-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Wt3IZkdQhE5tXWV2KPIiPAqZaardasw8wIvIsAI5LA6AMl931C7XDCw3l6UdROf5
 j/4VAwsO4V5J+zMZm6P87Q==

<SEC-DOCUMENT>0000950153-04-000137.txt : 20040123
<SEC-HEADER>0000950153-04-000137.hdr.sgml : 20040123
<ACCEPTANCE-DATETIME>20040123104122
ACCESSION NUMBER:		0000950153-04-000137
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040302
FILED AS OF DATE:		20040123
EFFECTIVENESS DATE:		20040123

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MESA AIR GROUP INC
		CENTRAL INDEX KEY:			0000810332
		STANDARD INDUSTRIAL CLASSIFICATION:	AIR TRANSPORTATION, SCHEDULED [4512]
		IRS NUMBER:				850302351
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15495
		FILM NUMBER:		04539403

	BUSINESS ADDRESS:	
		STREET 1:		410 NORTH 44TH STREET
		STREET 2:		SUITE 700
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85008
		BUSINESS PHONE:		6026854000

	MAIL ADDRESS:	
		STREET 1:		410 NORTH 44TH STREET
		STREET 2:		SUITE 700
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85008

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MESA AIRLINES INC
		DATE OF NAME CHANGE:	19950426
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>p68687def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P align="center"><FONT size="2">INFORMATION REQUIRED IN PROXY STATEMENT<BR>
SCHEDULE 14A INFORMATION<BR>
Proxy Statement Pursuant to Section&nbsp;14(a) of the<BR>
Securities Exchange Act of 1934
</FONT>


<P align="left"><FONT size="2">Filed by the Registrant
<FONT face="Wingdings">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="Wingdings">&#111;</FONT>
</FONT>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT size="2">Check the appropriate box:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Preliminary Proxy Statement
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Confidential, For Use of the</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#254;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Definitive Proxy Statement
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Commission Only (as permitted</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Definitive Additional Materials
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">by Rule&nbsp;14a-6(e)(2))</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Soliciting Material Pursuant to
Section&nbsp;240.14a-12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</DIV>


<P align="center"><FONT size="2"><B>MESA AIR GROUP, INC.</B><BR>
<HR size="1" noshade width="100%" align="center">
</FONT>

<DIV align="center"><FONT size="2">(Name of Registrant as Specified In Its Charter)
</FONT>
</DIV>


<P align="center"><HR size="1" noshade width="100%" align="center">

<DIV align="center"><FONT size="2">(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
</FONT>
</DIV>

<P align="left"><FONT size="2">Payment of Filing Fee (Check the appropriate box):
</FONT>


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">

<TD width="1%" nowrap align="right"><FONT size="2" face="Wingdings">&#254;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">No fee required.
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2" face="Wingdings">&#111;</FONT> </TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">1)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Title of each class of securities to which transaction applies:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">2)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Aggregate number of securities to which transaction applies:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">3)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the filing fee is
calculated and state how it was determined):
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">4)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Proposed maximum aggregate value of transaction:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">5)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Total fee paid:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2" face="Wingdings">&#111;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Fee paid previously with preliminary materials:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><HR size="1" noshade width="100%" align="center"></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2" face="Wingdings">&#111;</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2"> Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">1)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Amount previously paid:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">2)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Form, Schedule or Registration Statement No.:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">3)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Filing Party:
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">4)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Date Filed:
</FONT></TD>
</TR>
</TABLE>



<P align="center"><FONT size="2">
</FONT>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="4">MESA AIR GROUP, INC.</FONT></B>

<DIV align="center">
<B><FONT size="2">410 North 44th Street</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Phoenix, Arizona 85008</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B>

<DIV align="center">
<B>To Be Held on March&nbsp;2, 2004</B>
</DIV>

<P align="left">
<FONT size="2">To Our Shareholders:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2004 Annual Meeting of Shareholders of MESA
AIR GROUP, INC., a Nevada corporation (the &#147;Company&#148;),
will be held at the Phoenix Airport Marriott, 1101 N. 44th
Street, Phoenix, Arizona, on March&nbsp;2, 2004, at
10:00&nbsp;a.m., Arizona time, for the following purposes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To elect seven
    (7)&nbsp;directors to serve for a one-year term;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To consider and
    vote on a proposal to ratify and approve the Company&#146;s 2003
    Employee Stock Incentive Plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To consider a
    proposal introduced by a shareholder to adopt a bylaw provision
    to subject to shareholder vote on the next shareholder ballot,
    the adoption or extension of any current or future poison pill
    and, once adopted, to subject to shareholder vote on the next
    shareholder ballot the removal of this bylaw provision;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ratify the
    selection of Deloitte &#38; Touche LLP as independent auditors
    for the Company; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To transact such
    other business as may properly come before the meeting or any
    postponement(s) or adjournment(s) thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors has fixed the close of
business on January&nbsp;9, 2004, as the record date for the
determination of shareholders entitled to notice of and to vote
at the meeting or any postponement or adjournment thereof.
Shares of the Company&#146;s common stock may be voted at the
meeting only if the holder is present at the meeting in person
or by valid proxy. A copy of the Company&#146;s 2003 Annual
Report, which includes audited financial statements, was mailed
with this Notice and Proxy Statement to all shareholders of
record on the record date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management of the Company cordially invites you
to attend the Annual Meeting. Your attention is directed to the
attached Proxy Statement for a discussion of the foregoing
proposals and the reasons why the Board of Directors encourages
you to vote <I>for</I> approval of Proposals&nbsp;1, 2 and 4 and
<I>against</I> Proposal&nbsp;3.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">By Order of the Board of Directors
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <IMG src="p68687p6868700.gif" alt="-s- Jonathan G. Ornstein"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Jonathan G. Ornstein, Chairman of the Board
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">and Chief Executive Officer
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<FONT size="2">Phoenix, Arizona
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">January&nbsp;23, 2003
</FONT>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">IMPORTANT:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IT IS
IMPORTANT THAT YOUR STOCK BE REPRESENTED AT THIS MEETING. PLEASE
COMPLETE, DATE, SIGN AND PROMPTLY MAIL THE ENCLOSED PROXY CARD
IN THE ACCOMPANYING ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED
IN THE UNITED STATES.</FONT></B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<DIV>&nbsp;</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PROXY STATEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">ELECTION OF DIRECTORS (PROPOSAL NO. 1)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">BOARD AND COMMITTEE MEETINGS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">COMPENSATION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">COMPENSATION COMMITTEE INTERLOCKS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">REPORT OF AUDIT COMMITTEE OF THE BOARD OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">Option Grants in Last Fiscal Year</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">OPTION EXERCISES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">EQUITY COMPENSATION PLANS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">EMPLOYMENT AND CHANGE IN CONTROL ARRANGEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">COMPARISON OF STOCK PERFORMANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">RATIFY ADOPTION OF MESA AIR GROUP, INC. 2003 EMPLOYEE STOCK INCENTIVE PLAN (PROPOSAL NO. 2)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">SHAREHOLDER PROPOSAL RELATING TO POISON PILLS (PROPOSAL NO. 3)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS (PROPOSAL NO. 4)</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B>PROXY CARD IN THE ACCOMPANYING ENVELOPE WHICH REQUIRES NO
POSTAGE IF MAILED IN THE UNITED STATES.</B>

<P align="center">
<B><FONT size="4">MESA AIR GROUP, INC.</FONT></B>

<DIV align="center">
<B><FONT size="2">410 North 44th Street</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Phoenix, Arizona 85008</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="38%" align="center" noshade>

<DIV>&nbsp;</DIV>

<!-- link1 "PROXY STATEMENT" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center">
<B>PROXY STATEMENT</B>
</DIV>

<P align="center">
<HR size="1" width="38%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors of MESA AIR GROUP, INC., a
Nevada corporation (the &#147;Company&#148;), is soliciting
proxies to be used at the 2004 annual meeting of shareholders of
the Company to be held on March&nbsp;2, 2004, at
10:00&nbsp;a.m., Arizona time, at the Phoenix Airport Marriott,
1101 North 44th Street, Phoenix, Arizona, and any adjournment(s)
or postponement(s) thereof (the &#147;Annual Meeting&#148;).
This proxy statement and the enclosed form of proxy will be
mailed to shareholders beginning January&nbsp;23, 2004.
</FONT>

<P align="left">
<B><FONT size="2">Who Can Vote</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Shareholders of record as of the close of
business on January&nbsp;9, 2004 (the &#147;Record Date&#148;),
may vote at the Annual Meeting and at any adjournment or
postponement of the meeting. Each shareholder has one vote for
each share of Common Stock held of record on the Record Date. On
the Record Date, 31,743,807 shares of the Company&#146;s common
stock, no par value per share (the &#147;Common Stock&#148;),
were issued and outstanding.
</FONT>

<P align="left">
<B><FONT size="2">How You Can Vote</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All valid proxies received before the Annual
Meeting and not revoked will be exercised. All shares
represented by proxy will be voted, and where a shareholder
specifies by means of his or her proxy a choice with respect to
any matter to be acted upon, the shares will be voted in
accordance with the specifications so made. If you do not
specify on your proxy card how you want to vote your shares and
authority to vote is not specifically withheld, we will vote
your shares as follows: (i)&nbsp;&#147;for&#148; the election of
the persons named in the proxy to serve as directors;
(ii)&nbsp;&#147;for&#148; the proposal to ratify and approve the
Company&#146;s 2003 Employee Stock Incentive Plan;
(iii)&nbsp;&#147;against&#148; the shareholder proposal to adopt
a bylaw provision to subject to shareholder vote on the next
shareholder ballot, the adoption or extension of any current or
future poison pill and, once adopted, to subject to shareholder
vote on the next shareholder ballot the removal of this bylaw
provision; and (iv)&nbsp;&#147;for&#148; the ratification of
Deloitte &#38; Touche LLP (&#147;Deloitte &#38; Touche&#148;) as
the independent auditors of the Company. Shareholders who hold
their shares in &#147;street name&#148; (i.e., in the name of a
bank, broker or other record holder) must vote their shares in
the manner prescribed by their brokers.
</FONT>

<P align="left">
<B><FONT size="2">How You Can Revoke Your Proxy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You can revoke your proxy at any time before it
is exercised in one of three ways:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(1)&nbsp;by delivering to the Secretary of the
Company a written instrument of revocation bearing a date later
than the date of the proxy.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(2)&nbsp;by duly executing and delivering to the
Secretary of the Company a subsequent proxy relating to the same
shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(3)&nbsp;by attending the meeting and voting in
person, provided that the shareholder notifies the Secretary at
the meeting of his or her intention to vote in person at any
time prior to the voting of the proxy.
</FONT>

<P align="left">
<B><FONT size="2">Required Votes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A plurality of votes cast by shareholders who are
either present in person or represented by proxy at the meeting
is required to elect the seven&nbsp;(7) nominees for Director
under Proposal&nbsp;1. Approval of proposals&nbsp;2, 3 and 4
requires the affirmative vote of a majority of the shares
present and entitled to vote on these proposals at the Annual
Meeting. The total number of votes that could be cast at the
meeting is the number of votes actually cast plus the number of
abstentions. Abstentions are counted as &#147;shares
present&#148; at the meeting for
</FONT>

<P align="center">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">purposes of determining whether a quorum exists
and have the effect of a vote &#147;against&#148; any matter as
to which they are specified. Proxies submitted by brokers that
do not indicate a vote for some or all of the proposals because
they do not have discretionary voting authority and have not
received instructions as to how to vote on these proposals
(so-called &#147;broker non-votes&#148;) are also considered
&#147;shares present&#148; and will have the affect a vote
against the proposal for which no vote is indicated.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Other Matters to Be Acted Upon at the
Meeting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We do not know of any matters other than the
election of directors, the proposal to ratify and approve the
2003 Employee Stock Incentive Plan, the shareholder proposal,
and the ratification of independent auditors that are expected
to be presented for consideration at the Annual Meeting. If any
other matters are properly presented at the meeting, the shares
represented by proxies will be voted in accordance with the
judgment of the persons voting those shares.
</FONT>

<P align="left">
<B><FONT size="2">Solicitation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cost of soliciting proxies, including the
cost of preparing and mailing the Notice and Proxy Statement,
will be paid by the Company. Solicitation will be primarily by
mailing this Proxy Statement to all shareholders entitled to
vote at the meeting. Proxies may also be solicited by officers
and directors of the Company personally or by telephone or
facsimile, without additional compensation. The Company may
reimburse brokers, banks and others holding shares in their
names for others for the cost of forwarding proxy materials and
obtaining proxies from beneficial owners.
</FONT>

<!-- link1 "ELECTION OF DIRECTORS (PROPOSAL NO. 1)" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center">
<B><FONT size="2">ELECTION OF DIRECTORS</FONT></B>

<P align="center">
<B><FONT size="2">(PROPOSAL NO.&nbsp;1)</FONT></B>

<P align="left">
<B><FONT size="2">General Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s current directors are Jonathan
G. Ornstein, Daniel J. Altobello, Robert Beleson, General Ronald
R. Fogleman, Joseph L. Manson, Maurice A. Parker, and Julie
Silcock. Their terms expire upon the election and qualification
of their successors at the Annual Meeting. The Board has
nominated each of these current directors as nominees for
election as directors in the election to be held at the Annual
Meeting. The Board intends to vote its proxies for the election
of its nominees, for a term to expire at the Company&#146;s 2005
Annual Meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If unforeseen circumstances make it necessary for
the Board of Directors to substitute another person for any of
the nominees, we will vote your shares &#147;for&#148; that
other person, or, if no substitute is selected by the Board
prior to or at the Annual Meeting, for a motion to reduce the
present membership of the Board to the number of nominees
available. The information concerning the nominees and their
share holdings in the Company has been furnished by the nominees
to the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The seven (7)&nbsp;nominees receiving a plurality
of votes by shares represented and entitled to vote at the
Annual Meeting, if a quorum is present, will be elected as
directors of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the names and ages
of the directors of the Company and certain additional
information:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Position</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan G. Ornstein
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman of the Board
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Daniel J. Altobello
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert Beleson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald R. Fogleman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joseph L. Manson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maurice A. Parker
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Julie Silcock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">2
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Directors</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Biographical information regarding the
Company&#146;s directors is set forth below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Jonathan G. Ornstein
</FONT></I><FONT size="2">was appointed President and Chief
Executive Officer of the Company effective May&nbsp;1, 1998.
Mr.&nbsp;Ornstein became a director in January 1998.
Mr.&nbsp;Ornstein assumed the role of Chairman of the Board in
June 1999. On June&nbsp;21, 2000, Mr.&nbsp;Ornstein relinquished
his position as President of the Company. From April 1996 until
joining the Company as Chief Executive Officer,
Mr.&nbsp;Ornstein served as President and Chief Executive
Officer and Chairman of Virgin Express S.A./ N.V., a European
airline. From 1995 to April 1996, Mr.&nbsp;Ornstein served as
Chief Executive Officer of Virgin Express Holdings, Inc.
Mr.&nbsp;Ornstein joined Continental Express Airlines, Inc., as
President and Chief Executive Officer, in July 1994 and, in
November 1994, was named Senior Vice President, Airport Services
at Continental Airlines, Inc. Mr.&nbsp;Ornstein was previously
employed by the Company from 1988 to 1994, as Executive Vice
President and as President of the Company&#146;s subsidiary,
WestAir Holding, Inc.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Daniel J. Altobello
</FONT></I><FONT size="2">has served as a director of the
Company since January 1998. Mr.&nbsp;Altobello is the retired
Chairman of LSG SkyChefs and Onex foodservices, the parent
corporation of Caterair International, Inc., and LSG/ SKY Chefs.
From 1989 to 1995, Mr.&nbsp;Altobello served as Chairman,
President and Chief Executive Officer of Caterair International
Corporation. From 1979 to 1989, he held various managerial
positions with the food service management and in-flight
catering divisions of Marriott Corporation, including Executive
Vice President of Marriott Corporation and President of Marriott
Airport Operations Group. Mr.&nbsp;Altobello began his
management career at Georgetown University as Vice President of
Administration Services. He is a member of the board of
directors of each of the following companies: American
Management Systems, Inc., World Airways, Inc., Friedman,
Billings and Ramsey Group, Inc. and Thayer Capital Partners.
Mr.&nbsp;Altobello is also a trustee of Loyola Foundation, Inc.
and Mt. Holyoke College.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Robert Beleson </FONT></I><FONT size="2">was
elected as a director of the Company on October&nbsp;23, 2003.
Since May 2002, Mr.&nbsp;Beleson has provided marketing and
strategic planning consulting services to select clients in the
aviation and wine and spirit industries. This consulting service
was formally organized as Brookfield Marketing, LLC on
October&nbsp;1, 2003. From July 2001 to April 2002 he served as
Chief Marketing Officer for Avolar, a former Division of United
Airlines. From March 1996 to December 2000 he served as
President of M. Shanken Communications, New York, N.Y. From May
1991 to February 1996 he served as Chief Marketing Officer for
Playboy Enterprises. Mr.&nbsp;Beleson received a B.S. from
Cornell University School of Industrial and Labor Relations and
an M.B.A. from Harvard Business School.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">General Ronald R. Fogleman, U.S.A.F.
</FONT></I><FONT size="2">retired, has been a director of the
Company since January 1998. Since 1997, Gen. Fogleman has been
President and Chief Operating Officer of B Bar J Cattle Company
and President and Chief Operating Officer of Durango Aerospace,
Inc., an international aviation consulting firm. In September
1997, he retired from the Air Force with the rank of General. He
served as Chief of Staff of the United States Air Force from
1994 until 1997 and as Commander-in-Chief of the United States
Transportation Command from 1992 until 1994. General Fogleman
currently serves on the board of directors of each of the
following companies: AAR Corporation; Rolls Royce of North
America; Valeant Pharmaceuticals International (formerly ICN
Pharmaceuticals, Inc.); and World Airways.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Joseph L. Manson </FONT></I><FONT size="2">has
been a director of the Company since July 2001. Mr.&nbsp;Manson
is a partner in the Washington, D.C. office of the law firm
Piper Rudnick (which recently merged with Verner Lipfert
Burnhard McPherson and Hand), where he has been employed since
1975.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Maurice A. Parker
</FONT></I><FONT size="2">has been a director of the Company
since November 1998. From 1978 to January 1997, Mr.&nbsp;Parker
served as a Federal Mediator for the National Mediation Board of
the United States government. From 1997 to the present,
Mr.&nbsp;Parker has worked as an independent arbitrator,
mediator and consultant. In 1998, Mr.&nbsp;Parker obtained his
Doctorate in Jurisprudence from South Texas College of Law.
Mr.&nbsp;Parker has served as Executive Director of Regional
Aviation Partners since April 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Julie Silcock </FONT></I><FONT size="2">has
served as a director of the Company since July 2001. Since
November 2000, Ms.&nbsp;Silcock has been the Managing Director
and head of Southwest Investment Banking of Citigroup Global
Market, Inc. From August 1997 to November 2000, she served as
Managing Director at Donaldson, Lufkin&nbsp;&#38;
</FONT>

<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Jenrette. From January 1984 to August 1997, she
was an investment banker with Bear, Stearns&nbsp;&#38; Co.,
Inc., most recently as a Senior Managing Director.
</FONT>
</DIV>

