HOUSTON, July 30 /EMWNews/ -- ExpressJet Holdings, Inc.

(NYSE: XJT) announced today it has executed a supplemental indenture to

unilaterally amend the indenture governing its 4.25% convertible notes due

2023. The company announced on July 22 that it had determined to enter into

this amendment in order to provide improved terms and additional

flexibility for the noteholders, and both the trustee under the indenture

and the company executed the amendment earlier today.



    



    The benefits of the amendment will apply to any noteholder holding the

notes on August 2, 2008 following the consummation of the exchange offer

that is currently being conducted as required by the indenture. Under the

current indenture, noteholders may require the company to exchange their

notes on August 1, 2008 and the company has begun the required exchange

offer with the intention to satisfy the obligation wholly in shares of

common stock. Those noteholders who retain their notes will automatically

receive the benefits of the unilateral amendment, including:




    -- Security based on a pro-rata amount of collateral appraised at

       approximately $181 million, including approximately $96 million in

       spare parts and $85 million of spare engines;

    -- Coupon increased from 4.25% to 11.25% over the remaining note term; and

    -- An additional put right in three years or on August 1, 2011.



    Now that the company and trustee have executed the supplemental

indenture and the related security agreement, the company has filed these

documents with the Securities and Exchange Commission via a Form 8-K, which

is available on the SEC's Internet site (http://www.sec.gov).



    ExpressJet Background



    ExpressJet Holdings operates several divisions designed to leverage the

management experience, efficiencies and economies of scale present in its

subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services,

LLC. ExpressJet Airlines serves 166 destinations in North America and the

Caribbean with approximately 1,450 departures per day. Operations include

capacity purchase and pro-rate agreements for mainline carriers; providing

clients customized 50-seat charter options; and ExpressJet branded flying,

providing non-stop service to markets concentrated in the West, Midwest and

Southeast regions of the United States. ExpressJet Services is the North

American partner to three major European original equipment manufacturers

and provides composite, sheet metal, interior and thrust reverser repairs

throughout five facilities in the United States. For more information,

visit http://www.expressjet.com.



    Important Information Regarding Tender Offer



    This report is not a recommendation, an offer to purchase or a

solicitation of an offer to sell any securities of the company. The company

has commenced such tender offer as required under the indenture and filed

with the SEC a tender offer statement on Schedule TO-I and related

exhibits, including an offer to exchange, letter of transmittal and related

documents. The company has also mailed such materials to the noteholders.

Noteholders are urged to carefully read these documents, as they contain

important information, including the various terms of, and conditions to,

the tender offer. Noteholders can obtain a copy of the tender offer

statement on Schedule TO-I, offer to exchange, letter of transmittal and

related documents free of charge from the SEC's EDGAR database, which can

be accessed through the SEC's Internet site (http://www.sec.gov).



    Forward Looking Statement



    Some of the statements in this document are forward-looking statements

that involve a number of risks and uncertainties. Many factors could affect

actual results, and variances from current expectations regarding these

factors could cause actual results to differ materially from those

expressed in the forward-looking statements. Some of the known risks that

could significantly impact revenues, operating results and capacity

include, but are not limited to the company's continued dependence on

Continental for the majority of its revenue; the company's new operations

are less profitable than historical results; record-breaking fuel prices;

competitive responses to the company's branded entry into new markets;

certain tax matters; reliance on technology and third-party service

providers; flight disruptions as a result of operational matters;

regulatory developments and costs, including the costs and other effects of

enhanced security measures and other possible regulatory requirements;

competition and industry conditions. Additional information concerning risk

factors that could affect the company's actual results are described in its

filings with the Securities and Exchange Commission, including its 2007

annual report on Form 10-K. The events described in the forward-looking

statements might not occur, or might occur to a materially different extent

than described herein. The company undertakes no duty to update or revise

any forward-looking statements, whether as a result of new information,

future events or otherwise.