt by $2.7billion through the end of the third quarter. United has generated more than$2 billion in operating cash flow in the first nine months of the year. Thecompany also plans to invest $4 billion in its business over the next fiveyears.

For the 5% Senior Convertible Notes due 2021 (the "O'Hare Notes"), the4.5% Senior Limited-Subordination Convertible Notes due 2021 (the "EmployeeNotes") and the PBGC 2% Convertible Preferred Stock ("PBGC Preferred Stock"),the conversion price and the ratios will be adjusted in accordance with theirrespective terms.

About United

United Airlines (Nasdaq: UAUA) operates more than 3,300* flights a day onUnited, United Express and Ted to more than 200 U.S. domestic andinternational destinations from its hubs in Los Angeles , San Francisco , Denver , Chicago and Washington, D.C. With key global air rights in theAsia-Pacific region, Europe and Latin America, United is one of the largestinternational carriers based in the United States . United also is a foundingmember of Star Alliance , which provides connections for our customers to 855destinations in 155 countries worldwide. United's 55,000 employees reside inevery U.S. state and in many countries around the world. News releases andother information about United can be found at the company's Web site athttp://united.com.

*Based on the flight schedule between Jan. 1, 2007 and Dec. 31, 2007 .

The information included in this press release contains certain statementsthat are "Forward-Looking Statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. These statements are subject to anumber of assumptions, risks and uncertainties related to the Company'soperations and the business environment in which it operates. Actual resultsmay differ materially from any future results expressed or implied in suchForward-Looking Statements due to numerous factors, many of which are beyondthe Company's control, including factors set forth in the Company's Form 10-Kfor 2006 and other subsequent Company reports filed with the United States Securities and Exchange Commission. Persons reviewing this press release arecautioned that the Forward-Looking Statements speak only as of the date madeand are not guarantees of future performance. The Company undertakes noobligation to update any Forward-Looking Statements.

SOURCE United Airlines