<!-- link1 "BOARD AND COMMITTEE MEETINGS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center">
<B><FONT size="2">BOARD AND COMMITTEE MEETINGS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Information concerning the three Committees
maintained by the Board of Directors is set forth below. The
Board Committees currently consist only of Directors who are not
employees of the Company and who are &#147;independent&#148;
within the meaning of the listing standards of the NASD.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board held six meetings during the 2003
fiscal year. No director attended less than 75% of the Board
meetings while serving as such director, or less than 75% of all
committee meetings on which he or she served as a committee
member.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The audit, nominating and compensation committees
are the standing committees of the Board. The fiscal year 2003
committees are comprised as follows<SUP>1</SUP>:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Audit</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Nominating</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald R. Fogleman*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Maurice Parker*
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Daniel J. Altobello*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Julie Silcock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">James Swigart
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Joseph Manson
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joseph Manson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Daniel J. Altobello
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Maurice Parker
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current committees are comprised as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Nominating/</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Audit</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Corporate Governance</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald R. Fogleman*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Daniel J. Altobello*
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Daniel J. Altobello*
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Julie Silcock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Julie Silcock
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Julie Silcock
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert Beleson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Robert Beleson
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Robert Beleson
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*</FONT></TD>
    <TD align="left">
    <FONT size="2">Chairman
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On November&nbsp;19, 2003, the standing
    committees were reorganized. The Company merged the Nominating
    Committee with a newly established Corporate Governance
    Committee, creating a Nominating/ Corporate Governance Committee
    with three Committee members.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The audit committee of the Board (the &#147;Audit
Committee&#148;) held seven meetings during fiscal 2003. The
Audit Committee, among other things, recommends the
Company&#146;s independent auditors, reviews the Company&#146;s
financial statements, reports and recommendations regarding the
adequacy of internal accounting controls made by the independent
auditors and considers such other matters with respect to the
accounting, auditing and financial reporting procedures as it
may deem appropriate or as may be brought to its attention.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee acts under a written charter
adopted and approved by the Board in May 2000. A copy of the
original Audit Committee Charter is attached as an exhibit to
the Company&#146;s 2001 Annual Meeting Proxy Statement. The
Charter was amended in April 2002 and the Amended Charter is
attached as an exhibit to the Company&#146;s 2003 Annual Meeting
Proxy Statement. The Audit Committee is composed of outside
directors who are not officers or employees of the Company or
its subsidiaries. In the opinion of the Board and as
&#147;independent&#148; is defined under current standards of
the NASD (including the heightened independence requirements of
audit committee members), these directors are independent of
management and free of any relationship that would interfere
with their exercise of independent judgment as member of this
committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The nominating committee of the Board (the
&#147;Nominating Committee&#148;) did not meet in fiscal 2003.
In November 2003, the Nominating Committee was merged with a
newly established corporate governance committee, creating the
Nominating/ Corporate Governance Committee. The Nominating/
Corporate Governance Committee will continue to be responsible
for identifying and nominating individuals qualified to serve on
the Board and the Committees of the Board, as well as reviewing
the effective corporate governance policies and procedures and
recommending any applicable modifications thereto. The
Nominating/ Corporate Governance Committee will consider, but is
not required to approve, nominations for directors by
shareholders
</FONT>

<P align="center"><FONT size="2">4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">for any annual meeting of the Company, provided a
written recommendation is received by the Company no later than
the date shareholder proposals must be submitted for
consideration prior to such annual meeting.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The compensation committee of the Board (the
&#147;Compensation Committee&#148;) held two meetings during the
2003 fiscal year. The Compensation Committee is responsible for
allocating cash compensation and stock options to senior
executive officers of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">It is expected that all current committee members
will be nominated for re-election to such committees at a Board
meeting to be held immediately following the Annual Meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors adopted a Code of Ethics
in fiscal 2003, which applies to the Company&#146;s executive
officers, as well as the executive officers of the
Company&#146;s subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You can obtain copies of our current committee
charters and Code of Ethics in the &#147;Corporate
Governance&#148; section of our website
(<I>www.mesa-air.com</I>) or by writing to our Corporate
Secretary at 410&nbsp;North 44th&nbsp;Street, Suite&nbsp;700,
Phoenix, Arizona 85008.
</FONT>

<!-- link1 "COMPENSATION OF DIRECTORS" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center">
<B><FONT size="2">COMPENSATION OF DIRECTORS</FONT></B>

<P align="left">
<B><FONT size="2">Fees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following fees were paid to Directors who
were not employees of the Company during fiscal 2003. Directors
who are full-time employees of the Company receive no additional
compensation for serving as directors. Board members also are
reimbursed for all expenses associated with attending Board or
Committee meetings.
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Annual Retainer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fee for each Board meeting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fee for each telephonic meeting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fee for each Committee meeting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Stock Options</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Outside Director&#146;s Option Plan,
each non-employee director receives an annual grant of options
to purchase 3,000&nbsp;shares of Common Stock, plus the number
of options to purchase Common Stock equivalent to a cash value
of $20,000 as calculated pursuant to the Black-Scholes Valuation
Method (collectively, the &#147;Formula Amount&#148;), at a
risk-free rate of a ten-year zero coupon bond. Each non-employee
director receives an additional Formula Amount on April 1st of
each year thereafter. Upon being appointed a non-employee
director after April&nbsp;1, such director is granted a pro-rata
portion of the Formula Amount and receives options pursuant to
the plan on April 1st of each succeeding year. The amount of pro
rata options granted to each new non-employee director is
calculated by dividing the number of days prior to April 1st by
the number of days in the calendar year and multiplying the
quotient by the Formula Amount.
</FONT>

<P align="left">
<B><FONT size="2">Other Benefits</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each non-employee director, and certain family
members of such director, receives free travel on Mesa Air and
free or reduced-fare travel on certain air carriers at no cost
to the Company or the director. The Company believes that the
directors&#146; use of free air travel is &#147;de minimis&#148;
and did not maintain any records of non-employee directors&#146;
travel during fiscal 2003.
</FONT>

<!-- link1 "COMPENSATION COMMITTEE INTERLOCKS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">COMPENSATION COMMITTEE INTERLOCKS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the fiscal year 2003, the Compensation
Committee consisted of Messrs.&nbsp;Altobello, Parker and
Manson. None of the members of the committee held any executive
officer position or other employment with the Company prior to
or during such service. <I>See </I>Certain Relationships and
Related Transactions later in this proxy statement for a
discussion of payments made by the Company to certain entities
in which Messrs.&nbsp;Manson and Parker have an interest.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "REPORT OF AUDIT COMMITTEE OF THE BOARD OF DIRECTORS" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center">
<B><FONT size="2">REPORT OF AUDIT COMMITTEE OF THE BOARD OF
DIRECTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee assists the Board in
fulfilling its responsibility for oversight of the internal
control, accounting, auditing and financial reporting practices
of the Company. Specific responsibilities of the Audit Committee
include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reviewing and discussing the audited financial
    statements with management;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">discussing with the Company&#146;s independent
    auditors information relating to the auditors&#146; judgments
    about the quality of the Company&#146;s accounting policies and
    financial reporting practices;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">recommending to the Board that the Company
    include the audited financials in its Annual Report on
    Form&nbsp;10-K; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">overseeing compliance with the Securities and
    Exchange Commission requirements for disclosure of
    auditors&#146; services and activities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee regularly meets with management to
consider the adequacy of the Company&#146;s internal controls
and the integrity of it financial reporting. The Committee
discusses these matters with the Company&#146;s independent
auditors and with appropriate Company financial personnel and
internal auditors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee regularly meets privately with
management, the independent auditors and the internal auditors.
Each of the independent auditors has unrestricted access to the
Committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee retains and, if circumstances
warrant, replaces the independent auditors and regularly reviews
their performance and independence from management. The
Committee also pre-approves all audit and permitted non-audit
services and related fees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors has determined that none
of the Directors serving on the Committee has a relationship to
the Company that may interfere with their independence from the
Company and its management. As a result, each Director who
serves on the Committee is &#147;independent&#148; as required
by NASD listing standards.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors has adopted a written
charter setting out the roles and responsibilities the Committee
is to perform. The Board has determined that Julie Silcock of
the Audit Committee is an &#147;audit committee financial
expert,&#148; as such term is defined in Item&nbsp;401(h) of
Regulation&nbsp;S-K.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management has primary responsibility for the
Company&#146;s financial statements and the overall reporting
process, including the Company&#146;s system of internal
controls.
</FONT>

<P align="left">
<B><FONT size="2">Review of Audited Financial
Statements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee has reviewed the
Company&#146;s financial statements for the fiscal year ended
September&nbsp;30, 2003, as audited by Deloitte&nbsp;&#38;
Touche, the Company&#146;s independent auditors, and has
discussed these financial statements with management. In
addition, the Audit Committee has discussed with
Deloitte&nbsp;&#38; Touche the matters required to be discussed
by Statement of Auditing Standards&nbsp;No.&nbsp;61, as amended,
regarding the codification of statements on auditing standards.
Furthermore, the Audit Committee has received the written
disclosures and the letter from Deloitte&nbsp;&#38; Touche
required by the Independence Standards Board Standard No.&nbsp;1
and has discussed with Deloitte &#38; Touche its independence.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In reliance on the reviews and discussions
referred to above, the Audit Committee recommended to the Board
that the audited financial statements for the fiscal year ended
September&nbsp;30, 2003 be included in the Company&#146;s Annual
Report on Form&nbsp;10-K, for filing with the Securities and
Exchange Commission.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The members of the Audit Committee are not
professionally engaged in the practice of auditing or
accounting. Members of the Audit Committee rely, without
independent verification, on the information provided to them
and on the representations made by management and the
independent accountants. Accordingly, the Audit Committee&#146;s
oversight does not provide an independent basis to determine
that management has maintained procedures designed to assure
compliance with accounting standards and applicable laws and
regulations. Furthermore, the Audit Committee&#146;s
considerations and discussions referred to above do not assure
that the audit of the Company&#146;s financial statements has
been carried out in accordance with generally accepted auditing
standards, that the financial statements are presented in
accordance with
</FONT>

<P align="center"><FONT size="2">6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">generally accepted accounting principles and that
the Company&#146;s independent accountants are in fact
&#147;independent.&#148;
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">AUDIT COMMITTEE
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Ronald R. Fogleman
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Julie Silcock
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Joseph L. Manson
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">DISCLOSURE OF AUDIT AND NON-AUDIT
FEES</FONT></B>

<P align="left">
<B><FONT size="2">Pre-approval Policy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August 2003, the Audit Committee adopted a
Pre-approval Policy (&#147;Policy&#148;) governing the approval
of all audit and non-audit services performed by the independent
auditor in order to ensure that the performance of such services
does not impair the auditor&#146;s independence.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">According to the Policy, the Audit Committee will
annually review and pre-approve the services and fees that may
be provided by the independent auditor during the following
year. The Policy specifically describes the services and fees
related to the annual audit, other services that are
audit-related, preparation of tax returns and tax related
compliance services and all other services that have the general
pre-approval of the Audit Committee. The term of any general
pre-approval is 12&nbsp;months from the date of pre-approval,
unless the Audit Committee specifically provides for a different
period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any service to be provided by the independent
auditor that has not received general pre-approval under the
Policy is required to be submitted to the Audit Committee for
approval prior to the commencement of a substantial portion of
the engagement. Any proposed service exceeding pre-approved cost
levels is also required to be submitted to the Audit Committee
for specific approval.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee will revise the list of
general pre-approved services from time to time based on
subsequent determinations. The Committee does not delegate its
responsibilities to pre-approve services performed by the
independent auditor to management.
</FONT>

<P align="left">
<B><FONT size="2">Fees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the aggregate fees
billed by Deloitte&nbsp;&#38; Touche for fiscal 2002 and 2003:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Financial</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Information Systems</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Design and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Audit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Audit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Implementation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fees(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Related(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Tax</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fees</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fees</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">441,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">702,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">463,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">487,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,209,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes fees for the annual audit and quarterly
    reviews.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes fees for services for miscellaneous
    compliance audits and other SEC filings.
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center">
<B><FONT size="2">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information regarding the beneficial ownership of Common Stock
as of September&nbsp;30, 2003 by (i)&nbsp;each director of the
Company, (ii)&nbsp;each of the Company&#146;s officers named in
the Summary Compensation Table (collectively, the &#147;Named
Executive Officers&#148;), (iii)&nbsp;each person who is known
by the Company to be the beneficial owner of more than five
percent of the Company&#146;s outstanding
</FONT>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Common Stock, and (iv)&nbsp;all directors and
executive officers as a group. Except as otherwise indicated
below, each person named has sole voting and investment power
with respect to the shares indicated.
</FONT>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Amount and Nature of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Beneficial Ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name and Address of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options/</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Beneficial Owner</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Warrants(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent(1)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State Street Research&nbsp;&#38; Management Co
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,159,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,159,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">One Financial Center, 30th&nbsp;Floor
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Boston, MA 02111-2690
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Putnam, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,466,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,466,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">One Post Office Square
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Boston, MA 02109
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Putnam Investment Management, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,200,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,200,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">One Post Office Square
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Boston, MA 02109
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dimensional Fund Advisors Inc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,768,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,768,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1299&nbsp;Ocean Avenue, 11th&nbsp;Floor
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Santa Monica, CA 90401
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Directors</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan G. Ornstein(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,614,846</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,737,846</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">James E. Swigart(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,923</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,230</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">185,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Daniel J. Altobello
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald R. Fogleman(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,657</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joseph L. Manson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,578</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,578</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert Beleson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maurice Parker
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Julie Silcock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,578</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,578</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Officers</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael J. Lotz
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">539,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">550,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">George Murnane III
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael Ferverda
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert S. Stone
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Brian S. Gillman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">F. Carter Leake
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All directors and officers as a group<BR>
    (15 Individuals)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">288,123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,967,738</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,255,861</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes options and warrants exercisable on
    September&nbsp;30, 2003 or within 60&nbsp;days thereafter.
    Holdings of less than 1% are indicated by &#147;*&#148;. Based
    upon 31,743,807&nbsp;shares issued and outstanding as of
    September&nbsp;30, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 63,000&nbsp;shares held by
    Mr.&nbsp;Ornstein&#146;s children, mother and spouse.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 5,629&nbsp;shares held by
    Mr.&nbsp;Swigart&#146;s wife and children.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 1,200&nbsp;shares of common stock held
    by B&nbsp;Bar&nbsp;J&nbsp;Pension Fund, which is controlled by
    Mr.&nbsp;Fogleman.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Compliance with Section&nbsp;16(a) of the
Securities Exchange Act of 1934</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Section&nbsp;16(a) of the Securities Exchange Act
of 1934, as amended, requires the Company&#146;s directors and
executive officers, as well as persons beneficially owning more
than 10% of the outstanding Common Stock, to file certain
reports of ownership with the Securities and Exchange Commission
within specified time periods. Such officers, directors and
shareholders are also required by Securities and Exchange
Commission rules to furnish the Company with copies of all
Section&nbsp;16(a) forms they file.
</FONT>

<P align="center"><FONT size="2">8
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based solely on its review of such forms all
requirements received by it, or written representations from
certain reporting persons, the Company believes that between
October&nbsp;1, 2002 and September&nbsp;30, 2003, all
Section&nbsp;16(a) filing requirements applicable to its
officers, directors and 10% shareholders were met except for the
filing of one Form&nbsp;4 by Mr.&nbsp;Ferverda in August 2003
and the filing of one Form&nbsp;4 for Mr.&nbsp;Ornstein in
September 2003.
</FONT>

<!-- link1 "EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center">
<B><FONT size="2">EXECUTIVE COMPENSATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth compensation for
fiscal years 2003, 2003 and 2001 of the Chief Executive Officer
and the four other most highly compensated executive officers of
the Company whose total annual salary and bonuses exceeded
$100,000 at the end of fiscal 2003 (the &#147;Named Executive
Officers&#148;).
</FONT>

<P align="center">
<B><FONT size="2">Summary Compensation Table</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Annual Compensation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other Annual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">All Other</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name and Principal Position</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Salary ($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Bonus ($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($) (1)(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options (#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($) (3)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan G. Ornstein
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">420,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Chief Executive Officer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">420,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">366,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael J. Lotz
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President and
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,264</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Chief Operating Officer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">205,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134,769</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">George Murnane&nbsp;III(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">145,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Executive Vice President
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97,038</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Brian S. Gillman(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vice President&nbsp;&#38;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,266</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General Counsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,692</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">F. Carter Leake(6)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior Vice President,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">US&nbsp;Airways Express
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">96,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">With respect to Jonathan Ornstein, amounts
    reported for the fiscal years ended 2001, 2002 and 2003 include
    deferred compensation of $108,333, $200,000 and $200,000,
    respectively, and for fiscal year 2003 personal use of company
    aircraft of $38,786, disability and life insurance premium
    payments in the amount of $8,451 and $12,545 of a
    non-accountable expense allowance. With respect to Michael Lotz,
    amounts reported for the fiscal years ended 2001, 2002 and 2003
    include deferred compensation of $131,250, $175,000 and 175,000,
    respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Except for Mr.&nbsp;Ornstein in fiscal year 2003,
    does not reflect perquisites since the dollar value of these
    personal benefits in each reported year did not exceed the
    lesser of $50,000 or ten percent of each executive
    officer&#146;s salary and bonus amounts.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">These amounts include the Company&#146;s vested
    and non-vested contributions to the individual named executive
    officer&#146;s 401(k) plan account. Under the Company&#146;s
    401(k) plan, employees may contribute up to 15% of their annual
    salary and bonus up to a specified maximum. The Company
    currently makes matching contributions equal to 25% of an
    employee&#146;s contributions (including officers), with a cap
    of 10% of the employee&#146;s annual compensation
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Murnane joined the Company on
    January&nbsp;16, 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Gillman joined the Company on
    February&nbsp;5, 2001.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Leake joined the Company on
    January&nbsp;11, 2001.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">9
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Option Grants in Last Fiscal Year" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center">
<B><FONT size="2">Option Grants in Last Fiscal Year</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth for each Named
Executive Officer information concerning individual grants of
stock options during the 2003 fiscal year.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Potential Realizable</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Value at Assumed</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Annual Rates of Stock</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Price Appreciation for</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Granted To</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Option Term</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Employees in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Base Price(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Expiration</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Granted(1) (#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fiscal Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($/share)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">5%(3) ($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">10%(3) ($)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan Ornstein
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11/20/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,896,469</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,292,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mike Lotz
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11/20/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,264,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,194,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">George Murnane III
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11/20/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">877,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Brian S. Gillman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11/20/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">379,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">658,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">F. Carter Leake
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11/20/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">548,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Option grants under the 1996 Stock Option Plan
    and the 2001 Key Officer Plan. The shares underlying option
    grants made pursuant to the Mesa Airline Stock Option Plan vest
    in annual 1/3 increments beginning one year after the date of
    the grant.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The exercise price was set at 100% of the closing
    price of the Common Stock on the grant date, as reported on the
    NASDAQ National Market.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Potential realizable values shown above represent
    the potential gains based upon annual compound stock price
    appreciation of 5% and 10% from October&nbsp;1, 2003 through the
    full option term. The actual value realized, if any, on stock
    option exercises will be dependent upon overall market
    conditions and the future performance of the Company and the
    Common Stock. There is no assurance that the actual value
    realized will approximate the amounts reflected in this table.
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "OPTION EXERCISES" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center">
<B><FONT size="2">OPTION EXERCISES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the number of
shares covered by both exercisable and unexercisable stock
options as of the fiscal year ended September&nbsp;30, 2003,
together with the values for in-the-money options which
represent the positive spread between the exercise price of any
such outstanding stock and the fiscal year end price of the
Common Stock.
</FONT>

<P align="center">
<B><FONT size="2">Aggregate Option Exercises In Last Fiscal Year
And Year End Option Values</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value of Unexercised</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying Unexercised</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">In-The-Money</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options at</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September&nbsp;30, 2003 (#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September&nbsp;30, 2003 ($)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Acquired on</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable/</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable/</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise (#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Realized ($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable(1)</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan G. Ornstein
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229,680</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,220,638/394,208</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,764,266/1,889,449</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael J. Lotz
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">279,930/259,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,517,539/1,459,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">George Murnane III
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,475/140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">252,691/724,800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Brian S. Gillman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,781</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,000/70,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">209,680/416,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">F. Carter Leake
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,000/70,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">223,800/373,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on the closing price of the Common Stock on
    September&nbsp;30, 2003 of $11.12 per share, as reported by the
    NASDAQ National Market.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Amendment or Repricing of Options</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the 2003 fiscal year, the Company did not
amend or reprice any stock options held by executive officers of
the Company.
</FONT>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "EQUITY COMPENSATION PLANS" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center">
<B><FONT size="2">EQUITY COMPENSATION PLANS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information as of September&nbsp;30, 2003, concerning
outstanding options and rights to purchase Common Stock granted
to participants in all of the Company&#146;s equity compensation
plans (including the Outside Director&#146;s Option Plan) and
the number of shares of Common Stock remaining available for
issuance under such equity compensation plans.
</FONT>

