"We believe

we can make a compelling case to the ATSB," noted Hollis Harris,

chairman and CEO of World Airways. "The loan would strengthen our

working capital position and help us return to profitability."

World Airways

plays an essential role in the U.S. aviation system, with a fleet of seven

DC 10-30 and eight MD-11 aircraft. The company has been in continuous

operation since 1948 and produced $318 million in revenue for fiscal 2001.

Its global

customer base includes the U.S. Air Force, the company's largest customer.

World Airways has participated in the Civil Reserve Aircraft Fleet program

since its inception, and the company is the leading carrier in transporting

long-haul military passengers.

The tragic

events of September 11 resulted in weakened passenger and cargo demand,

which had a significant, adverse impact on the financial performance of

World Airways. The company has developed a restructuring plan aimed at

returning the airline to profitability and enhancing cash flow.

The plan includes

temporary aircraft lease payment concessions and instituting company-wide

line item cost reduction programs. The company also completed an Employee

Salary Exchange Program, in which employees exchanged 10 percent of their

salary for World Airways stock.

All these initiatives

have contributed to lower unit costs and enhanced cash flow.

World Airways'

loan application includes a detailed seven-year business plan, which shows

increased utilization of existing aircraft, expanded sales efforts, continued

support of the U.S. Air Force Air Mobility Command program, lowered costs

through process improvements, and continued customer service initiatives.

As the Company's financial performance continues to improve, the loan

would be repaid from 2005 to 2009.

"Our business

suffered greatly as a result of the September 11 tragedy, and this loan

guarantee will be an important validation of our role in U.S. aviation

and our ability to return to profitability and future financial success,"

noted Harris. "The cost reductions we've taken to date, combined

with our business plan for future growth, will clearly demonstrate our

ability to repay the loan. We are hopeful that our discussions with the

ATSB will be fruitful, as we continue our recovery efforts during 2002,"

he concluded.

Utilizing a

well-maintained fleet of international range, wide-body aircraft, World

Airways has an enviable record of safety, reliability and customer service

spanning 54 years.

The company

is a U.S. certificated air carrier providing customized transportation

services for major international passenger and cargo carriers, the United

States military and international leisure tour operators.

Recognized

for its modern aircraft, flexibility and ability to provide superior service,

World Airways meets the needs of businesses and governments around the

globe.

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