ACE in Secondary Offering of Jazz

In its continued divestiture of its holdings in its regional partner, Jazz, ACE Aviation Holdings Inc. is selling an aggregate of 35.5 million trust units of Jazz Air Income Fund at a price of $7.75 per unit, for gross proceeds of $275.1 million. Jazz Air Income Fund will not receive any of the proceeds from the offering. The offering is expected to close on or about October 22, 2007. The underwriting syndicate is being led by RBC Capital Markets and CIBC World Markets Inc. Immediately following the offering, ACE Aviation Holdings Inc. will retain 24,726,920 units of Jazz Air Income Fund, representing 20.1 percent of the 122,865,143 units issued and outstanding. The securities offered are not available to be sold in the United States.