<P align="center">
<B><FONT size="2">Equity Compensation Plan Information</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Remaining Available</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for Future Issuance</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Under Equity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Be Issued upon</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted-Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation Plans</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise Price of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Excluding</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding Options,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding Options,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities Reflected</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Warrants and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Warrants and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in Column (a))</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Plan Category</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(b)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(c)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity compensation plans approved by security
    holders(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,921,947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">634,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity compensation plans not approved by
    security holders(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,421,947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,134,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes the Outside Directors&#146; Option Plan,
    as amended, which was approved by the shareholders on
    February&nbsp;11, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Board of Directors adopted the 2001 Key
    Officer Plan on July&nbsp;13, 2001. An aggregate of 1,750,000
    shares are authorized for issuance under this plan. The
    Company&#146;s CEO and President are the only persons eligible
    to participate in the Plan. Options are granted pursuant to the
    terms of their respective employment contracts.
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "EMPLOYMENT AND CHANGE IN CONTROL ARRANGEMENTS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<P align="center">
<B><FONT size="2">EMPLOYMENT AND CHANGE IN CONTROL
ARRANGEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Chief Executive Officer; the President and
Chief Operating Officer; the Executive Vice President and Chief
Financial Officer; the Senior Vice President, US Airways
Express, and the Vice President and General Counsel have each
entered into an employment agreement with the Company.
</FONT>

<P align="left">
<B><FONT size="2">CEO Employment Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective as of March&nbsp;14, 2001, Jonathan G.
Ornstein and the Company entered into a new employment
agreement, in which Mr.&nbsp;Ornstein agreed to serve as the
Chief Executive Officer of the Company for a term of five
(5)&nbsp;years ending March&nbsp;13, 2006. Under
Mr.&nbsp;Ornstein&#146;s agreement, he receives a base salary of
$200,000. The base salary is subject to increase based on
increases in the Consumer Price Index, and is subject to annual
discretionary increases upon review by the Board.
Mr.&nbsp;Ornstein also is entitled to an annual bonus, paid
quarterly, based on annual performance criteria as set forth in
the agreement, which may range from $52,500 to $420,000.
Additionally, the Board may approve discretionary bonuses. Upon
execution of the agreement and on March 14th of each year
thereafter during the term of the agreement, the Company is
obligated to contribute $200,000, as deferred compensation, to
an account for the benefit of Mr.&nbsp;Ornstein. The Company
also is obligated to provide Mr.&nbsp;Ornstein with $5,000,000
of term life insurance, the limited use of Company aircraft, and
other customary fringe benefits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Ornstein&#146;s employment agreement
also provides for the initial grant of stock options to purchase
150,000 shares of Common Stock, with the options vesting in
one-third increments over a three-year period, and additional
annual option grants of 150,000 shares throughout the term of
the agreement. The exercise price for each option is determined
by the market price for the Common Stock on the date the option
is granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The agreement provides that upon
Mr.&nbsp;Ornstein&#146;s disability, as defined in the
agreement, he will receive on a monthly basis, his base salary,
plus an annualized amount equal to his historical bonuses. The
Company
</FONT>

<P align="center"><FONT size="2">11
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">will make such disability payments for as long as
the disability lasts, up to 48&nbsp;months, and payments will
continue to be made even if they extend beyond the term of the
agreement. The Company is required to fund a portion of the
payments with disability insurance.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Ornstein may terminate the agreement
following the occurrence of an event constituting &#147;Good
Reason.&#148; &#147;Good Reason&#148; is defined as the
occurrence of any of the following circumstances: (i)&nbsp;any
change by the Company in Mr. Ornstein&#146;s title, or any
significant diminishment in his function, duties or
responsibilities, (ii)&nbsp;any material uncured breach by the
Company; or (iii)&nbsp;a Change in Control (as defined in the
agreement) and the expiration of 90 days.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;Ornstein&#146;s employment is
terminated (a)&nbsp;by the Company without Cause (as defined in
the agreement), (b)&nbsp;by Mr.&nbsp;Ornstein for Good Reason,
(c)&nbsp;by Mr.&nbsp;Ornstein after March&nbsp;13, 2004, or
(d)&nbsp;upon expiration of the term of the agreement, the
Company is required to pay all normal accrued amounts, plus
$400,000 (that is, twice the normal deferred compensation
payment) on March 14th of each year through 2005 in lieu of
payments that would have been made under the deferred
compensation plan, and severance pay for 36&nbsp;months at the
rate of twice his normal salary and twice his historical
bonuses. In addition, the Company has agreed to enter into a
consulting agreement with Mr.&nbsp;Ornstein, at
Mr.&nbsp;Ornstein&#146;s option, the terms of which will provide
for Mr.&nbsp;Ornstein&#146;s retention as a consultant for a
period of 10&nbsp;years from its effective date at the rate of
$200,000 per year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any payments received by Mr.&nbsp;Ornstein
under the agreement are treated as &#147;golden parachute&#148;
payments and are subjected to the excise tax imposed by
Section&nbsp;4999 of the Internal Revenue Code,
Mr.&nbsp;Ornstein is entitled to receive &#147;gross up&#148;
payments sufficient to cover the excise tax.
</FONT>

<P align="left">
<B><FONT size="2">President and Chief Operating Officer
Employment Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective as of March&nbsp;14, 2001, Michael J.
Lotz and the Company entered into a new employment agreement, in
which Mr.&nbsp;Lotz agreed to serve as the President and Chief
Operating Officer of the Company for a term of five
(5)&nbsp;years ending January&nbsp;1, 2006. Under
Mr.&nbsp;Lotz&#146;s agreement, he receives a base salary of
$175,000. The base salary is subject to increase based on
increases in the Consumer Price Index, and is subject to annual
discretionary increases upon review by the Board. Mr.&nbsp;Lotz
also is entitled to an annual bonus, paid quarterly based on
annual performance criteria as set forth in the agreement, which
may range from $40,000 to $320,000. Additionally, the Board may
approve discretionary bonuses. Upon execution of the agreement
and on March&nbsp;14th of each year thereafter during the term
of the agreement, the Company is obligated to contribute
$175,000, as deferred compensation, to an account for the
benefit of Mr.&nbsp;Lotz. The Company also is obligated to
provide Mr.&nbsp;Lotz with $2,000,000 of term life insurance,
the limited use of Company aircraft, and other customary fringe
benefits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Lotz&#146;s employment agreement also
provides for the initial grant of stock options to purchase
100,000&nbsp;shares of Common Stock, with the options vesting in
one-third increments over a three-year period, and additional
annual option grants of 100,000&nbsp;shares throughout the term
of the agreement. The option exercise price for each option is
determined by the market price for the Common Stock on the date
the option is granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The agreement provides that upon
Mr.&nbsp;Lotz&#146;s disability, as defined in the agreement,
Mr.&nbsp;Lotz will receive on a monthly basis, his base salary,
plus an annualized amount equal to his historical bonuses. The
Company will make such disability payments for as long as the
disability lasts, up to 48&nbsp;months, and payments will
continue to be made even if they extend beyond the term of the
agreement. The Company is required to fund a portion of the
payments with disability insurance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Lotz may terminate the agreement
following the occurrence of an event constituting &#147;Good
Reason.&#148; &#147;Good Reason&#148; is defined as the
occurrence of any of the following circumstances: (i)&nbsp;any
change by the Company in Mr.&nbsp;Lotz&#146;s title, or any
significant diminishment in his function, duties or
responsibilities, (ii)&nbsp;any material uncured breach by the
Company; or (iii)&nbsp;a Change in Control (as defined in the
agreement) and the expiration of 90&nbsp;days.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;Lotz&#146;s employment is terminated
(a)&nbsp;by the Company without Cause (as defined in the
agreement), (b)&nbsp;by Mr.&nbsp;Lotz for Good Reason,
(c)&nbsp;by Mr.&nbsp;Lotz after January&nbsp;1, 2004, or
(d)&nbsp;upon expiration
</FONT>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">of the term of the agreement, the Company is
required to pay all normal accrued amounts, plus $350,000 (that
is, twice the normal deferred compensation payment) on
March&nbsp;14th of each year through 2005 in lieu of payments
that would have been made under the deferred compensation plan,
and severance pay for 36&nbsp;months at the rate of twice his
normal salary and twice his historical bonuses. In addition, the
Company has agreed to enter into a consulting agreement with
Mr.&nbsp;Lotz, at Mr.&nbsp;Lotz&#146;s option, the terms of
which will provide for Mr.&nbsp;Lotz&#146;s retention as a
consultant for a period of 10&nbsp;years from its effective date
at the rate of $150,000 per year.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any payments received by Mr.&nbsp;Lotz under
the agreement are treated as &#147;golden parachute&#148;
payments and are subjected to the excise tax imposed by
Section&nbsp;4999 of the Internal Revenue Code, Mr.&nbsp;Lotz is
entitled to receive &#147;gross up&#148; payments sufficient to
cover the excise tax.
</FONT>

<P align="left">
<B><FONT size="2">Executive Vice President and CFO Employment
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective December&nbsp;6, 2001, George Murnane
III and the Company entered into an employment agreement, in
which Mr.&nbsp;Murnane agreed to serve as Executive Vice
President of the Company for a term of four (4)&nbsp;years
ending December, 2005. In February 2003, Mr.&nbsp;Murnane was
appointed Chief Financial Officer of the Company. Under
Mr.&nbsp;Murnane&#146;s employment agreement, Mr.&nbsp;Murnane
receives a base salary of $145,000. The base salary is subject
to increases in the Consumer Price Index, and is subject to
annual discretionary increases upon review by the Board.
Mr.&nbsp;Murnane is also entitled to an annual bonus paid
quarterly based on annual performance criteria as set forth in
the agreement, which may range from $40,000 to $180,000. The
Company also is obligated to provide Mr.&nbsp;Murnane with
$2,000,000 of term life insurance and other customary fringe
benefits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Murnane&#146;s employment agreement also
provides for the initial grant of stock options to purchase
150,000&nbsp;shares of Common Stock, with the options vesting in
one-third increments over a three-year period, and additional
annual option grants of not fewer than 40,000&nbsp;shares
throughout the term of the agreement. The option exercise price
for each option is determined by the market price for the Common
Stock on the date the option is granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The agreement provides that upon
Mr.&nbsp;Murnane&#146;s disability, as defined in the agreement,
Mr.&nbsp;Murnane will receive on a monthly basis, his base
salary, plus an annualized amount equal to his historical
bonuses. The Company will make such disability payments for as
long as the disability lasts, up to 48 months, and payments will
continue to be made even if they extend beyond the term of the
agreement. The Company is required to fund a portion of the
payments with disability insurance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Murnane may terminate the agreement
following the occurrence of an event constituting &#147;Good
Reason.&#148; &#147;Good Reason&#148; is defined as the
occurrence of any of the following circumstances: (i)&nbsp;any
change by the Company in Mr.&nbsp;Murnane&#146;s title, or any
significant diminishment in his function, duties or
responsibilities and (ii)&nbsp;any material uncured breach by
the Company or relocation of Mr.&nbsp;Murnane outside Maricopa
County without prior written consent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;Murnane&#146;s employment is
terminated (a)&nbsp;by the Company without Cause (as defined in
the agreement) or (b)&nbsp;by Mr.&nbsp;Murnane for Good Reason,
the Company is required to pay all normal accrued amounts plus
pay Mr.&nbsp;Murnane the greater of (i)&nbsp;salary and bonus
payments calculated at the threshold level and (ii)&nbsp;salary
and bonus payment, calculated at the minimum level, equal to two
years of service. Upon termination by the Company or by
Mr.&nbsp;Murnane following a Change in Control (as defined in
the agreement), the Company must pay all normal accrued amounts
plus payment representing four years of salary and bonus
calculated at the minimum level, with an agreed minimum payment
of at least one million dollars.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any payments received by Mr.&nbsp;Murnane
under the agreement are treated as &#147;golden parachute&#148;
payments and are subjected to the excise tax imposed by
Section&nbsp;4999 of the Internal Revenue Code, Mr.&nbsp;Murnane
is entitled to receive &#147;gross up&#148; payments sufficient
to cover the excise tax.
</FONT>

<P align="left">
<B><FONT size="2">Other Employment Agreements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon his appointment as Vice President and
General Counsel, Mr.&nbsp;Gillman and the Company entered into
an employment agreement. Upon his appointment as Senior Vice
President, US Airways Express, the
</FONT>

<P align="center"><FONT size="2">13
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Company amended its employment agreement with
Mr.&nbsp;Leake to reflect his new duties. Both of these
employment agreements provide for cash and non-cash
compensation. Mr.&nbsp;Leake and Mr. Gillman receive a base
salary of $120,000 and $110,000, respectively, and are eligible
to receive quarterly bonuses of varying minimum amounts ranging
from at least 5% to at least 25% of their respective base
salaries. Further, these employment agreements differ from
Mr.&nbsp;Ornstein&#146;s and Mr.&nbsp;Lotz&#146;s with respect
to lump sum payments due to each of them upon termination by the
Company without Good Cause or by either of them for Good Reason
and with respect to the retention of either of them as
consultants thereafter.
</FONT>
</DIV>

<!-- link1 "COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center">
<B><FONT size="2">COMPENSATION COMMITTEE REPORT ON EXECUTIVE
COMPENSATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Compensation Committee consists of three
non-employee directors, Messrs.&nbsp;Altobello, Parker and
Manson. The Compensation Committee has the responsibility for
allocation of cash compensation and stock options to senior
executive officers of the Company. The Compensation Committee
primarily administers the Company&#146;s cash compensation plans
and employee stock option plans. In those instances in which
Rule&nbsp;16b-3 of the Securities Exchange Act of 1934 requires
grants or awards of stock options to be made by a
&#147;disinterested&#148; committee, the Compensation Committee
is solely responsible for the administration of such plans.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The entire Board regularly reviews the
Compensation Committee decisions relating to executive
compensation. The Company&#146;s executive compensation
policies, as endorsed by the Compensation Committee, have been
designed to provide a balanced compensation program that will
assist the Company in its efforts to attract, motivate and
retain talented executives who the Compensation Committee and
senior management believe are important to the long-term
financial success of the Company. The employment contracts of
Messrs.&nbsp;Ornstein, Lotz and Murnane provide for bonuses.
Bonuses are limited to prescribed percentages of base salary,
based upon the percentage growth in earnings per share
(&#147;EPS&#148;) of the Company. Growth in EPS is categorized
at four levels: (1)&nbsp;Minimum&nbsp;&#151; any growth in EPS
during the prior fiscal year; (2)&nbsp;Threshold&nbsp;&#151;
5.0% to 9.9% growth in EPS; (3)&nbsp;Target&nbsp;&#151; 10.0% to
14.9% growth in EPS; and (4)&nbsp;Maximum&nbsp;&#151; 15.0% or
greater growth in EPS. The Board may also approve discretionary
bonuses. In addition to salaries and bonuses, an integral part
of executive compensation is the issuance of stock options on an
annualized basis to key employees under the Key Officer Stock
Option Plan and the 1996 Stock Option Plan (together, the
&#147;Stock Option Plans&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Key Officer Stock Option Plan provides for
options to be issued to the CEO and President at set dates for
prescribed amounts. The 1996 Stock Option Plan provides for
options to be issued to officers and key employees at the
discretion of the Compensation Committee upon recommendation by
the Chief Executive Officer. The options granted under the
foregoing Stock Option Plans vest at the rate of approximately
one-third per year commencing one year after the grant date. The
options have a 10-year term and are subject to standard option
provisions, including the requirement of continued employment
and provisions to deal with termination of employment due to
retirement, death or disability. Under the Stock Option Plans,
options will be issued at the weighted average price of Common
Stock on the date of grant. The total number of options granted
under all Stock Option Plans in fiscal 2003 was 987,850. The
Compensation Committee believes that the issuance of stock
options to officers and key employees related to the
appreciation of the Common Stock provides equitable incentives
to increase the profitability of the Company.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Compensation Committee
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Daniel J. Altobello
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Joseph L. Manson
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Maurice A. Parker
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">14
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center">
<B><FONT size="2">CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 1999, the Company entered into an
agreement with Barlow Capital, LLC (&#147;Barlow&#148;), whereby
Barlow would provide financial advisory services related to
aircraft leases, mergers and acquisitions, and certain other
financing arrangements. The Company paid fees totaling
$1.3&nbsp;million, $0.9&nbsp;million and $0.8&nbsp;million to
Barlow in fiscal 2003, 2002 and 2001, respectively, for
arranging for leasing companies to participate in the
Company&#146;s various aircraft financings under this agreement.
At December&nbsp;22, 2003, Jonathan Ornstein, the Company&#146;s
Chairman of the Board and Chief Executive Officer, George
Murnane&nbsp;III, the Company&#146;s Executive Vice President
and Chief Financial Officer were each members of Barlow and each
hold a 25% membership interest therein. James Swigart, a former
member of the Company&#146;s Board of Directors, withdrew as a
member of Barlow effective October&nbsp;3, 2003. Prior to
Mr.&nbsp;Swigart&#146;s withdrawal from Barlow, each of
Messrs.&nbsp;Swigart, Ornstein and Murnane held a 20% membership
ownership interest in Barlow. Distributions to the members are
determined by the members on a year-by-year basis and are not
based on a member&#146;s percentage interest in Barlow.
Substantially all of Barlow&#146;s revenues are derived from its
agreement with the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;9, 1998, the Company entered
into an agreement with International Airline Support Group
(&#147;IASG&#148;) whereby the Company would consign certain
surplus parts to IASG to sell on the open market. IASG in turn
would submit proceeds from such sales to the Company less a
market-based fee. At September&nbsp;30, 2003 and 2002, the
Company had $2.5&nbsp;million and $2.4&nbsp;million,
respectively, in inventory on consignment with IASG. The Company
had accounts receivable from IASG for the proceeds from
inventory sales of $0.2&nbsp;million and $10,000 as of
September&nbsp;30, 2003 and 2002, respectively. During fiscal
2003, 2002 and 2001, respectively, the Company paid IASG
approximately $0.4&nbsp;million, $0.3&nbsp;million and
$0.6&nbsp;million in commissions on sales of surplus aircraft
parts. During 2003, IASG provided consultation on determining
the fair value of the Company&#146;s surplus inventory.
Mr.&nbsp;Ronald Fogleman, a member of the Company&#146;s Board
of Directors and Mr.&nbsp;Murnane were members of the board of
directors of IASG during fiscal 2003 and Mr.&nbsp;Murnane was an
executive officer of IASG before joining the Company.
Messrs.&nbsp;Fogleman and Murnane resigned from the Board of
Directors of IASG in mid-2003. In September 2003, IASG ceased
operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides reservation services to
Europe-By-Air, Inc. The Company billed Europe-By-Air
approximately $61,000 during fiscal 2003 and $0.1&nbsp;million
for these services during fiscal 2002 and 2001. At
September&nbsp;30, 2003 and 2002, the Company had receivables
from Europe-By-Air of $35,000 and $32,000, respectively.
Mr.&nbsp;Ornstein and Mr.&nbsp;Swigart are major shareholders of
Europe-By-Air.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has used the services of the law firm
of Piper Rudnick (formerly Verner, Liipfert, Bernhard, McPherson
and Hand) for labor related actions. The Company paid Piper
Rudnick $0.3&nbsp;million and $0.6&nbsp;million for
legal-related services in 2003 and 2002, respectively.
Mr.&nbsp;Joseph Manson, a member of the Company&#146;s Board of
Directors, is a partner with Piper Rudnick.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During fiscal 2001, the Company established
Regional Airline Partners (&#147;RAP&#148;), a political
interest group formed to pursue the interests of regional
airlines, communities served by regional airlines and
manufactures of regional airline equipment. Mr.&nbsp;Maurice
Parker, a member of the Company&#146;s Board of Directors, is
the Executive Director of RAP. During 2003, 2002 and 2001, the
Company paid RAP&#146;s operating costs totaling approximately
$200,000, $165,000 and $18,000, respectively. Included in these
amounts are wages and expenses of Mr.&nbsp;Parker, which
amounted to $114,000, $99,000 and $4,000 in fiscal 2003, 2002
and 2001, respectively. Since inception, the Company has
financed 100% of RAP&#146;s operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 2001, the Company entered into an
agreement to form UFLY, LLC (&#147;UFLY&#148;), for the purpose
of making strategic investments in US Airways, Inc. In September
2001, the Company began making investments in US Airways common
stock on behalf of the Company and the other investors. UFLY was
formally established in October 2001. In fiscal 2002, the
Company contributed $5.0 million in investments and the other
members contributed $5.0&nbsp;million in cash to form UFLY. Also
during 2002, UFLY made capital distributions of
$2.5&nbsp;million back to the Company and $3.0&nbsp;million to
the other members. Shares held by the Company prior to formation
sustained an unrealized loss at September&nbsp;30, 2001 of
approximately $1.0&nbsp;million. UFLY had investment gains of
$28,000 and investment losses of $1.9&nbsp;million during fiscal
2003 and 2002, respectively. Mr.&nbsp;Ornstein is a
shareholder/owner and managing member of UFLY. Mr.&nbsp;Ornstein
received no
</FONT>

