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Indigo and Oaktree Close Strategic Investment in Spirit Airlines

Posted on: Thursday, 13 July 2006, 12:00 CDT

Spirit Airlines announced today the completion of a strategic investment led by Indigo Partners LLC and funds managed by Oaktree Capital Management, LLC. The investment will provide significant resources for the Company to consolidate its position as the leading low cost carrier to the Caribbean and pursue its long-term growth strategy. Effective today, William A. Franke, Managing Partner of Indigo Partners, becomes Chairman of the Board of Spirit.

"We are excited about Indigo's endorsement of Spirit's low cost model and growth strategy, and Oaktree's continuing support of our efforts," said Ben Baldanza, President and Chief Executive Officer. "Indigo and Oaktree provide Spirit with significant industry experience and financial strength. This new investment shows their commitment to Spirit's success, reinforces its South Florida, Caribbean and Detroit strategy, and provides the resources for Spirit to continue to reduce costs and to accelerate our growth."

"We have looked at the business plans of a number of U.S.-based low fare airlines and we are particularly attracted to the Spirit opportunity," Bill Franke said. "It combines an experienced management team with a loyal work force to produce a very competitive product. With its position in Ft. Lauderdale and its new, all-Airbus fleet, Spirit is well positioned to capture growth opportunities in the Caribbean and Latin America, which will remain the cornerstones of Spirit's business and the foundation of the airline's future growth." Franke has an extensive background in the airline industry and in Latin America, both as an investor and an executive. Prior to founding Indigo Partners, he was the Chairman and Chief Executive Officer of America West Airlines and he currently serves as the Chairman of Tiger Airways (Singapore) and WizzAir (Hungary), Indigo portfolio companies. He is also a Managing Partner of Newbridge Latin America, a private equity fund focused on investments in that region.

About Spirit Airlines

Established in 1980, Spirit Airlines has approximately $500 million in revenues, 30 aircraft and 130 daily flights to 30 destinations in the United States, the Bahamas, and the Caribbean.

Spirit Airlines offers low fares without compromise. Spirit's low fare, full-frills service includes the youngest Airbus fleet in the Americas, new airplanes with all leather seats, coach and business class, international travel, and also offers one of the most attractive frequent flier programs in the market with no blackouts and seats available on every flight.

About Indigo Partners

Indigo Partners LLC, with offices in Phoenix, Arizona and Singapore, is a private equity fund focused primarily on investing in the transportation, airline and airline-related sectors globally.

About Oaktree Capital Management

Oaktree Capital Management, LLC is a Los Angeles-based private investment firm that manages in excess of $30 billion in select niche investment markets for institutions and wealthy individuals.

Source: Business Wire

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