Seabury Completes Financial Restructuring Assignment for Air Canada

$1.1 Billion of New Equity Capital for Exit from CCAA Raised

NEW YORK, September 30, 2004 - Seabury today announced that it has completed its financial restructuring assignment for Air Canada under the Companies’ Creditors Arrangement Act (CCAA).

Serving as its financial advisor, Seabury advised the Company on restructuring approximately $13 billion of debt and lease obligations and on raising $1.1 billion of new equity capital through a combination of underwritten rights offering ($850 million) and private equity ($250 million). This is one of the largest passenger air carrier equity raises in history.

Seabury also advised Air Canada on the arrangement of $540 million of exit debt financing as well as on financing for a new regional jet order, and on restructuring its network, distribution system and fleet and on corporate-wide cost-reduction initiatives.

All amounts are in Canadian dollars.

Founded in 1995, Seabury provides investment banking, financial advisory, restructuring and consulting services primarily for transportation companies and those in related industries. With over 75 professionals in the United States and Europe, Seabury has one of the largest investment banking, restructuring, and management consulting practices in the world dedicated to the transportation sector.

Contact: Karen C. Cook
Director of Communications
kcook@seaburygroup.com
+1 212 475 8132