Recording a

$1.7 million liability for estimated losses based upon contractual lease

costs (reduced by estimated sub-lease rentals) that will continue to be

incurred for the remaining term of the company's lease agreement for office

space at its former headquarters in Herndon, Virginia. After relocating

its headquarters to Atlanta in 2001, the company sublet its Herndon office

space to a tenant that did not make timely rental payments to the company

in 2002.

Revenues for

2002 rose to $384.5 million from $317.9 million in 2001, a 21 percent

increase. Net income for the year ended December 31, 2002, was $2 million,

or $0.18 per share, versus a net loss of $26 million, or $2.42 per share,

for the year ended December 31, 2001.

Per share results

were computedon the basis of 11.1 and 10.8 million weighted average shares

outstanding for 2002 and 2001, respectively.

The company

reported that it ended 2002 with cash and cash equivalents of $21.5 million

compared to $19.5 million at the end of 2001.

According to

Hollis Harris, chairman and CEO, "The evidence of a solid and well-constructed

business plan was clearly demonstrated in 2002, as we reported profitability

in three of the four quarters and for the year. We achieved a $28 million

turnaround, from the $26 million net loss in 2001, which included the

$5.1 million benefit from the government grant, to $2 million net earnings

in 2002.

"This

is validation of, validates our commitment to increasing and diversifying

our revenue base and reducing our cost structure. This is especially noteworthy

as the economy has continued to weaken and many of our competitors have

suffered.

He continued,

"I'm especially proud that we achieved or exceeded virtually all

of our operating and financial targets this year. We converted two convertible

aircraft to full freighters in 2002, in response to the increase in cargo

business. Our cargo business, in fact, increased from 12 percent of total

revenues in 2001 to 20 percent in 2002."

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