<P align="center"><FONT size="2">15
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">additional compensation from the Company or UFLY
for his role as managing member of UFLY. As of
September&nbsp;30, 2003, all of UFLY&#146;s remaining assets
have been distributed and UFLY has been dissolved.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In fiscal 2003, Durango Pro-Focus used the
services of the Company for pilot training. The Company billed
Durango Pro-Focus $45,000 in fiscal year 2003 for pilot training
services. Mr.&nbsp;Fogleman a major shareholder and the
President and Chief Executive Officer of Durango Pro-Focus. The
Company had accounts receivable of $45,000 from Durango
Pro-Focus as of September&nbsp;30, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will enter into future business
arrangements with related parties only where such arrangements
are approved by a majority of disinterested directors and are on
terms at least as favorable as those available from unaffiliated
third parties.
</FONT>

<P align="center"><FONT size="2">16
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "COMPARISON OF STOCK PERFORMANCE" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center">
<B><FONT size="2">COMPARISON OF STOCK PERFORMANCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below is a graph comparing the
five-year cumulative shareholder return on the Common Stock
against the five-year cumulative total return on the CRSP Index
for NASDAQ Stock Market, U.S.&nbsp;Companies, and the American
Stock Exchange Airline Index (the &#147;Peer Group&#148;). The
graph assumes an initial investment of $100.00 and reinvestment
of dividends, if any.
</FONT>

<P align="left">
<IMG src="p68687p6868705.gif" alt="(STOCK PERFORMANCE GRAPH)">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="29%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="25"></TD>
</TR>

<TR>
    <TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-98</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-99</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-00</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-01</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-02</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Sep-03</FONT></B></TD>
</TR>

<TR>
    <TD colspan="25"></TD>
</TR>

<TR>
    <TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mesa Air Group, Inc.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NASDAQ Stock Market (U. S. Companies)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AMEX Airline Index
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- link1 "RATIFY ADOPTION OF MESA AIR GROUP, INC. 2003 EMPLOYEE STOCK INCENTIVE PLAN (PROPOSAL NO. 2)" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center">
<B><FONT size="2">RATIFY ADOPTION OF MESA AIR GROUP,
INC.</FONT></B>

<DIV align="center">
<B><FONT size="2">2003 EMPLOYEE STOCK INCENTIVE PLAN</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">(PROPOSAL NO. 2)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the Annual Meeting, stockholders will be asked
to approve the Company&#146;s 2003 Employee Stock Incentive Plan
(the &#147;2003 Plan&#148;), which was adopted by the Board of
Directors, subject to approval by the Company&#146;s
stockholders. The Company&#146;s Board of Directors considers
the 2003 Plan to be important to the Company&#146;s ability to
appropriately compensate its officers and employees as the
Company continues to grow. In this respect, the 2003 Plan will
serve the objectives previously implemented under the
Company&#146;s 1996 Stock Option Plan, as amended (the
&#147;1996 Plan&#148;). Substantially all of the shares
authorized under the 1996 Plan have either been issued or are
subject to currently outstanding options or other awards under
the 1996 Plan.
</FONT>

<P align="left">
<B><FONT size="2">Vote Required</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Approval of the 2003 Plan requires the
affirmative vote of a majority of the shares of Common Stock
present or represented by proxy and entitled to vote at the
Annual Meeting.
</FONT>

<P align="center"><FONT size="2">17
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Summary of the 2003 Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following summary of the main features of the
2003 Plan is qualified in its entirety by reference to the
complete text of the 2003 Plan, which is set forth as
Appendix&nbsp;A to this Proxy Statement. For purposes of the
discussion contained in this Proposal No.&nbsp;2, a capitalized
term shall have the meaning assigned to such term in the 2003
Plan except as otherwise provided.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan authorizes the grant and issuance
of three different types of Awards:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Options (&#147;Stock Options&#148;), which can
qualify as &#147;incentive stock options&#148; under the Tax
Code or as &#147;non-qualified stock options;&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Restricted Stock, which is stock that is
contingent on an employee satisfying conditions, including
without limitation continued employment, passage of time or
satisfaction of performance criteria; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Performance Shares, which are performance bonuses
paid in either cash or shares of Common Stock
(&#147;Shares&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan has a number of special terms and
limitations, including:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The exercise price for Stock Options granted
under the 2003 Plan must at least equal the Shares&#146; fair
market value at the time the Stock Option is granted;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan expressly states that Stock Options
granted under it can not be &#147;repriced,&#148; as defined in
the 2003 Plan;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except for ISOs (see below), 1,000,000 shares;
plus, the number of shares subject to awards granted under the
Company&#146;s 1996 Stock Option Plan but which are not issued
as a result of the cancellation, expiration or forfeiture of
such awards (the &#147;1996 Plan Shares&#148;) are proposed to
be available for issuance under the 2003 Plan;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">However, no more than 1,000,000 shares (provided
that such Shares shall not include the 1996 Plan Shares) may be
issued pursuant to the exercise of ISOs granted under the 2003
Plan; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Stockholder approval is required for certain
types of amendments to the 2003 Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan is designed to enable the Company
to attract, retain and motivate its officers and other key
employees, and to further align their interests with those of
the stockholders of the Company, by providing for or increasing
the proprietary interest of such persons in the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan has various provisions so that
Awards under it may, but need not, qualify for an exemption from
the &#147;short swing liability&#148; provisions of
Section&nbsp;16(b) of the Exchange Act pursuant to
Rule&nbsp;16b-3 and/or qualify as &#147;performance based
compensation&#148; that is exempt from the $1&nbsp;million
limitation on the deductibility of compensation under
Section&nbsp;162(m) of the Tax Code. However, stockholder
approval of the class of eligible participants, the per person
annual award limitations and the &#147;Qualifying Performance
Criteria&#148; potentially associated with Awards granted under
the 2003 Plan are required in order for awards under the 2003
Plan to qualify potentially as &#147;performance based
compensation&#148; under Tax Code Section&nbsp;162(m).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan&#146;s per person award limitations
for purposes of Section&nbsp;162(m) are as follows: (1)&nbsp;the
aggregate number of Shares subject to Stock Options granted
under the 2003 Plan during any calendar year to any one
participant may not exceed 150,000; and (2)&nbsp;the aggregate
number of Shares issued or issuable under all Awards other than
Stock Options granted under the 2003 Plan during any calendar
year to any one participant may not exceed 50,000. In the
future, if such limitations are not required under Code
Section&nbsp;162(m), then a change in such limitations shall not
be subject to stockholder approval.
</FONT>

<P align="left">
<B><FONT size="2">Eligibility</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Participants in the 2003 Plan can be any person
who is an employee or prospective employee of the Company or any
subsidiary. The Compensation Committee of the Board of Directors
has not yet determined how many individuals will ultimately
participate in the 2003 Plan. Accordingly, benefits or amounts
that will be received by or allocated to eligible participants
in the 2003 Plan are not determinable and neither is the amounts
that would have been received by or allocated participants for
fiscal 2003 had the 2003 Plan been in
</FONT>

<P align="center"><FONT size="2">18
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">place during such period. While it is generally
expected that the same categories of executives and employees
who participate under the 1996 Plan will be eligible to
participate under the 2003 Plan, Awards may from time to time be
granted to employees who are not in these groups but who have
otherwise distinguished themselves for their contributions to
the Company or who are expected to make significant
contributions to the Company.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Administration</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan will be administered by the
Compensation Committee (the &#147;Committee&#148;) of the Board
of Directors, although the Board of Directors may exercise any
authority of the Committee under the 2003 Plan in lieu of the
Committee&#146;s exercise thereof. The Committee may designate
subcommittees and may delegate certain administrative functions
to others.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the express provisions of the 2003
Plan, the Committee has broad authority to administer and
interpret the 2003 Plan, including, without limitation,
authority to determine who is eligible to participate in the
2003 Plan and to which of such persons, and when, Awards are
granted under the 2003 Plan, to determine the number of shares
of Common Stock subject to Awards and the exercise or purchase
price of such shares under an Award, to establish and verify the
extent of satisfaction of any performance goals applicable to
Awards, to prescribe and amend the terms of the agreements
evidencing Awards made under the 2003 Plan, and to make all
other determinations deemed necessary or advisable for the
administration of the 2003 Plan.
</FONT>

<P align="left">
<B><FONT size="2">Stock Subject to the 2003 Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except for ISOs (see above), the aggregate number
of Shares that can be issued under the 2003 Plan may not exceed
1,000,000, plus the 1996 Plan Shares. If the outstanding Shares
or other securities of the Company, or both, for which the Award
is then exercisable or as to which the Award is to be settled
shall at any time be changed or exchanged by declaration of a
stock dividend, stock split, combination of shares,
recapitalization, or reorganization, the Committee may
appropriately and equitably adjust the number and kind of Shares
or other securities which are subject to the 2003 Plan or
subject to any Awards theretofore granted, and the exercise or
settlement prices of such Awards, so as to maintain the
proportionate number of Shares or other securities without
changing the aggregate exercise or settlement price, provided,
however, that such adjustment shall be made so as to not affect
the status of any Award intended to qualify as an ISO or as
&#147;performance based compensation&#148; under
Section&nbsp;162(m) of the Tax Code. For purposes of calculating
the aggregate number of Shares issued under the 2003 Plan, only
the number of shares actually issued upon exercise or settlement
of an Award and not delivered to or retained by the Company upon
cancellation, expiration or forfeiture of an Award or in payment
or satisfaction of the purchase price or exercise price of an
Award shall be counted.
</FONT>

<P align="left">
<B><FONT size="2">Awards</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan authorizes the grant and issuance
of the following types of Awards: Stock Options, Restricted
Stock, and Performance Shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Options.</FONT></I><FONT size="2">
Subject to the express provisions of the 2003 Plan and as
discussed in this paragraph, the Committee has discretion to
determine the vesting schedule of Stock Options, the events
causing a Stock Option to expire, the number of shares subject
to any Stock Option, the restrictions on transferability of a
Stock Option, and such further terms and conditions, in each
case not inconsistent with the 2003 Plan, as may be determined
from time to time by the Committee, except that no Stock Options
granted to an employee may become exercisable within one
(1)&nbsp;year of the grant date. The 2003 Plan expressly
provides that the Company can not &#147;reprice&#148; Stock
Options. The exercise price for Stock Options may not be less
than 100% of the fair market value of the Common Stock (as
determined pursuant to the 2003 Plan) at the time the Stock
Option is granted. The exercise price of an Stock Option may be
paid through various means specified by the Committee, including
in cash or check, by delivering to the Company shares of Common
Stock, by a reduction in the number of shares issuable pursuant
to such option, or by a commitment to pay by a stock broker to
pay over proceeds from the sale of shares issuable under a Stock
Option. Stock Options granted under the 2003 Plan may be either
incentive stock options (&#147;ISOs&#148;) qualifying under
Section 422 of the Tax Code or non-qualified stock options
(&#147;NQSOs&#148;), which are not intended to qualify as ISOs.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Restricted Stock.</FONT></I><FONT size="2">
The Committee may make awards of restricted stock to
participants, which will be subject to restrictions on
transferability and other restrictions as the Committee may
impose, including, without limitations on the right to vote
restricted stock or the right to receive dividends, if any, on
the restricted stock. These awards may be subject to forfeiture
upon any conditions or criteria established by the Committee,
including without limitation termination of employment or upon a
failure to satisfy Qualifying Performance Criteria during the
applicable restriction period. In addition, in the discretion of
the Compensation Committee, awards of restricted stock may be
issued upon participants meeting certain Qualifying Performance
Criteria.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Performance Shares.</FONT></I><FONT size="2">
Performance Shares is an award to receive a number Shares, the
payment of which is contingent upon the participant achieving
certain performance standards derived from the Qualifying
Performance Criteria, which is described below. Once the
conditions and terms for the performance Shares have been met,
the Performance Shares shall be payable either in cash or Shares
(or both) by reference to the fair market value of the Shares
enumerated in the Performance Shares at such times as indicated
in the Award. The Committee also may impose restrictions on such
Awards, including on its transferability.
</FONT>

<P align="left">
<B><FONT size="2">Qualifying Performance Criteria</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to stockholder approval of the 2003 Plan,
the performance criteria for any Award that is intended to
satisfy the requirements for &#147;performance based
compensation&#148; under Code Section&nbsp;162(m) shall be any
one or more of the following performance criteria, either
individually, alternatively or in any combination, applied to
either the Company as a whole, to a business unit or subsidiary,
or based on comparisons of any of the performance measures
relative to other companies, either individually, alternatively
or in any combination, and measured either annually or
cumulatively over a period of years, on an absolute basis or
relative to a pre-established target, to previous years&#146;
results or to a designated comparison group, in each case as
specified by the Committee in the Award: (a)&nbsp;cash flow,
(b)&nbsp;earnings per share or increases of same,
(c)&nbsp;earnings before interest, taxes and amortization,
(d)&nbsp;return on equity, (e)&nbsp;total stockholder return,
(f)&nbsp;share price performance, (g)&nbsp;return on capital or
investment, (h)&nbsp;return on assets or net assets,
(i)&nbsp;revenue, (j)&nbsp;income or net income,
(k)&nbsp;operating income or net operating income,
(l)&nbsp;operating profit or net operating profit,
(m)&nbsp;operating margin or profit margin, (n)&nbsp;return on
operating revenue, (o)&nbsp;pre-tax or after-tax profit levels
expressed in either absolute dollars, (p)&nbsp;revenues or
revenue growth, (q)&nbsp;economic or cash value added,
(r)&nbsp;results of customer satisfaction surveys,
(s)&nbsp;other measures of performance, quality, safety,
productivity or process improvement, (t)&nbsp;market share,
(u)&nbsp;overhead or other expense reduction, (v)&nbsp;departure
or on-time arrival performance, and (w)&nbsp;baggage handling.
These factors may have a minimum performance standard, a target
performance standard and a maximum performance standard. The
Committee shall appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to exclude
any of the following events that occurs during a performance
period: (i)&nbsp;asset write-downs, (ii)&nbsp;litigation or
claim judgments or settlements, (iii)&nbsp;the effect of changes
in tax law, accounting principles or other such laws or
provisions affecting reported results, (iv)&nbsp;accruals for
reorganization and restructuring programs and (v)&nbsp;any
extraordinary non-recurring items as described in Accounting
Principles Board Opinion No.&nbsp;30 and/or in management&#146;s
discussion and analysis of financial condition and results of
operations appearing in the Company&#146;s annual report to
stockholders for the applicable year.
</FONT>

<P align="left">
<B><FONT size="2">Transferability of Awards and Other Provisions
Applicable to Awards</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, Awards granted under the 2003 Plan may
not be sold, assigned, conveyed, gifted, pledged, hypothecated
or otherwise transferred in any manner prior to the vesting or
lapse of any and all restrictions applicable thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Plan has provisions designed so that it
qualifies as an &#147;eligible plan&#148; under the margin
provisions of Regulation&nbsp;U, by expressly providing that the
Committee may, but is not required to, loan the amount necessary
to purchase shares and/or pay taxes under any award. The 2003
Plan also provides that the Committee may, but need not, provide
that the holder of an Award has a right under an Award to
receive a number of shares or cash, or a combination thereof,
the amount of which is determined by reference to the value of
the Award. Finally, the 2003 Plan does not limit the
Company&#146;s right to make other arrangements to provide stock
options and other forms of compensation arrangements as it
determines appropriate.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Amendments and Termination</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors may amend, alter or
discontinue the 2003 Plan or any agreement evidencing an Award
made under the 2003 Plan, but no such amendment shall, without
the approval of the stockholders of the Company:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;change the maximum number of shares of
    Common Stock for which Awards may be granted under the 2003 Plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;reduce the price at which Options may be
    granted below the price provided for in Section&nbsp;6.2 of the
    2003 Plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(c)&nbsp;reduce the exercise price of outstanding
    Options;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(d)&nbsp;extend the term of the 2003 Plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(e)&nbsp;change the class of persons eligible to
    be Eligible Persons or Participants; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(f)&nbsp;increase the number of shares that are
    eligible for non-Option Awards.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board may amend, alter or discontinue the
2003 Plan or any agreement evidencing an Award made under the
2003 Plan, but no amendment or alteration shall be made which
would impair the rights of any Award holder, without such
holder&#146;s consent, under any Award theretofore granted;
provided that no such consent shall be required if the Committee
determines in its sole discretion and prior to the date of any
change in control, recapitalization, stock dividend, stock
split, reorganization, merger, consolidation or similar type
transaction that such amendment or alteration either is required
or advisable in order for the Company, the 2003 Plan, or any
Award granted, to satisfy any law or regulation or to meet the
requirements of any accounting standard.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No Award granted under the 2003 Plan shall be
granted pursuant to the 2003 Plan more than 10&nbsp;years after
the date of the adoption of the 2003 Plan by the Company&#146;s
stockholders.
</FONT>

<P align="left">
<B><FONT size="2">Federal Income Tax Consequences</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following discussion of the federal income
tax consequences of the 2003 Plan is intended to be a summary of
applicable federal law as currently in effect. State and local
tax consequences may differ, and tax laws may be amended or
interpreted differently during the term of the 2003 Plan or of
Awards granted there under. Because the federal income tax rules
governing Awards and related payments are complex and subject to
frequent change, and they depend on the Participant&#146;s
individual circumstances, Participants are advised to consult
their tax advisors prior to exercise of options or other Awards
or dispositions of stock acquired pursuant to Awards.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The Stock Options</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">ISOs and NQSOs are treated differently for
federal income tax purposes. ISOs are intended to satisfy the
requirements of Section&nbsp;422 of the Tax Code. NQSOs need not
satisfy such requirements.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ISOs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No taxable income will result to a Participant
upon the grant of an ISO. Upon the exercise of an ISO, any
excess of the fair market value of the stock over the option
price is a tax preference item that may result in the imposition
of the alternative minimum tax in the year of exercise. However,
if any of such shares are disposed of by the Participant in a
disqualifying disposition (see below) in the same taxable year
as the exercise, there will be no item of tax preference as to
such disposed shares, although the Participant will recognize
ordinary income as discussed below. In cases where the exercise
of the option does produce an item of tax preference, the basis
of the stock for purposes of the alternative minimum tax will
include the amount of such tax preference item.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On the subsequent sale of stock acquired by the
exercise of an ISO, gain or loss will be recognized in an amount
equal to the difference between the amount realized on the sale
and the Participant&#146;s tax basis in the stock sold. The tax
basis of stock acquired solely for cash will be equal to the
amount of cash paid. If an ISO is exercised using previously
acquired stock (or stock and cash) in payment, the
Participant&#146;s tax basis for the
</FONT>

