BAX Global and Vanguard Airlines Form Strategic Partnership

IRVINE, Calif., May 22, 2000--BAX Global’s Supply Chain Management division and Vanguard Airlines, Inc. (“Vanguard”) today announced a strategic partnership to jointly implement an integrated supply chain management solution for the new millennium. 

Under this agreement, BAX Global will take over warehouse operations at Vanguard’s Kansas City Airport Headquarters and will provide Vanguard with management of its supply pipeline, the component repair cycle, warehouse management and calibrated tools management. By incorporating the material management and transportation management expertise of BAX Global’s Supply Chain group and the implementation of a new maintenance and engineering software system, scheduled for second quarter, Vanguard anticipates these steps will lead to more cost effective warehouse operations.

BAX Global is recognized as the leading provider of logistics services to the aerospace industry, providing management for Air New Zealand, Bombardier, British Airways and Saab Aircraft. 

“We are pleased and excited to be part of the continued growth of Vanguard Airlines and believe that we can bring our expertise, gained from working with our other airline customers, to this strategic relationship. Our aim is to help Vanguard control costs in material management and at the same time support the technical staff on their core functions of engineering excellence,” said Joey Carnes, President of BAX Global Inc.

Robert J. “Rocky” Spane, Chairman, President and CEO of Vanguard Airlines, commenting on the strategic relationship added, “In November of 1999, we officially transitioned from a start-up airline to a full-fledged national airline. We have had to look long and hard at what is going to take us through the next growth phase in 2000 and beyond. Along with the many new initiatives that we are bringing forward at this time, we recognize that certain functions are outside of our core competency and can be better handled by specialist companies like BAX Global. BAX has the expertise we can use right now and I am personally very pleased that they are part of the Vanguard team.” 

About Vanguard Airlines, Inc.

Vanguard, which began service in December 1994 and is headquartered in Kansas City, is a low-fare, 100% ticketless passenger airline providing convenient and frequent scheduled jet services to the following ten cities: Atlanta, Buffalo/Niagara Falls, Chicago-Midway, Cincinnati, Dallas/Ft. Worth, Denver, Kansas City, Minneapolis/St. Paul, Myrtle Beach, and Pittsburgh. Vanguard employs approximately 900 full-time equivalent employees and currently operates a fleet of thirteen Boeing 737-200’s. Vanguard reported its first-ever annual operating profit in 1998 and its sixth consecutive quarter of operating profits in the third quarter of 1999. For more information on Vanguard or to book reservations on-line, please visit our web-site at www.flyvanguard.com.

About BAX Global

BAX Global, a Pittston company, is a $2.1 billion transportation and supply chain management company offering multi-modal freight forwarding to business-to-business shippers through a global network of over 500 offices in 123 countries. In North America, BAX Global offers both standard and guaranteed overnight and second day delivery to North American business communities and international airfreight, ocean forwarding and customs brokerage worldwide. 

BAX Global’s press releases are available by fax by calling Company News On-Call, 800-758-5804, ext. 117050. For a complete listing of BAX services visit the World Wide Web at http://www.baxglobal.com.

For More Information:

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements are made based on management’s belief, as well as assumptions made by, and information currently available to, management pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Further information on such risks and uncertainties that could affect Vanguard’s financial results are included in Vanguard’s filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 1998 and in subsequent filings filed with the Securities and Exchange Commission.