Eos Airlines Enters Into Term Sheet for $50 Million of Capital

In the face of tight credit markets and an economic environment that has led to several industry failures, Eos Airlines announced today that it has agreed to a term sheet outlining the terms on which Eos will secure an additional $50 million in capital from a current investor. The transaction, which is scheduled to close May 1, 2008, is seen as underscoring confidence in Eos’ business model built around an entirely new class of air travel.

“When we closed on our last round of financing, we were clear that we would need to raise additional capital,” said Jack Williams, Eos President and CEO. “Our success - in the face of this extremely challenging economic and credit environment - shows that investors continue to be enthusiastic about our business model.

“At a time when much of the airline industry is mired in misery, we have provided outstanding service and shown an uncompromising commitment to quality. We’ve achieved an extremely high level of satisfaction among our Guests, many of whom have personally embraced the company and become our de facto ambassadors. We have the most efficient business model, our flight loads have increased and our revenues have risen consistently.

“Now we have a term sheet with a current investor for the financing needed to take us to corporate profitability in 2009.

“I want to take this opportunity to express my appreciation to our dedicated employees, who come to work each and every day with the goal of transporting our Guests - literally and figuratively - and who have made our success possible.”

Source: EOS Airlines

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