<P align="center"><FONT size="2">21
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">number of shares of stock received equal to the
number used in payment shall be the same as the
Participant&#146;s basis in the stock used as payment. The
Participant&#146;s aggregate tax basis in any additional stock
received will be equal to the amount of cash paid (if any).
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a disposition of stock does not take place
until more than two years after grant and more than one year
after exercise of the option, any gain or loss realized will be
treated as long-term capital gain or loss. Under such
circumstances, the Company will not be entitled to a deduction
for income tax purposes in connection with the exercise of the
option. If a disposition occurs within two years after grant or
one year after exercise of the option, the difference between
the fair market value of the stock on the date of exercise and
the tax basis in the stock is taxable as compensation income to
the Participant and is deductible by the Company for federal
income tax purposes. Any additional amount realized on the
disposition will be taxed as either long-term or short-term
capital gain.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the option price of an ISO is paid by using
stock that was acquired upon the exercise of an ISO
(&#147;Payment Shares&#148;) and the Payment Shares have not
been held for more than one year from exercise and two years
from grant, the transfer of such Payment Shares to exercise an
ISO will be treated as a &#147;disposition&#148; of such Payment
Shares. Upon such disposition, the excess of the fair market
value of the Payment Shares on the date they had originally been
acquired (or, if less, the fair market value of the Payment
Shares on the date of disposition) over the Participant&#146;s
tax basis in such Payment Shares is taxable as compensation
income to the Participant and is deductible by the Company.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">NQSO</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, no taxable income will be recognized
by the Participant, and no deduction will be allowed to the
Company, upon the grant of a NQSO. Upon exercise of an
unrestricted NQSO, a Participant will recognize ordinary income
(and the Company will be entitled to a corresponding tax
deduction) in an amount equal to the amount by which the fair
market value of the shares on the exercise date exceeds the
option exercise price. Any gain or loss realized by a
Participant on disposition of such shares generally is a capital
gain or loss and does not result in any tax deduction to the
Company.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Restricted Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A grant of restricted stock does not result in
income to the Participant or a corresponding tax deduction for
the Company until the shares are no longer subject to
restrictions, or forfeiture, unless the Participant, elects
under Section&nbsp;83(b) of the Code to have the amount of
income to the Participant (and deduction to the Company)
determined at the date of the grant. At the time of lapse of
restrictions (or a Section&nbsp;83(b) election), the Participant
generally will recognize ordinary income equal to the fair
market value of the shares less any amount paid for them, and
the Company will be entitled to a tax deduction in the same
amount (subject to certain restrictions set forth below under
Section&nbsp;162(m) of the Code. Any dividends paid on
restricted stock will be treated as compensation for federal
income tax purposes, unless the Participant has made a
Section&nbsp;83(b) election. After the restrictions have lapsed
(or a Section&nbsp;83(b) election has been made), the
Participant may treat appreciation subsequent to such time as
capital gain (depending on the holding period for the shares).
Participants receiving Restricted Stock should consult their tax
advisors regarding the ability and advisability of making the
Section&nbsp;83(b) election, including the limitations on
claiming a loss if the shares decline in value or are forfeited
after receipt.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Performance Shares</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No taxable income generally is reportable when a
Performance Share is granted to a Participant. Upon satisfaction
of the criteria established by the Committee and upon having the
right to receive the cash and/or the Shares based on the timing
set by the Committee, the Participant will recognize
compensation income in an amount equal to the amount of cash
received and the fair market value of any Shares. Any additional
gain or loss recognized upon any later disposition of the Shares
would be capital gain or loss.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Withholding and Other Issues for
    Employees</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company generally will be entitled to
withhold any required taxes in connection with the exercise or
payment of an Award, and may require the participant to pay such
taxes as a condition to exercise of an
</FONT>

<P align="center"><FONT size="2">22
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Award. Special rules will apply in cases where a
recipient of an Award pays the exercise or purchase price of the
Award or applicable withholding tax obligations under the 2003
Plan by delivering previously owned shares or by reducing the
number of shares otherwise issuable pursuant to the Award. The
surrender or withholding of such shares will in certain
circumstances result in the recognition of income with respect
to such shares or a carryover basis in the shares acquired, and
may constitute a disposition for purposes of applying the ISO
holding periods as discussed above.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee, pursuant to the terms of the
agreements or other documents pursuant to which specific Awards
are made under the 2003 Plan, may agree to reimburse
Participants for some or all of the federal, state and local
income taxes associated with the grant or exercise of an Award
or the receipt of the cash or Shares from an Award, or the 20%
excise tax on any &#147;excess parachute payments&#148; under
Code Sections&nbsp;280G and Code Section&nbsp;4999, and may
agree to reimburse the additional federal, state and local
income tax from the reimbursement payments made.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Tax Effect to Company</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company generally will be entitled to a tax
deduction in connection with an Award under the 2003 Plan in an
amount equal to the compensation income (ordinary income)
realized by a Participant and at the time the Participant
recognizes such income (for example, the exercise of a NQSO).
Special rules limit the deductibility of compensation paid to
certain Covered Employees of the Company (as defined by Code
Section&nbsp;162(m)(3)). Under Section&nbsp;162(m) of the
Internal Revenue Code, the annual compensation paid to any of
these Covered Employees will be deductible only to the extent
that it does not exceed $1,000,000 or if the compensation is
paid solely on account of attaining one or more pre-established,
objective performance goals. The 2003 Plan has been constructed
such that some Awards in the Committee&#146;s discretion may
qualify as &#147;performance-based compensation&#148; under
Section&nbsp;162(m) of the Code and thus would be deductible
even if the total compensation paid to the Covered Employee is
in excess of $1,000,000. However, whether an Award will qualify
under Section&nbsp;162(m) as &#147;performance-based
compensation&#148; will depend on the terms, conditions and type
of the Award issued the Covered Employee. For example, grants of
Options or Restricted Stock often vest only according to the
optionee&#146;s or Grantee&#146;s length of employment rather
than pre-established performance goals. Therefore, the
compensation derived from the Awards made to Covered Employees
may not be deductible by the Company to the extent the Covered
Employee&#146;s total compensation exceeds $1&nbsp;million.
</FONT>

<P align="left">
<B><FONT size="2">Required Vote</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Approval of the 2003 Plan requires the
affirmative vote of a majority of shares of Common Stock present
at the Annual Meeting in person or by proxy. Abstentions are
considered present for this proposal, so they will have the same
effect as votes against the 2003 Plan. Broker non-votes are not
considered present for this proposal.
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
THAT YOU</FONT></B>

<DIV align="center">
<B><FONT size="2">VOTE &#147;FOR&#148; APPROVAL OF THE
2003</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">MESA AIR GROUP, INC. EMPLOYEE STOCK INCENTIVE
PLAN.</FONT></B>
</DIV>

<!-- link1 "SHAREHOLDER PROPOSAL RELATING TO POISON PILLS (PROPOSAL NO. 3)" -->
<DIV align="left"><A NAME="016"></A></DIV>

<P align="center">
<B><FONT size="2">SHAREHOLDER PROPOSAL RELATING TO POISON
PILLS</FONT></B>

<P align="center">
<B><FONT size="2">(PROPOSAL NO. 3)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One of the Company&#146;s shareholders has given
notice of her intention to introduce the following proposal for
consideration and action by the shareholders at the Annual
Meeting. The proposed resolution and accompanying supporting
statement has been provided by the shareholder/ proponent. The
affirmative vote of a majority of the shares of Common Stock
present or represented by proxy and entitled to vote at the
Annual Meeting is required for approval of the proposal.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This shareholder proposal is submitted by E.
Pauline Berberian, 801&nbsp;Viewpointe Drive, St.&nbsp;Charles,
IL 60174, who owns 92&nbsp;shares of Common Stock.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center"><FONT size="2">23
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">3&nbsp;&#151; Poison Pill Subject to
Shareholder Vote</FONT></B>

<DIV align="center">
<B><FONT size="2">This topic won 71% of our yes-no votes at our
2003 annual shareholder meeting</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">This topic won an average 60%-yes vote at 50
companies in 2002 according to the Investor</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Responsibility Research Center</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This is to recommend a bylaw to subject to
shareholder vote on the next shareholder ballot, the adoption or
extension of any current or future poison pill. Once adopted,
removal of this proposal would be subject to shareholder vote on
the next shareholder ballot.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This proposal is submitted by E.&nbsp;Pauline
Berberian.
</FONT>

<P align="center">
<B><FONT size="2">Shareholders&#146; Central Role</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Putting poison pills to a vote is a way of
affirming the central role that shareholders should play in the
life of a corporation. Eliminating the poison pill is a way of
ensuring that management faces the same accountability that
other workers do. There are often reasons that hostile takeovers
should fail. But anti-democratic schemes to flood the market
with diluted stock are not one of them. Source: The Motley Fool.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The key negative of poison pills is that pills
can preserve management deadwood instead of protecting
investors. Source: Moringstar.com.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Poison pills are akin to the argument of a
dictator who says, &#147;Give up more of your freedom and
I&#146;ll take care of you.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Performance is the greatest defense against
getting taken over. Ultimately if you perform well you remain
independent, because your stock price stays up,&#148; Source:
T.J.&nbsp;Dermot Dunphy, CEO of Sealed Air for more than
25&nbsp;years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since the 1980s Fidelity, a mutual fund giant
with $800&nbsp;billion invested, has withheld votes for
directors at companies which approved poison pills, <I>Wall
Street Journal</I>, June&nbsp;12, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beware of substitutes: I believe that any poison
pill bylaw or policy, with a loophole to forego or stall a
shareholder vote would not be a substitute for this proposal.
Also any poison pill bylaw or policy which could be removed
without a shareholder vote would not be a substitute.
</FONT>

<P align="left">
<B><FONT size="2">Threat of Hostile Takeover Can Improve
Management</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some of us who&#146;ve followed closely the
increasing arc of CEO pay believe it&#146;s no coincidence that
the rise began just as courts and legislatures were erecting
obstacles to hostile takeovers. Hectoring board members to act
more independently is poor substitute for the bracing
possibility that shareholders could turn on a dime and sell the
company out from under its present management. An important
negative check on management went missing when we were left
waving ever-larger carrots in front of management in hopes of
inducing them to serve shareholder interests. Carrots are fine,
but a stick is often handy, too. <I>Wall Street Journal.</I>
Feb. 24, 2003
</FONT>

<P align="left">
<B><FONT size="2">Council of Institutional Investors
Recommendation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Council of Institutional Investors
<I>www.cii.org</I>, an organization of 130 pension funds
investing $2&nbsp;trillion, called for shareholder approval of
poison pills. In recent years, companies have redeemed their
pill or have provided for a shareholder vote. I believe that our
company should follow suit and allow shareholders a vote on this
key issue.
</FONT>

<P align="center">
<B><FONT size="2">Poison Pill Subject to Shareholder
Vote</FONT></B>

<DIV align="center">
<B><FONT size="2">Yes on 3</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">THE MESA AIR BOARD RECOMMENDS YOU VOTE AGAINST
THIS PROPOSAL FOR THE FOLLOWING REASONS:</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mesa Air has no poison pill or shareholder rights
    plan and it is unlikely that the Board of Directors of the
    Company would ever need to consider such a plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">24
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On December&nbsp;30, 2003, the Board adopted a
    policy statement on poison pills, which provides that the
    Company will only adopt a rights plan if either shareholders
    have approved adoption of the rights plan, or the Board in its
    exercise of its fiduciary responsibilities, including a majority
    of the independent members of the Board, makes a determination
    that, under the circumstances existing at the time, it would be
    in the best interests of the Company&#146;s stockholders to
    adopt a rights plan without the delay in adoption that would
    come from the time reasonably anticipated to seek shareholder
    approval.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We support the principle of shareholder voting on
rights plans and have adopted the above policy on poison pills
to provide for such a shareholder vote, except under the
circumstances where the Board, in its exercise of its fiduciary
responsibilities, including a majority of the independent
members of the Board, makes a determination that it would be in
the best interests of the Company&#146;s shareholders to adopt a
rights plan without the delay in adoption that would come from
the time reasonably anticipated to seek shareholder approval. By
adopting this policy, we do not believe it is necessary or
appropriate to subject any determination our Board makes with
respect to shareholder rights plans to a subsequent shareholder
vote, as required by the above shareholder proposal.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Shareholder rights plans are designed to
encourage potential acquirors to negotiate directly with the
Board, which is in the best position to negotiate on behalf of
all shareholders, evaluate the adequacy of any potential offer
and protect shareholders against unfair and abusive takeover
tactics. Without the protection of a shareholder rights plan,
the Board could lose important bargaining power in negotiating
with a potential acquiror or pursuing potentially superior
alternatives.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe there is compelling evidence that
shareholder rights plans are beneficial to shareholders&#146;
interests. Approximately 2,164&nbsp;companies have adopted
shareholder rights plans, including more than half of the
companies in the Standard&nbsp;&#38; Poor&#146;s 500 Index.
Studies have shown that companies adopting such plans receive
higher takeover premiums than those companies without rights
plans. For example, a 1997 study by Georgeson and Company, Inc.
found that premiums paid to acquire companies with shareholder
rights plans were 8% higher than premiums paid to companies
without shareholder rights plans. At the same time, shareholder
rights plans do not prevent companies from being acquired at
prices that are fair and adequate to shareholders. Furthermore,
it is consistent with corporate governance principles that
decisions involving a potential sale of the Company rest with
the Board of Directors which will evaluate the merits of any
acquisition proposal in accordance with its fiduciary duty to
shareholders. Because a shareholder rights plan can be an
effective tool in a takeover attempt, the Company believes the
adoption of such a plan is appropriately within the scope of the
Board&#146;s responsibilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We further believe that requiring shareholder
approval of a rights plan subsequent to its adoption by the
Board would not give management and directors greater incentive
to deal effectively with shareholder value issues because the
Board has a fiduciary duty to act in the interests of the
Company and shareholders on all matters affecting the
Company&#146;s business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the reasons discussed above, the Board
believes that the Company should retain the ability to adopt a
shareholder rights plan for the protection of shareholders.
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD RECOMMENDS THAT YOU VOTE
&#147;AGAINST&#148; THE ABOVE PROPOSAL.</FONT></B>

<!-- link1 "RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS (PROPOSAL NO. 4)" -->
<DIV align="left"><A NAME="017"></A></DIV>

<P align="center">
<B><FONT size="2">RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS</FONT></B>

<P align="center">
<B><FONT size="2">(PROPOSAL NO. 4)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deloitte&nbsp;&#38; Touche has been selected as
the Company&#146;s independent auditors for the fiscal year
ending September&nbsp;30, 2004. Shareholder ratification of the
selection of Deloitte&nbsp;&#38; Touche as the Company&#146;s
independent auditors is not required by the Company&#146;s
Bylaws or otherwise. However, the Board is submitting the
selection of Deloitte&nbsp;&#38; Touche for shareholder
ratification as a matter of good corporate practice.
Deloitte&nbsp;&#38; Touche has audited the Company&#146;s
financial statements since 2000. Notwithstanding the selection,
the Board, in its discretion, may direct appointment of a new
independent accounting firm at any time during the year if the
Board feels that such a change would be in the best interests of
the Company and its shareholders. A representative of
Deloitte&nbsp;&#38; Touche is expected to be present at the
Annual Meeting with the opportunity to make a statement if he or
she so desires and to be available to respond to appropriate
questions.
</FONT>

<P align="center"><FONT size="2">25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Ratification of the appointment of Deloitte &#38;
Touche as the Company&#146;s independent auditors for fiscal
year 2004 will require the affirmative vote of the holders of at
least a majority of the outstanding Common Stock represented in
person or by proxy at the Annual Meeting. All of the directors
and executive officers of the Company have advised the Company
that they will vote their shares of Common Stock &#147;FOR&#148;
the ratification of the appointment of Deloitte&nbsp;&#38;
Touche LLP as the Company&#146;s independent auditors for fiscal
year 2004. If the holders of at least a majority of the
outstanding Common Stock fail to ratify the appointment of
Deloitte&nbsp;&#38; Touche as the Company&#146;s independent
auditors, the Audit Committee will consider such failure at a
subsequent meeting of the Audit Committee and determine, in its
discretion, what actions it should take, if any.
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
THAT YOU</FONT></B>

<DIV align="center">
<B><FONT size="2">VOTE &#147;FOR&#148; RATIFICATION OF THE
APPOINTMENT OF</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DELOITTE &#38; TOUCHE LLP AS THE
COMPANY&#146;S INDEPENDENT</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">AUDITORS FOR FISCAL YEAR 2004.</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">Annual Report</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2003 Annual Report, which was mailed to
shareholders with this proxy statement, contains financial and
other information about our activities, but is not incorporated
into this proxy statement and is not to be considered a part of
these proxy soliciting materials. The information contained in
the &#147;Compensation Committee Report on Executive
Compensation,&#148; &#147;Report of the Audit Committee of the
Board of Directors,&#148; and &#147;Comparison of Stock
Performance&#148; in this proxy statement shall not be deemed
&#147;filed&#148; with the Securities and Exchange Commission or
subject to Regulations 14A or 14C or to the liabilities of
Section&nbsp;18 of the Securities Act of 1934, and shall not be
deemed to be incorporated by reference into any filing under the
Securities Act of 1933, as amended, or the Securities Exchange
Act of 1934, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company will provide upon written request,
without charge to each shareholder of record as of the Record
Date, a copy of the Company&#146;s annual report on
Form&nbsp;10-K for the fiscal year ended September&nbsp;30,
2003, as filed with the Securities and Exchange Commission. Any
Exhibits listed in the Form&nbsp;10-K also will be furnished
upon request at the Company&#146;s expense. Any such request
should be directed to the Company&#146;s Corporate Secretary at
the Company&#146;s executive offices at 410 North 44th Street,
Suite&nbsp;700, Phoenix, Arizona 85008.
</FONT>

<P align="left">
<B><FONT size="2">Voting by Proxy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to ensure that your shares will be
represented at the Annual Meeting, please sign and return the
enclosed Proxy in the envelope provided for that purpose,
whether or not you expect to attend. Any shareholder may,
without affecting any vote previously taken, revoke a written
proxy by giving notice of revocation to the Company in writing
or by executing and delivering to the Company a later dated
proxy.
</FONT>

<P align="left">
<B><FONT size="2">Shareholder Proposals for Action at the
Company&#146;s Next Annual Meeting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A shareholder proposal for shareholder action at
the next Annual Meeting of Shareholders to be held in 2005, must
be received by the Company&#146;s Secretary at the
Company&#146;s offices no later than September&nbsp;27, 2004, in
order to be included in the Company&#146;s proxy statement and
form of proxy for that meeting. Such proposals should be
addressed to the Corporate Secretary, Mesa Air Group, Inc.,
410&nbsp;North 44th&nbsp;Street, Suite&nbsp;700, Phoenix,
Arizona 85008. If a shareholder proposal is introduced at the
2004 Annual Meeting of Shareholders without any discussion of
the proposal in the Company&#146;s proxy statement, and the
shareholder does not notify the Company on or before
December&nbsp;10, 2004, as required by the Securities and
Exchange Commission&#146;s Rule&nbsp;14(a)-4(c)(1), of the
shareholder&#146;s intent to raise such proposal at the Annual
Meeting of Shareholders, then proxies received by the Company
for the 2005 Annual Meeting will be voted by the
</FONT>

<P align="center"><FONT size="2">26
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">persons named as such proxies in their discretion
with respect to such proposal. Notice of such proposal is to be
sent to the above address.
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">By Order of the Board of Directors
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <IMG src="p68687p6868700.gif" alt="-S- JONATHAN G. ORNSTEIN"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Jonathan G. Ornstein, Chairman of the
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Board and Chief Executive Officer
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">27
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="right">
<B><FONT size="2">Appendix&nbsp;A</FONT></B>

<P align="center">
<B><FONT size="2">2003 EMPLOYEE STOCK INCENTIVE PLAN</FONT></B>

<P align="center">
<B><FONT size="2">OF</FONT></B>

<P align="center">
<B><FONT size="2">MESA AIR GROUP, INC.</FONT></B>

<P align="left">
<B><FONT size="2">Section
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose of Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purpose of this 2003 Employee Stock Incentive
Plan (this &#147;Plan&#148;) of Mesa Air Group, Inc., a Nevada
corporation (the &#147;Company&#148;), is to enable the Company
and any subsidiary corporation (as the term is defined in Code
Section&nbsp;424(f), hereinafter each a &#147;Subsidiary&#148;
or the plural &#147;Subsidiaries&#148;) to attract, retain and
motivate their officers and other key employees, and to further
align the interests of such persons with those of the
stockholders of the Company by providing for or increasing the
proprietary interest of such persons in the Company.
</FONT>

