Athens, December 11th 2003

PRESS RELEASE

OLYMPIC AIRWAYS GROUP RESTRUCTURING

The Greek Parliament has enacted special legislation (No. 3185/2003) for the restructuring of the Olympic Airways Group of companies. This new law provides for the flight division of Olympic Airways as well as that of its subsidiary Olympic Aviation SA to be spun off and merged with a subsidiary company known as Macedonian Airlines (ICAO code: MCS) that has been re-named Olympic Airlines.

Olympic Airlines on December 12th,2003 at 00:01 Athens time will commence operations incorporating the total flight operation activities of the Olympic Airways Group (Olympic Airways, Olympic Aviation and Macedonian Airlines). The above-mentioned legislation provides that Olympic Airlines acquires all rights, brands, assets and current liabilities of the flight operations divisions of Olympic Airways and Olympic Aviation.

Olympic Airlines applied to IATA and is operating under airline designator code OA and accounting/prefix code 050 which used to be assigned to Olympic Airways. Olympic Airlines has accepted to honour all industry obligations of Olympic Airways under codes OA/050 including obligations and liabilities pertaining to settlements through the IATA Clearing House and Multilateral Interline Traffic Agreements. In addition, IATA is holding a security deposit which may be used to offset excess refunds processed through BSPs.

Olympic Airlines advises that it is currently using Olympic Airways traffic documents. Olympic Airlines is producing own traffic documents, which conform to IATA resolution specifications.
Olympic Airlines has signed the MITA passenger and cargo agreements thru IATA.

All concurrences presently held by Olympic Airways are to be transferred to
Olympic Airlines through the applicable IATA procedures.

Olympic Airlines operates the schedule and routes presently operated by Olympic Airways and its subsidiaries, using a fleet of A340-300, A300-605R, B737-400, B737-300, ATR72, ATR42 and Bombardier DASH8 aircraft.


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