XJT Sets Terms of Note Exchange

ExpressJet Holdings announced the number of shares of its common stock to be issued in exchange for each of its 4.25 percent Convertible Notes due 2023 validly tendered under the company's previously announced Offer to Exchange, dated July 2, 2008. Required by the indenture governing the notes, the exchange will yield 2,684 shares for each $1,000 in principal amount tendered for holders who tender and do not withdraw their notes prior to the expiration date of the tender offer. This calculation is based upon 97.5 percent of the average closing sale price of the common stock for the five consecutive trading days ending on July 29, 2008, which closing prices were $0.43, $0.36, $0.38, $0.37 and $0.37, respectively, as reported by the New York Stock Exchange Group.
The company previously announced its intention to unilaterally amend the indenture governing the notes in order to provide improved terms and additional flexibility for the note holders. These benefits will apply to any note holder holding the notes on August 2, 2008 following the consummation of the company's exchange offer. Those note holders will automatically receive the
• 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 percent to 11.25 percent over the remaining note term; and
• An additional put right in three years or on August 1, 2011