<P align="left">
<B><FONT size="2">Section
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administration of Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.1&nbsp;<I>Composition of Committee.</I> This
Plan shall be administered by the Compensation Committee of the
Board of Directors (the &#147;Committee&#148;), as appointed
from time to time by the Board of Directors. The Board of
Directors shall fill vacancies on, and from time to time may
remove or add members to, the Committee. The Committee shall act
pursuant to a majority vote or unanimous written consent. The
Board of Directors, in its sole discretion, may exercise any
authority of the Committee under this Plan in lieu of the
Committee&#146;s exercise thereof. Notwithstanding the
foregoing, with respect to any Award that is not intended to
satisfy the conditions of Rule&nbsp;16b-3 under the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)
or Section&nbsp;162(m)(4)(C) of the Internal Revenue Code of
1986, as amended (the &#147;Code&#148;), the Committee may
appoint one or more separate committees (any such committee, a
&#147;Subcommittee&#148;) composed of one or more directors of
the Company (who may but need not be members of the Committee)
and may delegate to any such Subcommittee(s) the authority to
grant Awards, as defined in Section&nbsp;5.1 hereof, under the
Plan to Eligible Persons, to determine all terms of such Awards,
and/or to administer the Plan or any aspect of it. Any action by
any such Subcommittee within the scope of such delegation shall
be deemed for all purposes to have been taken by the Committee.
The Committee may designate the Secretary of the Company or
other Company employees to assist the Committee in the
administration of the Plan, and may grant authority to such
persons to execute agreements or other documents evidencing
Awards made under this Plan or other documents entered into
under this Plan on behalf of the Committee or the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.2&nbsp;<I>Powers of the Committee.</I> Subject
to the express provisions of this Plan, the Committee shall be
authorized and empowered to do all things necessary or
desirable, in its sole discretion, in connection with the
administration of this Plan, including, without limitation, the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;to prescribe, amend and rescind rules
    and regulations relating to this Plan and to define terms not
    otherwise defined herein; provided that, unless the Committee
    shall specify otherwise, for purposes of this Plan (i)&nbsp;the
    term &#147;fair market value&#148; shall mean, as of any date,
    the closing price for a Share (as defined in Section&nbsp;3.1)
    reported for the last trading day prior to such date by the
    NASDAQ Stock Market (or such other stock exchange or quotation
    system on which Shares are then listed or quoted) or, if no
    Shares are traded on the NASDAQ Stock Market (or such other
    stock exchange or quotation system) on the date in question,
    then for the next preceding date for which Shares traded on the
    NASDAQ Stock Market (or such other stock exchange or quotation
    system); and (ii)&nbsp;the term &#147;Company&#148; shall mean
    the Company and its Subsidiaries, unless the context otherwise
    requires;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;to determine which persons are Eligible
    Persons (as defined in Section&nbsp;4), to which of such
    Eligible Persons, if any, Awards shall be granted hereunder and
    the timing of any such Awards, and to grant Awards;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(c)&nbsp;to grant Awards to Eligible Persons and
    determine the terms and conditions thereof, including the number
    of Shares subject to Awards and the exercise or purchase price
    of such Shares and the circumstances under which Awards become
    exercisable or vested or are forfeited or expire, which terms
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">1
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">may but need not be conditioned upon the passage
    of time, continued employment, the satisfaction of performance
    criteria, the occurrence of certain events (including events
    which the Board or the Committee determine constitute a change
    of control), or other factors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(d)&nbsp;to establish, verify the extent of
    satisfaction of, adjust, reduce or waive any performance goals
    or other conditions applicable to the grant, issuance,
    exercisability, vesting and/or ability to retain any Award;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(e)&nbsp;to prescribe and amend the terms of the
    agreements or other documents evidencing Awards made under this
    Plan (which need not be identical);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(f)&nbsp;to determine whether, and the extent to
    which, adjustments are required pursuant to Section&nbsp;10;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(g)&nbsp;to interpret and construe this Plan, any
    rules and regulations under this Plan and the terms and
    conditions of any Award granted hereunder, and to make
    exceptions to any such provisions in good faith and for the
    benefit of the Company; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(h)&nbsp;to make all other determinations deemed
    necessary or advisable for the administration of this Plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.3&nbsp;<I>Determinations of the Committee.</I>
All decisions, determinations and interpretations by the
Committee regarding this Plan shall be final and binding on all
Eligible Persons and Participants. The Committee shall consider
such factors as it deems relevant to making such decisions,
determinations and interpretations including, without
limitation, the recommendations or advice of any director,
officer or employee of the Company and such attorneys,
consultants and accountants as it may select.
</FONT>

<P align="left">
<B><FONT size="2">Section 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Subject to Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.1&nbsp;<I>Aggregate Limits.</I> The aggregate
number of shares of the Company&#146;s Common Stock, no par
value (&#147;Shares&#148;), issued pursuant to all Awards
granted under this Plan shall not exceed 1,000,000; plus, the
number of shares subject to awards granted under the
Company&#146;s 1996 Stock Option Plan but which are not issued
under such plans as a result of the cancellation, expiration or
forfeiture of such awards (such Shares being known as the
&#147;1996 Plan Shares&#148;). The aggregate number of Shares
available for issuance under this Plan and the number of Shares
subject to outstanding Options or other Awards shall be subject
to adjustment as provided in Section&nbsp;10. The Shares issued
pursuant to this Plan may be Shares that either were reacquired
by the Company, including Shares purchased in the open market,
or authorized but unissued Shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.2&nbsp;<I>Additional Limits.</I> The aggregate
number of Shares subject to Options granted under this Plan
during any calendar year to any one Eligible Person shall not
exceed 150,000 (taking into account the number of shares
associated with an Option granted and then cancelled during such
calendar year). The aggregate number of Shares issued or
issuable under all Awards granted under this Plan, other than
Options, during any calendar year to any one Eligible Person
shall not exceed 50,000 (taking into account the number of
shares associated with the Awards other than Options granted and
then cancelled during such calendar year). The foregoing
limitations of this Section&nbsp;3.2 shall not apply to the
extent that they are no longer required in order for
compensation in connection with grants of Awards under this Plan
to be treated as &#147;performance-based compensation&#148;
under Code Section&nbsp;162(m) and, if no longer required, a
change in such limitation shall not be subject to stockholder
approval as required under Section&nbsp;13 hereof. The aggregate
number of Shares that may be issued pursuant to the exercise of
ISOs granted under this Plan shall not exceed 1,000,000
(provided that such Shares shall not include the 1996 Plan
Shares), which number shall be calculated and adjusted pursuant
to Section&nbsp;3.3 and Section&nbsp;10 only to the extent that
such calculation or adjustment will not affect the status of any
Option intended to qualify as an ISO under Code
Section&nbsp;422, or whether this Plan meets the requirements
under Code Section&nbsp;422(b)(1). For the avoidance of all
doubt, the 1996 Plan Shares may not be issued pursuant to the
exercise of ISOs granted under the Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.3&nbsp;<I>Issuance of Shares.</I> For purposes
of Section&nbsp;3.1, the aggregate number of Shares issued under
this Plan at any time shall equal only the number of Shares
actually issued upon exercise or settlement of an Award and
shall not include Shares subject to Awards that have been
canceled, expired or forfeited or Shares subject to Awards that
have been delivered (either actually or constructively by
attestation) to or retained by the Company in payment or
satisfaction of the purchase price or exercise price of an Award.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Section
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons Eligible Under
Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any person who is an employee or prospective
employee of the Company or any of its Subsidiaries shall be
eligible to be considered for the grant of Awards hereunder;
provided that the Award to such prospective employee is
conditioned on the prospective employee&#146;s commencement of
employment (an &#147;Eligible Person&#148;). The status of the
chairman of the Board of Directors as an &#147;employee&#148;
shall be determined by the Committee.
</FONT>

<P align="left">
<B><FONT size="2">Section 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan
Awards</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">5.1&nbsp;<I>Award Types.</I> The Committee, on
behalf of the Company, is authorized under this Plan to enter
into certain types of arrangements with Eligible Persons and to
confer certain benefits on them. The following arrangements or
benefits are authorized under this Plan if their terms and
conditions are not inconsistent with the provisions of this
Plan: Options, Performance Shares and Restricted Stock. Such
arrangements and benefits are sometimes referred to herein as
&#147;Awards.&#148; The authorized types of arrangements and
benefits for which Awards may be granted are defined as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;<I>Options</I>: An Option is a right
    granted under Section&nbsp;6 to purchase a number of Shares at
    such exercise price, at such times, and on such other terms and
    conditions as are specified in the agreement or terms and
    conditions or other document evidencing the Award (the
    &#147;Option Document&#148;). Options intended to qualify as
    Incentive Stock Options (&#147;ISOs&#148;) pursuant to Code
    Section&nbsp;422 and Options not intended to qualify as ISOs
    (&#147;Nonqualified Options&#148;) may be granted under
    Section&nbsp;6.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;<I>Performance Shares</I>. Performance
    Shares is an award made under Section&nbsp;8, to receive a
    number of Shares, the payment of which is contingent upon
    achieving certain Committee established performance standards
    derived from the Qualifying Performance Criteria described in
    Section&nbsp;9.2 hereof. Once the conditions for the Performance
    Shares are met, the Performance Shares shall be payable either
    in cash or Shares (or both) by reference to the fair market
    value of the Shares enumerated in the Performance Shares at such
    time as determined by the Committee in the Award.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(c)&nbsp;<I>Restricted Stock</I>: A Restricted
    Stock is an award or issuance of Shares under Section&nbsp;7,
    subject to certain restrictions and the risk of forfeiture and
    terms as are expressed in the agreement or other document
    evidencing the Award.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">5.2&nbsp;<I>Grants of Awards.</I> An Award may
consist of one such arrangement or benefit or two or more of
them in tandem, and the terms as established by the Committee
for all Awards granted hereunder may include performance
standards derived from the Qualifying Performance Criteria, and
the receipt of any Award may be contingent on performance
standards derived from the Qualifying Performance Criteria.
</FONT>

<P align="left">
<B><FONT size="2">Section
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee may grant an Option or provide for
the grant of an Option, either from time to time in the
discretion of the Committee or automatically upon the occurrence
of specified events, including, without limitation, the
achievement of performance goals, the satisfaction of an event
or condition within the control of the recipient of the Award or
within the control of others.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.1&nbsp;<I>Option Document.</I> Each Option
Document shall contain provisions regarding (a)&nbsp;the number
of Shares that may be issued upon exercise of the Option,
(b)&nbsp;the purchase price of the Shares and the means of
payment for the Shares, (c)&nbsp;the term of the Option,
(d)&nbsp;such terms and conditions on the vesting and/or
exercisability of an Option as may be determined from time to
time by the Committee, (e)&nbsp;restrictions on the transfer of
the Option and forfeiture provisions and (f)&nbsp;such further
terms and conditions, in each case not inconsistent with this
Plan as may be determined from time to time by the Committee.
Option Documents evidencing ISOs shall contain such terms and
conditions as may be necessary to qualify, to the extent
determined desirable by the Committee, with the applicable
provisions of Section&nbsp;422 of the Code.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.2&nbsp;<I>Option Price.</I> The purchase price
per share of the Shares subject to each Option granted under
this Plan shall equal or exceed 100% of the fair market value of
a Share on the date the Option is granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.3&nbsp;<I>Option Term.</I> The &#147;Term&#148;
of each Option granted under this Plan, including any ISOs,
shall be 10&nbsp;years from the date of its grant, unless the
Committee provides for a lesser term.
</FONT>

<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.4&nbsp;<I>Option Vesting.</I> Options granted
under this Plan shall be exercisable at such time and in such
installments during the period prior to the expiration of the
Option&#146;s Term as determined by the Committee. The Committee
shall have the right to make the timing of the ability to
exercise any Option granted under this Plan subject to continued
employment, the passage of time and/or such performance
requirements as deemed appropriate by the Committee. At any time
after the grant of an Option the Committee may reduce or
eliminate any restrictions surrounding any Participant&#146;s
right to exercise all or part of the Option, except that no
Option shall first become exercisable within one (1) year from
its date of grant, other than as may be provided in an Award by
the Committee in the Option upon a change of control, a
fundamental Change, death or disability of the Eligible Person.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.5&nbsp;<I>Termination of Employment other than
as a Result of Death or Disability.</I> An ISO of any
Participant who shall cease to be an Employee other than as a
result of his death or disability shall be exercisable only to
the extent exercisable on the date of termination of employment
(i.e., to the extent vested) and must be exercised on or before
the option expiration date specified in the Option Agreement but
is no event later than the date that is three (3)&nbsp;months
following the date of termination of employment. To the extent
any ISO is not exercisable on the date of termination of
employment (i.e., to the extent not vested) such ISO shall
terminate on the date of termination of employment. To the
extent any ISO is not exercised within the time period provided,
such ISO shall terminate as of the date of expiration of such
time period. Nothing in the Plan shall be construed as imposing
any obligation on the Company to continue the employment of any
Participant or shall interfere or restrict in any way the rights
of the Company to discharge any Employee at any time for any
reason whatsoever, with or without cause.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.6&nbsp;<I>Payment of Exercise Price.</I> The
exercise price of an Option shall be paid in the form of one of
more of the following, as the Committee shall specify, either
through the terms of the Option Document or at the time of
exercise of an Option: (a)&nbsp;cash or certified or
cashiers&#146; check, (b)&nbsp;shares of capital stock of the
Company that have been held by the Participant for such period
of time as the Committee may specify, (c)&nbsp;other property
deemed acceptable by the Committee, (d)&nbsp;a reduction in the
number of Shares or other property otherwise issuable pursuant
to such Option, (e)&nbsp;payment under an arrangement with a
broker selected or approved by the Company where payment is made
pursuant to an irrevocable commitment by the broker to deliver
to the Company proceeds from the sale of the Shares issuable
upon exercise of the Option, or (f)&nbsp;any combination of
(a)&nbsp;through (d).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">6.7&nbsp;<I>No Option Repricing.</I> Without the
approval of stockholders, the Company shall not reprice any
Options. For purposes of this Plan, the term &#147;reprice&#148;
shall mean lowering the exercise price of previously awarded
Options within the meaning of Item&nbsp;402(i) under Securities
and Exchange Commission Regulation&nbsp;S-K (including canceling
previously awarded Options and regranting them with a lower
exercise price).
</FONT>

<P align="left">
<B><FONT size="2">Section
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted Stock
Awards</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee is authorized to make Awards of
Restricted Stock to Participants in such amounts and subject to
such terms and conditions as may be determined by the Committee.
All Awards of Restricted Stock shall be evidenced by a
Restricted Stock Award Agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">7.1&nbsp;<I>Issuance and Restrictions.</I>
Restricted Stock shall be subject to such restrictions on
transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right
to vote Restricted Stock or the right to receive dividends on
the Restricted Stock). These restrictions may lapse separately
or in combination of such times, under such circumstances, in
such installments, upon the satisfaction of continued
employment, standards derived from the Qualifying Performance
Criteria, lapse of time, certain acceleration events like death
or disability or otherwise, as the Committee determines at the
time of the grant of the Award or thereafter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">7.2&nbsp;<I>Forfeiture.</I> Except as otherwise
determined by the Committee at the time of the grant of the
Award or thereafter, upon termination of employment during the
applicable restriction period or upon failure to satisfy a
standard derived from the Qualifying Performance Criteria during
the applicable restriction period, Restricted Stock that is at
that time subject to restrictions shall be forfeited and
re-acquired by the Company; provided, however, that the
Committee may provide in any Award Agreement that restrictions
or forfeiture conditions relating to Restricted Stock will be
waived in whole or in part in the event of terminations resulting
</FONT>

<P align="center"><FONT size="2">4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">from specified causes, and the Committee may in
other cases waive in whole or in part restrictions or forfeiture
conditions relating to Restricted Stock.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">7.3&nbsp;<I>Certificates for Restricted
Stock.</I> Restricted Stock granted under the Plan may be
evidenced in such manner as the Committee shall determine. If
certificates representing shares of Restricted Stock are
registered in the name of the Participant, certificates must
bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such Restricted Stock.
</FONT>

<P align="left">
<B><FONT size="2">Section
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Shares</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee is authorized to grant Performance
Shares to Participants on such terms and conditions as may be
determined by the Committee. The Committee shall have the
complete discretion to determine the number of Performance
Shares granted to each Participant. All Awards of Performance
Shares shall be evidenced by an Award Agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">8.1&nbsp;<I>Right to Payment.</I> A grant of
Performance Shares gives the Participant the right to a number
of Shares, contingent upon certain performance standards
established by the Committee and derived from the Qualifying
Performance Criteria, and certain other terms and conditions as
may be established by the Committee. Once the conditions and
terms for the performance Shares have been met, the Performance
Shares shall be payable the Company either in cash or Shares (or
both) by reference to the fair market value of the Shares
enumerated in the Performance Shares and the timing of such
payment of cash or Shares shall set forth in the Award for the
Performance Shares by the Committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">8.2&nbsp;<I>Other Terms.</I> The time period for
the measurement of any performance standard or criteria shall be
any time period established by the Committee, but under no
circumstance shall a Performance Shares be granted after the
expiration of the Plan, and the applicable performance
associated with such Performance Share must begin before the
expiration of this Plan. The cash or Shares paid with respect to
Performance Shares may be paid in a lump sum or in installments
following the close of the performance period or, in accordance
with procedures established by the Committee, on a deferred
basis.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;9.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Other Provisions Applicable to
    Awards</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.1&nbsp;<I>Transferability.</I> Unless the
agreement or other document evidencing an Award (or an amendment
thereto authorized by the Committee) expressly states that the
Award is transferable as provided hereunder, no Award granted
under this Plan, nor any interest in such Award, may be sold,
assigned, conveyed, gifted, pledged, hypothecated or otherwise
transferred in any manner prior to the vesting or lapse of any
and all restrictions applicable thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.2&nbsp;<I>Qualifying Performance Criteria.</I>
For purposes of this Plan, the term &#147;Qualifying Performance
Criteria&#148; shall mean any one or more of the following
performance criteria, either individually, alternatively or in
any combination, applied to either the Company as a whole, to a
business unit or subsidiary, or based on comparisons of any of
the performance measures relative to other companies, either
individually, alternatively or in any combination, and measured
either annually or cumulatively over a period of years, on an
absolute basis or relative to a pre-established target, to
previous years&#146; results or to a designated comparison
group, in each case as specified by the Committee in the Award:
(a)&nbsp;cash flow, (b)&nbsp;earnings per share or increases of
same, (c)&nbsp;earnings before interest, taxes and amortization,
(d)&nbsp;return on equity, (e)&nbsp;total stockholder return,
(f)&nbsp;share price performance, (g)&nbsp;return on capital or
investment, (h)&nbsp;return on assets or net assets,
(i)&nbsp;revenue, (j)&nbsp;income or net income,
(k)&nbsp;operating income or net operating income,
(l)&nbsp;operating profit or net operating profit,
(m)&nbsp;operating margin or profit margin, (n)&nbsp;return on
operating revenue, (o)&nbsp;pre-tax or after-tax profit levels
expressed in either absolute dollars, (p)&nbsp;revenues or
revenue growth, (q)&nbsp;economic or cash value added,
(r)&nbsp;results of customer satisfaction surveys,
(s)&nbsp;other measures of performance, quality, safety,
productivity or process improvement, (t)&nbsp;market share,
(u)&nbsp;overhead or other expense reduction, (v)&nbsp;departure
or on-time arrival performance, and (w)&nbsp;baggage handling.
These factors may have a minimum performance standard, a target
performance standard and a maximum performance standard. The
Committee shall appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to exclude
any of the following events that occurs during a performance
period: (i)&nbsp;asset write-downs, (ii)&nbsp;litigation or
claim judgments or settlements, (iii)&nbsp;the effect of changes
in tax law, accounting principles or other such laws
</FONT>

