Midwest Air Group Comments on Results of AirTran’s Unsolicited Exchange Offer

MILWAUKEE, May 17 /PRNewswire-FirstCall/ — Midwest Air Group, Inc. (AMEX:MEH) , parent company of Midwest Airlines, today responded to the announcement by AirTran Holdings, Inc. (NYSE:AAI) of the preliminary results of its unsolicited exchange offer, which expired yesterday and was extended until June 8.


“Nothing has changed as far as control of Midwest Air Group is concerned; no shares have been purchased by AirTran,” said Carol N. Skornicka, senior vice president, general counsel and secretary. “The exchange offer is subject to numerous conditions. Regardless of the number of shares tendered, AirTran would not purchase shares unless those conditions are waived or are satisfied.”


Skornicka explained that several significant actions would have to be taken by the Midwest Board of Directors for those conditions to be satisfied, including waiving the provisions of Wisconsin law that protect Wisconsin corporations from hostile takeovers. “The board has declined to take action to satisfy any of the conditions,” she pointed out. “While other scenarios are theoretically possible, as a practical matter, board approval would be required for AirTran to accomplish its goal of acquiring our company.”


Midwest’s board unanimously recommended rejection of AirTran’s most recent exchange offer for a number of reasons, including its firm belief that the offer is inadequate and that it does not take into account the long-term value of Midwest’s strategic plan.


The company also noted that its annual meeting of shareholders will be held on June 14, 2007, at which time Midwest shareholders will be voting for the election of three directors to the company’s board of directors. The Midwest board recommends that shareholders vote for the re-election of three current directors.


Midwest Airlines features jet service throughout the United States, including Milwaukee’s most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as “The best care in the air” by providing passengers with impeccable service and onboard amenities at competitive fares. Both Skyway Airlines, Inc. — a wholly owned subsidiary of Midwest Airlines — and SkyWest Airlines, Inc. operate as Midwest Connect and offer service to and connections through Midwest Airlines’ hubs. Together, the airlines offer service to 51 cities. More information is available at http://www.midwestairlines.com/.


This news release contains forward-looking statements about the results expected under the company’s strategic plan and that otherwise may state the company’s or management’s intentions, hopes, beliefs, expectations or predictions for the future. Words such as “projecting,” “expect,” “anticipate,” “believe,” “estimate,” “goal,” “plan,” “objective” or similar words are intended to identify forward-looking statements. It is important to note that the company’s actual results could differ materially from the projected results contained in these forward-looking statements. Factors that may cause such a difference to occur include, but are not limited to, fees and expenses incurred in connection with AirTran’s unsolicited exchange offer and the risk factors described in “Item 1A. Risk Factors” in the company’s “Annual Report on Form 10-K” for the year ended December 31, 2006.


Important Additional Information


Midwest has filed a definitive proxy statement on Schedule 14A (the “2007 Proxy Statement”) with the Securities and Exchange Commission (“SEC”) in connection with its Board of Directors’ solicitation of proxies to vote in favor of the slate of directors nominated by the Board of Directors and to vote on any other matters that properly come before the 2007 Annual Meeting of Shareholders, or any adjournment or postponement thereof. On May 16, 2007, Midwest began the process of mailing the 2007 Proxy Statement and a WHITE proxy card to each Midwest shareholder entitled to vote at the Annual Meeting. Midwest has engaged MacKenzie Partners, Inc. (“MacKenzie”) to assist it in soliciting proxies from its shareholders. Midwest has agreed to pay customary compensation to MacKenzie for such services and to indemnify MacKenzie and certain related persons against certain liabilities relating to or arising out of the engagement. Directors, officers and employees of Midwest may solicit proxies, although no additional compensation will be paid to directors, officers or employees for such services.


Midwest has filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”) and amendments thereto regarding AirTran’s exchange offer that contain information regarding members of the Board of Directors’ and members of management’s potential interests in the exchange offer. Information regarding securities ownership by the Board of Directors and certain members of management as of March 26, 2007 is contained in the 2007 Proxy Statement. Midwest shareholders should read the Schedule 14D-9 and the 2007 Proxy Statement (including any amendments or supplements to such documents) because these documents contain (or will contain) important information. The 2007 Proxy Statement, the Schedule 14D-9 and other public filings made by Midwest with the SEC are available without charge from the SEC’s Web site at sec.gov and from Midwest at midwestairlines.com.


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Source: Midwest Air Group, Inc.