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North American Airlines Receives Larger Contract for U.S. Air Force Air Mobility Command Flying in FY 2006

Posted on: Thursday, 1 September 2005, 09:00 CDT

JAMAICA, N.Y., Sept. 1 /PRNewswire-FirstCall/ -- North American Airlines, Inc., a wholly owned subsidiary of World Air Holdings, Inc. , has been awarded a $7.34 million contract from the U.S. Air Force Air Mobility Command (AMC) to provide fixed passenger flying in fiscal year 2006, which begins Oct. 1, 2005, and ends Sept. 30, 2006. North American's fixed-buy contract as an independent carrier for FY 2005 was $2.06 million. North American also will continue to support AMC's requirements for additional expansion flying to supplement the fixed passenger contract.

"North American is in a much stronger position for FY 2006 because it is the only passenger carrier on the UPS Contractor Team," said Randy Martinez, World Air Holdings chief executive officer. "The airline flew as an independent carrier in FY 2005, without a team affiliation."

North American's total military revenues, which include fixed and expansion flying, grew from approximately $63 million in the contract's fiscal year 2003 to $85 million in fiscal year 2004. North American has generated approximately $91 million in revenues for the first nine months of the FY 2005 contract, with an estimated $22 to $27 million for the quarter ending Sept. 30, 2005. That estimate was included in World Air Holdings' previous third-quarter consolidated guidance for military revenues.

North American was committed to the new UPS Team prior to its acquisition by World Air Holdings, which precluded North American from joining the Alliance Contractor Team with World Airways. In 2004, North American became the first charter carrier to provide Boeing 767 service for the U.S. military. The airline is expecting delivery of a fourth 767 in spring 2006, and that aircraft type has proven to be popular with the AMC.

North American Airlines is a U.S.-certificated air carrier offering air transportation services throughout the world for the U.S. military and commercial customers. Founded in 1989, North American operates a fleet of eight passenger aircraft in charter and scheduled service. For information, visit http://www.northamericanair.com/.

World Air Holdings, Inc., based in Peachtree City, Ga., has three wholly owned subsidiaries, World Airways, Inc., North American Airlines, Inc., and World Risk Solutions, Ltd. For information, visit http://www.worldairholdings.com/.

["Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition in the market for air transportation services, the cyclical nature of the air carrier business, reliance on key marketing relationships, fluctuations in operating results and other risks detailed from time to time in the company's periodic reports filed with the SEC (reports are available from the company upon request). These various risks and uncertainties may cause the company's actual results to differ materially from those expressed in any of the forward looking statements made by, or on behalf of the company in this release.]

World Air Holdings, Inc.

CONTACT: Media, Steve Forsyth of World Air Holdings, Inc.,+1-770-632-8322; or Investors, Karen Vahouny of Qorvis Communications,+1-703-744-7809

Web site: http://www.worldairways.com/http://www.worldairholdings.com/http://www.northamericanair.com/

Source: PRNewswire-FirstCall

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