August 24, 2001

FOR IMMEDIATE RELEASE

NATIONAL MEDIATION BOARD

Contact: Daniel Rainey, 202-692-5050

Re: Mediated Talks between the IAM District 141M and United Airlines

Mediation between the International Association of Machinists and Aerospace Workers, District 141M, (District 141M) and United Airlines involving Mechanics and Related employees resumed on August 21 and recessed on August 24. During face-to-face meetings, the parties exchanged significant proposals reflecting their views of recent settlements in the industry; however, the parties reached no final agreement.

United and District 141M orally requested the NMB to bring this matter to conclusion as quickly as possible by placing the parties in a 30 day cooling-off period. Chief of Staff Stephen Crable and Mediator Richard Frey requested both parties to "blackout" the proposals and discussions which occurred during the week. Crable and Frey indicated they will report their recommendations to the Board Members.

The NMB announced that it is requesting a meeting with the parties, separately, during the week of September 3 to discuss proffering arbitration and bringing the case to final settlement. United Airlines is the nation's second largest airline, operating more than 2,330 daily flights on a route network which spans the globe. The airline serves 139 destinations in 26 countries and two US territories. District 141M represents more than 15,000 United employees working in the mechanic and related job classifications.

Additionally, the NMB announced meetings between United and District 141 (which represents United ramp, stores and public contact employees) recessed and will resume next week.