<P align="center"><FONT size="2">5
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">or provisions affecting reported results,
(iv)&nbsp;accruals for reorganization and restructuring programs
and (v)&nbsp;any extraordinary non-recurring items as described
in Accounting Principles Board Opinion No.&nbsp;30 and/or in
management&#146;s discussion and analysis of financial condition
and results of operations appearing in the Company&#146;s annual
report to stockholders for the applicable year.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.3&nbsp;<I>Dividends.</I> Unless otherwise
provided by the Committee, no adjustment shall be made in Shares
issuable under Awards on account of cash dividends that may be
paid or other rights that may be issued to the holders of Shares
prior to their issuance under any Award. The Committee shall
specify whether dividends or dividend equivalent amounts shall
be paid to any Participant with respect to the Shares subject to
any Award that have not vested or been issued or that are
subject to any restrictions or conditions on the record date for
dividends.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.4&nbsp;<I>Documents Evidencing Awards.</I>
Except for ISOs prior to the effective date of the Plan as set
forth in Section&nbsp;17, the Committee shall, subject to
applicable law, determine the date an Award is deemed to be
granted, which for purposes of this Plan shall not be affected
by the fact that an Award is contingent on subsequent
stockholder approval of this Plan. The Committee or, except to
the extent prohibited under applicable law, its delegate(s) may
establish the terms of agreements or other documents evidencing
Awards under this Plan and may, but need not, require as a
condition to any such agreement&#146;s or document&#146;s
effectiveness that such agreement or document be executed by the
Participant and that such Participant agree to such further
terms and conditions as specified in such agreement or document.
The grant of an Award under this Plan shall not confer any
rights upon the Participant holding such Award other than such
terms, and subject to such conditions, as are specified in this
Plan as being applicable to such type of Award (or to all
Awards) or as are expressly set forth in the agreement or other
document evidencing such Award.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.5&nbsp;<I>Tandem Stock or Cash Rights.</I>
Either at the time an Award is granted or by subsequent action,
the Committee may, but need not, provide that an Award shall
contain as a term thereof, a right, either in tandem with the
other rights under the Award or as an alternative thereto, of
the Participant to receive, without payment to the Company, a
number of Shares, cash or a combination thereof, the amount of
which is determined by reference to the value of the Award.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.6&nbsp;<I>Financing.</I> The Committee may in
its discretion provide financing to a Participant in a principal
amount sufficient to pay the purchase price of any Award and/or
to pay the amount of taxes required by law to be withheld with
respect to any Award. Any such loan shall be subject to all
applicable legal requirements and restrictions pertinent
thereto, including Regulation&nbsp;U promulgated by the Federal
Reserve Board. The grant of an Award shall in no way obligate
the Company or the Committee to provide any financing whatsoever
in connection therewith.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">9.7&nbsp;<I>Additional Restrictions on
Awards.</I> Either at the time an Award is granted or by
subsequent action, the Committee may, but need not, impose such
restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by a
Participant or other subsequent transfers by a Participant of
any Shares issued under an Award, including without limitation
(a)&nbsp;restrictions under an insider trading policy,
(b)&nbsp;restrictions designed to delay and/or coordinate the
timing and manner of sales by Participants, and
(c)&nbsp;restrictions as to the use of a specified brokerage
firm for such resales or other transfers.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;10.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Changes in Capital Structure</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">10.1&nbsp;<I>Corporate Actions Unimpaired.</I>
The existence of outstanding Awards (including any Options)
shall not affect in any way the right or power of the Company or
its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations, exchanges, or other changes
in the Company&#146;s capital structure or its business, or any
merger or consolidation of the Company, or any issuance of
Shares or other securities or subscription rights thereto, or
any issuance of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Shares or other securities of
the Company or the rights thereof, or the dissolution or
liquidation of the Company, or any sale or transfer of all or
any part of its assets or business, or any other corporate act
or proceeding, whether of a similar character or otherwise.
Further, except as expressly provided herein or by the
Committee, (a)&nbsp;the issuance by the Company of shares of
stock of any class of securities convertible into shares of
stock of any class, for cash, property, labor or services, upon
direct sale, upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations
of the
</FONT>

<P align="center"><FONT size="2">6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Company convertible into such shares or other
securities, (b)&nbsp;the payment of a dividend in property other
than Shares, or (c)&nbsp;the occurrence of any similar
transaction, and in any case whether or not for fair value,
shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number of Shares subject to Options or
other Awards theretofore granted or the purchase price per
Share, unless the Committee shall determine in its sole
discretion that an adjustment is necessary to provide equitable
treatment to a Participant.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">10.2&nbsp;<I>Adjustments Upon Certain Events.</I>
If the outstanding Shares or other securities of the Company, or
both, for which the Award is then exercisable or as to which the
Award is to be settled shall at any time be changed or exchanged
by declaration of a stock dividend, stock split, combination of
shares, recapitalization, or reorganization, the Committee may
appropriately and equitably adjust the number and kind of Shares
or other securities which are subject to the Plan or subject to
any Awards theretofore granted, and the exercise or settlement
prices of such Awards, so as to maintain the proportionate
number of Shares or other securities without changing the
aggregate exercise or settlement price, provided, however, that
such adjustment shall be made so as to not affect the status of
any Award intended to qualify as an ISO or as &#147;performance
based compensation&#148; under Section&nbsp;162(m) of the Code.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;11.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Mergers and Liquidation</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as limited by the provisions of Code
Section&nbsp;422 of the Code and the terms of any individual
Award, if the company is the surviving corporation in any merger
or consolidation, all Awards shall remain in force, and any:
(1)&nbsp;Option granted under the Plan shall remain outstanding
pursuant to the terms of the Plan and the Award; and
(2)&nbsp;Restricted Stock granted under the Plan shall continue
to be outstanding pursuant to the terms of the Award and this
Plan. Except to the extent otherwise provided in an Award
document, by the Board, or as limited by Code Section&nbsp;422,
dissolution or liquidation of the Company shall cause every
unvested Option, Restricted Stock or other Award for which there
remains contingencies, conditions and unmet performance
standards to terminate. Except as limited by Code
Section&nbsp;422, a merger or consolidation in which the Company
is not the surviving corporation shall also cause every unvested
Option, Restricted Stock or other Award for which there remains
contingencies, conditions and unmet performance standards to
terminate unless specifically provided otherwise in an Award
document or by the Board.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;12.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Taxes</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">12.1&nbsp;<I>Withholding Requirements.</I> The
Committee may make such provisions or impose such conditions as
it may deem appropriate for the withholding or payment by a
Participant of any taxes that the Committee determines are
required in connection with any Award granted under this Plan,
and a Participant&#146;s rights in any Award are subject to
satisfaction of such conditions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">12.2&nbsp;<I>Payment of Withholding Taxes.</I>
Notwithstanding the terms of Section&nbsp;12.1, the Committee
may provide in the agreement or other document evidencing an
Award or otherwise that all or any portion of the taxes required
to be withheld by the Company or, if permitted by the Committee,
desired to be paid by the Participant, in connection with the
exercise, vesting, settlement or transfer of any other Award
shall be paid or, at the election of the Participant, may be
paid by the Company by withholding shares of the Company&#146;s
capital stock otherwise issuable or subject to such Award, or by
the Participant delivering previously owned shares of the
Company&#146;s capital stock, in each case having a fair market
value equal to the amount required or elected to be withheld or
paid, or by a broker selected or approved by the Company paying
such amount pursuant to an irrevocable commitment by the broker
to deliver to the Company proceeds from the sale of the Shares
issuable under the Award. Any such election is subject to such
conditions or procedures as may be established by the Committee
and may be subject to approval by the Committee.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;13.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Amendments or Termination</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board may amend, alter or discontinue this
Plan or any agreement or other document evidencing an Award made
under this Plan but, except as provided pursuant to the
anti-dilution adjustment provisions of Section&nbsp;10.2, no
such amendment shall, without the approval of the stockholders
of the Company:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;change the maximum number of shares of
    Common Stock for which Awards may be granted under this Plan;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;reduce the price at which Options may be
    granted below the price provided for in Section&nbsp;6.2;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(c)&nbsp;reduce the exercise price of outstanding
    Options;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(d)&nbsp;extend the term of this Plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(e)&nbsp;change the class of persons eligible to
    be Eligible Persons or Participants; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(f)&nbsp;increase the number of shares that are
    eligible for non-Option Awards.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board may amend, alter or discontinue the
Plan or any agreement evidencing an Award made under the Plan,
but no amendment or alteration shall be made which would impair
the rights of any Award holder, without such holder&#146;s
consent, under any Award theretofore granted; provided that no
such consent shall be required if the Committee determines in
its sole discretion and prior to the date of any change in
control, recapitalization, stock dividend, stock split,
reorganization, merger, consolidation or similar type
transaction that such amendment or alteration either is required
or advisable in order for the Company, the Plan, or any Award
granted, to satisfy any law or regulation or to meet the
requirements of any accounting standard.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;14.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Compliance with Other Laws and
    Regulations.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Plan, the grant and exercise of Awards
thereunder, and the obligation of the Company to sell, issue or
deliver Shares under such Awards, shall be subject to all
applicable federal, state and foreign laws, rules and
regulations and to such approvals by any governmental or
regulatory agency as may be required. The Company shall not be
required to register in a Participant&#146;s name or deliver any
Shares prior to the completion of any registration or
qualification of such Shares under any federal, state or foreign
law or any ruling or regulation of any government body which the
Committee shall determine to be necessary or advisable. This
Plan is intended to constitute an unfunded arrangement for the
Eligible Persons.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No Option shall be exercisable unless a
registration statement with respect to the Option is effective
or the Company has determined that such registration is
unnecessary. Unless the Awards and Shares covered by this Plan
have been registered under the Securities Act of 1933, as
amended, or the Company has determined that such registration is
unnecessary, each person receiving an Award and/or Shares
pursuant to any Award may be required by the Company to give a
representation in writing that such person is acquiring such
Shares for his or her own account for investment and not with a
view to, or for sale in connection with, the distribution of any
part thereof.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;15.</FONT></B></TD>
    <TD>
    <B><FONT size="2">No Right to Company Employment</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Nothing in this Plan or as a result of any Award
granted pursuant to this Plan shall confer on any individual any
right to continue in the employ of the Company or interfere in
any way with the right of the Company to terminate an
individual&#146;s employment at any time. The agreements or
other documents evidencing Awards may contain such provisions as
the Committee may approve with reference to the effect of
approved leaves of absence.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;16.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Liability of Company</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and any Affiliate which is in
existence or hereafter comes into existence shall not be liable
to a Participant, an Eligible Person or other persons as to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;<I>The Non-Issuance of Shares.</I> The
    non-issuance or sale of shares as to which the Company has been
    unable to obtain from any regulatory body having jurisdiction
    the authority deemed by the Company&#146;s counsel to be
    necessary to the lawful issuance and sale of any shares
    hereunder; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;<I>Tax Consequences.</I> Any tax
    consequence expected, but not realized, by any Participant,
    Eligible Person or other person due to the receipt, exercise or
    settlement of any Option or other Award granted hereunder.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;17.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Effectiveness and Expiration of Plan</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Plan shall be effective on the date the
Company&#146;s stockholders adopt this Plan, and no ISOs shall
be granted prior to the Company&#146;s stockholders adoption of
this Plan. All Awards granted under this Plan are subject to,
and may not be exercised before the approval of this Plan by the
stockholders and the Awards may
</FONT>

<P align="center"><FONT size="2">8
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">not be exercised prior to the first anniversary
date of the effective date of this Plan. Stockholder approval of
the Plan shall be by the affirmative vote of the holders of a
majority of the outstanding shares of the Company present, or
represented by proxy, and entitled to vote, at a meeting of the
Company&#146;s stockholders or by written consent in accordance
with the laws of the State of Delaware; provided that if such
approval by the stockholders of the Company is not forthcoming,
all Awards previously granted under this Plan shall be void. No
Awards shall be granted pursuant to this Plan more than 10 years
after the effective date of this Plan.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;18.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Incentive Stock Options</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding anything in the Plan to the
contrary, it is the intention of the Company and the Committee
that all terms and provisions relating to Incentive Stock
Options of this Plan shall be consistent with the requirements
of Code Section&nbsp;422 and the applicable regulations
thereunder, as of the effective date of this plan, and to the
extent any term or provision of this Plan relating to Incentive
Stock Options is inconsistent with Code Section&nbsp;422 and the
applicable regulations thereunder at that date, the term or
provision shall be read, interpreted or substituted so as to be
consistent with the applicable provision of Code
Section&nbsp;422 or the regulations thereunder.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;19.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Non-Exclusivity of Plan</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither the adoption of this Plan by the Board
nor the submission of this Plan to the stockholders of the
Company for approval shall be construed as creating any
limitations on the power of the Board or the Committee to adopt
such other incentive arrangements as either may deem desirable,
including without limitation, the granting of restricted stock
or stock options otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable
only in specific cases.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;20.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Governing Law</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Plan and any agreements or other documents
hereunder shall be interpreted and construed in accordance with
the laws of the State of Nevada and applicable federal law. The
Committee may provide that any dispute as to any Award shall be
presented and determined in such forum as the Committee may
specify, including through binding arbitration. Any reference in
this Plan or in the agreement or other document evidencing any
Award to a provision of law or to a rule or regulation shall be
deemed to include any successor law, rule or regulation of
similar effect or applicability.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Section&nbsp;21.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Miscellaneous Matters</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.1&nbsp;<I>Annulment of Awards.</I> The grant
of any Award under the Plan payable in cash is provisional until
cash is paid in settlement thereof. The grant of any Award
payable in Shares is provisional until the Participant becomes
entitled to the certificates in settlement thereof. In the event
the employment of a Participant is terminated for cause (as
defined below), any Award which is provisional shall be annulled
as of the date of such termination for cause. For the purpose of
this Section&nbsp;21.1, the term &#147;terminated for
cause&#148; means any discharge for violation of the policies
and procedures of the Company or any Subsidiary or for other job
performance or conduct which is detrimental to the best
interests of the Company or a Subsidiary.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.2&nbsp;<I>Securities Law Restrictions.</I> No
Shares shall be issued under the Plan unless counsel for the
Company shall be satisfied that such issuance will be in
compliance with applicable Federal and state securities laws.
Certificates for Shares delivered under the Plan may be subject
to such stock-transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations, and
other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Shares is then listed, and any
applicable Federal or state securities law. The Committee may
cause a legend or legends to be put on any such certificates to
refer to those restrictions. Further, without limiting the
foregoing, each person exercising an Option or Performance
Shares or receiving Restricted Stock may be required by the
Company to give a representation in writing that he or she is
acquiring Shares for his or her own account for investment and
not with a view to, or for sale in connection with, the
distribution of any part thereof (regardless of whether such
option and Shares covered by the Plan are registered under the
Securities Act of 1933, as amended). As a condition of transfer
of the certificate evidencing Shares, the Committee may obtain
such other agreements or undertakings, if any, that it may deem
necessary or appropriate to assume compliance with any
provisions of
</FONT>

<P align="center"><FONT size="2">9
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">the Plan or any law or regulation. Certificates
for Shares delivered under the Plan may be subject to such stock
transfer orders and other restrictions as the Board may deem
advisable under the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange
upon which the Shares are then listed, and any applicable
Federal or state securities laws. The Board may cause a legend
or legends to be put on any such certificate to refer to those
restrictions.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.3&nbsp;<I>Award Agreement.</I> Each
Participant receiving an Award under the Plan shall enter into
an, Award Agreement with the Company in a form specified by the
Committee agreeing to the terms and conditions of the Award and
such related matters as the Committee, in its sole discretion,
shall determine.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.4&nbsp;<I>Costs of Plan.</I> The costs and
expenses of administering the Plan shall be borne by the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.5&nbsp;<I>Tax Reimbursement Payments to
Participants.</I> The Committee, pursuant to the terms of the
agreements or other documents pursuant to which specific Awards
are made under the 2003 Plan, may agree to reimburse
Participants for some or all of the federal, state and local
income taxes associated with the grant or exercise of an Award
or the receipt of the cash or Shares from an Award, or the 20%
excise tax on any &#147;excess parachute payments&#148; under
Code Sections&nbsp;280G and Code Section&nbsp;4999, and may
agree to reimburse such Participants for some or all the
additional federal, state and local income tax associated with
the payments made under this Section&nbsp;21.5.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.6&nbsp;<I>Government Regulations.</I> The Plan
and the granting and exercise of Options and Performance Shares
hereunder, and the obligations of the Company to sell and
deliver Shares under such Options and Performance Shares, shall
be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national
securities exchanges as may be required.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">21.7&nbsp;<I>Interpretation.</I> If any provision
of the Plan is held invalid for any reason, such holding shall
not affect the remaining provisions of the Plan, but instead the
Plan shall be construed and enforced as if such provisions had
never been included in the Plan. Headings contained in the Plan
are for convenience only and shall in no manner be construed as
part of this Plan. Any reference to the masculine, feminine or
neuter gender shall be a reference to such other gender as is
appropriate.
</FONT>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<FONT size="2"> <B>MESA AIR GROUP, INC.</B>
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF MESA
AIR GROUP, INC. FOR THE ANNUAL MEETING OF
SHAREHOLDERS</FONT></B><FONT size="2">&nbsp;The undersigned
shareholder of Mesa Air Group, Inc., a Nevada corporation (the
&#147;Company&#148;), hereby acknowledges receipt of the Notice
of Annual Meeting of Shareholders, dated January&nbsp;23, 2004,
and hereby appoints Jonathan&nbsp;G. Ornstein or Brian&nbsp;S.
Gillman and each of them, proxies and attorneys-in-fact, with
full power of substitution, on behalf and in the name of the
undersigned, to represent the undersigned at the Annual Meeting
of Shareholders of MESA AIR GROUP, INC. to be held at the
Phoenix Airport Marriott, 1101&nbsp;N. 44th&nbsp;Street,
Phoenix, Arizona, on March&nbsp;2, 2004, at 10:00&nbsp;a.m.,
Arizona time, and at any adjournment(s) or postponement(s)
thereof, and to vote all shares of Common Stock that the
undersigned would be entitled to vote if then and there
personally present, on the matters set forth below.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">1.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ELECTION OF DIRECTORS
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;</FONT></TD>
    <TD align="left">
    <B><FONT size="2">FOR</FONT></B><FONT size="2"> all nominees
    listed below (except as marked to the contrary below):
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<FONT size="2">Jonathan G. Ornstein, Daniel J. Altobello, Robert
Beleson, Ronald R. Fogleman, Joseph L. Manson, Maurice A.
Parker, Julie Silcock
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;</FONT></TD>
    <TD align="left">
    <B><FONT size="2">WITHHOLD
    AUTHORITY&nbsp;</FONT></B><FONT size="2">to vote for all
    nominees listed above
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">INSTRUCTIONS: To withhold authority to vote for
any individual nominee, write that nominee&#146;s name in the
space provided below:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">2.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">PROPOSAL TO RATIFY THE COMPANY&#146;S 2003
    EMPLOYEE STOCK INCENTIVE PLAN
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;FOR</B>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;AGAINST</B>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;ABSTAIN</B>
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">3.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">PROPOSAL TO ADOPT A BYLAW PROVISION TO SUBJECT TO
    SHAREHOLDER VOTE ON THE NEXT SHAREHOLDER BALLOT, THE ADOPTION OR
    EXTENSION OF ANY CURRENT OR FUTURE POISON PILL AND, ONCE
    ADOPTED, TO SUBJECT TO SHAREHOLDER VOTE ON THE NEXT SHAREHOLDER
    BALLOT THE REMOVAL OF THIS BYLAW PROVISION
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;FOR</B>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;AGAINST</B>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;ABSTAIN</B>
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">(continued, and to be signed, on other
side)</FONT></I>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<FONT size="2"> <I>(continued from other side)</I>
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></I><FONT size="2">4.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">RATIFICATION OF DELOITTE&nbsp;&#38; TOUCHE AS THE
    COMPANY&#146;S INDEPENDENT AUDITORS
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;FOR</B>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;AGAINST</B>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2"><FONT face="wingdings">&#111;</FONT><B>&nbsp;ABSTAIN</B>
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER
DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION
IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148; THE ELECTION
OF THE NOMINEES NAMED ABOVE, &#147;FOR&#148; THE PROPOSAL TO
RATIFY THE COMPANY&#146;S 2003 EMPLOYEE STOCK INCENTIVE PLAN,
&#147;AGAINST&#148; THE PROPOSAL TO ADOPT A BYLAW PROVISION TO
SUBJECT TO SHAREHOLDER VOTE ON THE NEXT SHAREHOLDER BALLOT, THE
ADOPTION OR EXTENSION OF ANY CURRENT OR FUTURE POISON PILL AND,
ONCE ADOPTED, TO SUBJECT TO SHAREHOLDER VOTE ON THE NEXT
SHAREHOLDER BALLOT THE REMOVAL OF THIS BYLAW PROVISION,
&#147;FOR&#148; THE PROPOSAL TO RATIFY THE SELECTION OF DELOITTE
&#38; TOUCHE AS THE COMPANY&#146;S INDEPENDENT AUDITORS, AND AS
SAID PROXIES DEEM ADVISABLE ON SUCH MATTERS AS MAY COME BEFORE
THE MEETING.</B>
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="48%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="2">Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;2004</FONT></B></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="2">Please sign exactly as your name appears on
    the front of this Proxy Card. When shares are held in common or
    in joint tenancy, both should sign. When signing as attorney,
    executor, administrator, trustee or guardian, please give full
    title as such. If a corporation, sign in full corporate name by
    President or other authorized officer. If a partnership, please
    sign in partnership name by an authorized person.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">SIGNATURES: <BR>
 <BR>
 <HR size="1" width="42%" align="left" noshade></FONT></B>

<P align="left">
<HR size="1" width="42%" align="left" noshade>

<P align="left">
<HR size="1" width="42%" align="left" noshade>

<P align="left">
<B><FONT size="2">Please return in the enclosed, postage-paid
envelope.</FONT></B>

<P align="left">
<B><FONT size="2">I
Will&nbsp;<FONT face="wingdings">&#111;</FONT></FONT></B><FONT size="2">&nbsp;&nbsp;&nbsp;<B>Will
not&nbsp;<FONT face="wingdings">&#111;</FONT></B>&nbsp;&nbsp;&nbsp;attend
the Meeting.
</FONT>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>p68687p6868700.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 p68687p6868700.gif
M1TE&.#EAQ`!I`(```/___P```"'Y!```````+`````#$`&D```+_A(^IR^T/
MHYRTVHNSWCR&#X+=2);FB8E)B+;N"U.?%\3VC9,J7>?^[]LA9A8B\(C4A7H&
MX\69C$HEPA[TR9QJM\-LL^;5A+GDH_`[SES+;-P:D%[)XNQW6YRV'\X/O3Q*
M=U>4YS<3J'"XE_CBE],X.&;H8+@X1%79\GBC.<=@U4"$J0C!%R3*>$H*VN09
MFD(#F)HI"YJWUWK[VD<[P@E3*K8*%\EKN1NK!9P29T7<&^B+$NVB/"C,BJAT
MG#0]6_RWP.2LLXW4+7T>7IO;=4+WS9%N4MV)BVT\/RDE7T(_8>=J!3R!^O8E
MX\<NW">"[M;M&XBH$L*$ZN!D<\<,(AYJ__\@0KOW!9U#9!Q)3;2X*XS&=O9(
M9N+1"Q:X>83`++F)4^/);(W\49&)CR::G#F'$66Q41K(EAMZ5D%7-*2:F\M>
M#BO7E%#(4-^.9E22:N>?0@/7B#!":2I.BBS[88GQ\9E"FZ-X(66HL*&U7^^T
M13SC4Q=3;BL]C>Q`S&QAMFU=,FJE<^Y@OY/-+(Z8U^U?R$HG77ZR:7._+'<)
MBKWJ><OGF6CT*M**.F8?+J<'!ZXGM6)LQ%@?AKYUF2NSQL%Z.WZ\E=J2:[FG
MFJ2]VI**U5PS!WW[7+7'4G>CC\*,%[1)[[CQK/W.V&KX]!XND>\8+W%IE#;&
MK;^$'WJ\6I*NH_^ZJ!M\^6VB!T*`I>7%>[LU1YQQ_-6W7$%94?4::Y55<,4;
MG/AR6T=$91>?8@F.)T^&PP%UWWQS>-5,(E",")-M)-JETE>>M5BA0!Q^*&%[
MZ`6FS(O;E!A)CSIV(<Z!3D4X"Y),,E8-C`X1*5J`3KZ6I!-I_:6B<E@VIN0[
MI,UF%)(R5`D>EFC199&6;!K5X6A?_@B&DV+Z-]8.MVEX8IE;-G/5FD/%B1&.
MI"496YT`C5D04EU>N*B>+689%9P'V=2?5-6Q\F::]&&:BZ-[VJBCE-U1PF1M
M$](E:*+)?6JFFE2QRJ8F!1X5GIL`"G)6;@%A(RI(+_)Q%J:(H@@9HQ3QZ2K(
ME.QL":R>UC%X9&M#T8<F;JI.@=:S!Y:9(WKNB<MCN'L1VJRUL)J[;H/Q)5OI
M,NBF^V=S9M5!85;IJJ$IM?O^2T:KCP),L$'?#5QPPC^H)*["#@-1X\,2&VSA
MQ!;79]C%&O^VZ\8>N];QQR+SEO'()N]7\LDJ[V7ERB[[V/++,J=<\<PVLZ?@
MS7?TJ7//V-;L\\L\!VWST$3+;/31+B>MM,I,-VWRTU"+K.'4,]MBM=`T9QWU
MUEQ37>37*X<M]LEDESURAF@['?+:&POI=M3*QOVQEG3+S=[=$_^JM\=\]_WV
/O(`W*_C@O.9L.`D%```[
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>p68687p6868705.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 p68687p6868705.gif
M1TE&.#EA40(R`??_````````,P``9@``F0``S```_P`S```S,P`S9@`SF0`S
MS``S_P!F``!F,P!F9@!FF0!FS`!F_P"9``"9,P"99@"9F0"9S`"9_P#,``#,
M,P#,9@#,F0#,S`#,_P#_``#_,P#_9@#_F0#_S`#__S,``#,`,S,`9C,`F3,`
MS#,`_S,S`#,S,S,S9C,SF3,SS#,S_S-F`#-F,S-F9C-FF3-FS#-F_S.9`#.9
M,S.99C.9F3.9S#.9_S/,`#/,,S/,9C/,F3/,S#/,_S/_`#/_,S/_9C/_F3/_
MS#/__V8``&8`,V8`9F8`F68`S&8`_V8S`&8S,V8S9F8SF68SS&8S_V9F`&9F
M,V9F9F9FF69FS&9F_V:9`&:9,V:99F:9F6:9S&:9_V;,`&;,,V;,9F;,F6;,
MS&;,_V;_`&;_,V;_9F;_F6;_S&;__YD``)D`,YD`9ID`F9D`S)D`_YDS`)DS
M,YDS9IDSF9DSS)DS_YEF`)EF,YEF9IEFF9EFS)EF_YF9`)F9,YF99IF9F9F9
MS)F9_YG,`)G,,YG,9IG,F9G,S)G,_YG_`)G_,YG_9IG_F9G_S)G__\P``,P`
M,\P`9LP`F<P`S,P`_\PS`,PS,\PS9LPSF<PSS,PS_\QF`,QF,\QF9LQFF<QF
MS,QF_\R9`,R9,\R99LR9F<R9S,R9_\S,`,S,,\S,9LS,F<S,S,S,_\S_`,S_
M,\S_9LS_F<S_S,S___\``/\`,_\`9O\`F?\`S/\`__\S`/\S,_\S9O\SF?\S
MS/\S__]F`/]F,_]F9O]FF?]FS/]F__^9`/^9,_^99O^9F?^9S/^9___,`/_,
M,__,9O_,F?_,S/_,____`/__,___9O__F?__S/___P``````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````"P`````40(R`0`(_P"O"1Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)LJ3)DRA3JES)LJ7+ES!C#K1BI:`5
M5@19U93)LZ?/GT"#"AU*]"/-%2L&)M4I\.:UI`A7`)A*M:K5JUBS:MW*M:O7
MKV##BAU+MJS9LVC3JEW+MJW;MW#=HMQY#4!3G$\%0F5Z$,`*FH`#"QY,N+#A
MPX@3*U[,N+'CQY`C2YY,N;+ERY@S:][,.;-=E7P_7PL\4'1!`'2+JE[-NK7K
MU[`9FC9I!;5`T:1O([0=N[?OW\"#"\\XFS8`G+@!E]Z=>KCSY]"C2_]9G';-
MY#27]VT^O;OW[^##1_^L7M*IT[SH^1KD+;Z]^_?PG9,'R905U+Q\G=Y?SSV^
M__\`!OC2?"#1A-=,!UZCWG8"-NC@@Q!R1*!0[$5HX8489CAA4!5FZ.&'(+JW
M(5`=AFCBB2@"-R)U_:7HXHLP4@=;B3'6:..-)ZWH$XTX]NCCCQ;IV!./0!9I
MY)&GS=@BDDPVB:.0/!'IY)14G@BE3%)6J>66$5X94Y9<ABEF?%["!.:8:*;9
M79D#+JGFFW#*IV2<=-8IYVMGVJGGGC+BZ2:?@`9JYIR"%FKHH'X>JNBB*+'I
M4IZ,1BKI>(1.:NFE%#G:$J28=HJIIBQQZNFHD8*ZDJBDIFJHJ2JAJNJK?++_
MFI*KL-9*IZR-_FGKKGOBFJ.NO`8;IZ\FT2KLL5426Y*QR#;+I+(D,>OLM$!"
M.Y*TU&9[H[4B8:OMMR]R&Y*WX)9KHK@@D6ONNAI6RNZ[/Z+[D;KPUBN@O![1
M:^^^9+K+[[]6^@OPP![BVY&^!"<<G<$2`JOPP_`QO!'"$%?LF\0:46SQQJYA
M3)S#'(<,G<<8:2SRR1P*C/+*(ZO,\LL9U885R!>17#/-,.?,4'8VX5R1S4'Z
M_"XK0$/,,T%'7^MRPE/MI_-&23<E]$1%9SJUN5))E>#3,7,7];A+`TQT4E-Q
MS='77Z<;]K]E*^B7V1JA?36EB5:LM5+'P8V1%7\)__97L6O;._9I50-<6]^!
M;0UVW0H37=S@>E/D^*.!LVM?TX1-I7CD#6E..>/_7OX5YQ'=_7G'<PLKLY19
MDPY1ZP-6GNWJP,+N^D*0QPXZN[2_;G+%DW\I^[&BK[`Y0Z;??E#RNJ.^;O''
M.^2Y\@5)E;J$P]L*/4:.1Q_YX4-F_VKO&W5/O=M.(XK2@J,ER/YIUT]*?D?F
M*S]]E"G])952"NZD7T)Q":``!TC``AKP@`A,H`(7R,"X*$0G6_,>[O#RM_-`
M92\M\DMG-LC!#GJ0,5+!W`=E-L(2FO"$*.2@"%-X&-/`+H1YFTG7ZC(3Y>B&
M0<':WDG`%[G<[0AI>)&9_O^0EA&H8(<NY/D=G'28O[?!+7@D(N)MVC8:&5XD
M-#4\6A+CQR>^386+%;'=T^[7IZ8(Q'%T2>/>M#,:&](0AZJ:WTO$"#/FE;&*
M=7%B_ZQ8$;I`4"^`W",<1R7'F-AQ93RD4$ZJ@A?[2)$BB-O)4OR'D_25!HQJ
MTDG3)-B20XK,ARGKV4SN=S6=`.9`YSFCFY1()28"I7XH@Z4B&X)*,V$R3*X4
MBBQ#YLD[)N1HMZ1:,*OD15;2CXP;L]YJ9I.U1BK3C&V*5"%9`\6-@7(HIEF=
M7>8WS/%T$TG3=,TU&Z='U;BP;W[9Y",W]4T@:5*#PDDDQ)!)E&P.!(T&::?T
M](G_HUP"AXX$Z^4LH1E(0>+Q4?RLD3^%`]!_-;2>!-F*&J.IIV*F4CH/K=<X
MBV(:B?*1G78*)T9C&#HJ=BRBA?D;04$:)Y%V1Z#K@BDVUVF3CX8JH2!ZITHC
M1M)Z/7-&$L&I0HSIH86V9Y?KDB>>'%)+BN(RA,9K$%+!M5'6C&BG0@5@5MW#
MBNB)[J("FFJVQ&K5!Y+0IJ?:JGC&Z=(`575:,C4G0D3W1;2V2JWA"6%JVBK5
M<FKKIQ?+9U7^HAZ\PJ](M?$B3H1H6-ADE'A^[4TV!\N7IB+4G6]SG#I1]%A>
M5?,WIKE<5`]JUUDU=CJF.QPG,=196]%3L@=)+&E7>M,?_\D6;ZME+5'K%-?6
MS,<^49WH97L$RK>"J+>D4JJ*=L:>T][&N<^AYVUAA-Q.&1>H#"FL+7&D3:WD
M]D)D)=5GA3,AQ4%WM]-A+&*^"][7IJJZOEV(:DN;JQAI%KKA"2^F`'NGA6!U
MNR[ZJI;&2\C(#F=$VG6JB03,I>M&RL&P;8AP66HBJ*))N9_J:<OH.^':ADB(
M[#U2:Q4%7^P^US#T_16(0!RG$1?*Q8$MC58ZG%8/L9BW!EX4A$$;T1FGN%CX
M#0J#]53B.A%X802QI$'/&V2?#)E/11Z6AJ<36H,T\L?+:K),G@PH_>XIRK&9
MT'QI6V,'65A17JX3AJG<D/\J^/\_-]:Q>_6T8_+2DL9W#5"<'VS2+L]9.BO"
MLVGA3)40[ZG.8P)SC,G,1R;'A\N70C27^!N>CAX&R]'2LDD@W2D8-SC'W^FH
MCQD]Z+7JU5:>KI*D#]SCK`BZOGG=+*I!/:8_>\>%<WVUBK^SYUU1&DV*#DZ5
MYXKI:VG:([T.5K!_E.H-YQ.LI(9U=%9GZ%'9>DJKCJY@J3+:8G?KV!GAM$BZ
M2Q5PY_?:3#JRB*J'E00YVCGB'HG<QI1F$4\Y8HM$36#*^>[@Q)LD\Z8WNHOT
M:WPC:'DT+3-PDCT7KYG[J+0^TIH-'FU=`WGALF:)?;P623%E&T8?1S*'O3VN
MATLXXPW_AV&)R%UN-S*IV2`?>*6!B'"2I\OD#RQT2HYBE8Z+4I4\QPKBJNTA
MF+MHV<YVF[X!PV\`M^;?9RLFMZ,6\(28DB99\3EU(WZC@O^'F>U.>)ZI>>IQ
M2_V+T$::JRFR;U>[_$-&#U'(V6P3RM;TS;HL.[+/KF^BA^3J*A_L*2^$]/86
M+HJQ37N_A\+P/O+=0*^Y.LLU^/:)H)@UA>_2O>]U$%-N;O%`:3Q$3!EXR$^;
MZ6Y/FU8'<WBFRCQ$F9>W6F=#5V2"OB>BSR[6K6)Z^``^ZX-?3U_$^7H;<STF
M]9X8X:[B;J?WY+X2,>55>F\AR0,?Z\,G_N91-/>3G#E':D^-_R;%7FJ>0#TG
MNY]ZVE'4=JID7_LV4K=/$NOU>27Y\Y:E\$F.=W[I"Q[GK"9\L-%]`!)[(@$Y
M!K@0]H00%I=E.Z=AQ6-UZ2="7%(=7^1W+3%Q<(=>01)#!"@]Y'=0MU<@4@=Y
MO>9_ZI<F%@A#`,AN2F9\+^@3@#5=2B-C:Q=MNY9I?@-50<1W?=,:P;<PF=,4
M4X=YQ_<@'VAV36,0";@;K38S-C<O.%4<AZ,_/:=Z1*%9*$=>2[=[Z%=N&.A]
M1]@@Q3<7I3<8<0<1ED88;F816W-1[X-2Y4&%5]B".1=#&A@;1-,<^Y-/+%@4
M33A28?@1.@%#5L@5_+2`L75/;E@;2?\F2/^S&PBT;0TD0.Y6B0-$B9BXB9S8
MB9[XB>[7*@>''ABT&Y&T07TV&I1G&($'BEFW'J[8%8G!7XFE&/_'0BVTBKBX
MB[.HB[LX?;S80J?"1KGQ1OQ!$N.5A_2C&3?XA+R7&:WB-.4F85!U;,G'5:FH
M$E*W4P/5*,3H1EL4+:EX5L/1A_?$@7,856@$AKK';8/($?7#C0!2AE!CB'9H
MC-YX0VVD1<PQ$BA8A_"F1]=HA(QT1CQ(2RSXCN&F.3*CD+\1B+BC3>LW4Z*H
MC\48COM7><ZA5PW9'957/`Y33/*H<>F4AO$TAN$FD0Y9D;,RBA>D2OT()"*Y
MDK#!5_>T.MW_1I+'08/OD83R98_"-HS\DQ^5I%5Z0SNY15<3*6^\`9%%,9!!
M!90!V'![Y3ZK=(^88E2Q58TID3OR]U+;=T4J*7+.0SH@^1#OY!<TF1#,@Y,:
M"1WU)SEC27=E>3LVF1,).6XEDC4S@X6]X9/;B)5!(CXO@Y00(9+#A$:9@QVM
M^);4A)(*$9CKMCO*HY6=AY,KV8K3EVM\MW0=$Y;MR(X4YUN"62N6V7EY^7Q!
M]W]KN1%@EI:HT9KQ19GG0X1U%1&(J4NKJ7ZR*1'-)IED2)A'.8T1D99+R1.H
MQYHK46?`^2"MIX:E23P'B9M_"(03N$)[)QC9:&5S:2'/^1#H^#"G_\F`15B3
MUXEVU].%3&=657&<G$>;M?E+Q%F<AND;@-&8?NF$`F@34ADBW[E/\8F;\TF=
M`_H;I`>,NF*!2-.?`0.?`?I`TQE4Y0EONRE"B[6>ZP&;^5DPPOF@XYEKHNEO
M?N,5?1&B,?*?G1.=SW.7#%B=0#<8O;DSK/<5ISB!VQ&C[X&BLJ&B[\*BY(DY
MHU&C(\D]:$BCA%&<"AHO'?J@?KB%:.F6S_:D,^H5A-&:UL-Z,>@B.JJ`/"HX
M$6IYE)8=;&BD@Y&!7(&CDUF73*H1QFD1:"-193H46J@5/K*E0]6EAE.@#X$V
MA#5/2[JF._.E$N9P%F.G1@FH?R>HD4FH%?]CJ#&)J']WEWR#AGA::W\*J7NJ
MIP4A>8E3J)>*J7NJJ#KCJ(,$JOXHJB]#JL=HJAFIJ2NCJH?%J@]XF[9)JXWZ
MJ;(*IIO$D4OHJ0Z:JZ?*;4D&FOL"JW((K#JYJI(BD?FHIL@Z*^D3GCW"JY`Y
MF+_ZK")ACC;8IX?B0TZ9)->*K0724X?37=174<5!5,9Z2>)Z*KPA3[OY@W:B
MK;>1I<H7KNWJ$;47@]?)K0VVF^MAKQF#J_D:?>=J5N;JGC62G"TW@^I*L`6;
M<O]W(P<ZL>SF/]MI?_@:L4+1KPK;(!7:=[BC<CE9@\[*L7IXG0?['_](@0;[
ML?=ZLBC[&Q6ZH:?_%WA]@Z:+([,S&T_=):_0P;#H.96DV;/?T;(KNQH5RYN`
M!K%&JQHU"X!"ZYG@L:[/];3QX;'XM;06.II65:E8*Y8)RUY_9'GGF;1I6K1A
M"[*/YR9SRDDM2WG>Z;1K.QQ:FV\UT9$]@Y\ZRV,;6[>/IK(RDV]QZY@88K5U
M`;:`6QXE6'=,>Z)TN[B\UB$\:2.(*ZV2*UG-X8A*^K>9>R\DY9/!Z;F?"R"*
MJ;=U&KFE.QUT5;)/HKJKZZL\&[NW<[F*2[N78KNX&Z"ZN[NUV;N^2SW`&[RU
M"[O$"S##>[R<D[S*JS?,V[QF@Z)QR*[0N[P_$8DE&HO:N[W<V[W>^[W@_ZN]
M/U&*EWE"5QJ,'N2+Z,L9Y[N^J%BC[IL9[1N_FZ&^'S1_2(2<B"M,X,&YH7:[
MD;F_$H&YR)F_,N&_MP;`\EEI"DR>#*QG!AP3"+PF#1Q;`NQ-_7O!T`G!;`03
M$TQE%2Q8#SRY(UR`,+EE(9Q/??L2TQNT*^P2+?P<,.N115F]-LR=-YS#.KS#
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MF\V;:MC&+!-Q_11I_$;O`]@BB)QS[39];=>'75"835W!M\PMW1]DG;.X5XS/
MU-&?)W[^3!)#=T:K3+6'#4Q-K(VB_:Z@_6RI5+ES%(3/Q-KHY\U5$=INM,RD
M'<4XL8>GK:56YQQ8J#C6C#W]F]:V+!VOO"4:O*?.G=CI5=WH#-W879,$O&E(
M_['<VMC=)0%<X/V`SDW>/IS>ZKW>[-W>[OW>\!W?\CW?]%W?]GW?^)W?^KW?
M_-W?_OW?`![@`C[@!%[@!G[@")[@"K[@#-[@#O[@$`YHX3OA%%[A%G[A&!Z^
M)A;AO'*Y'"XL'O[A';[A(@XK(5[BM7+B*/XJ*K[BJ=+B+FYM)![CG@+CGM7@
M-LX2//G=%^$T^3FI0.MOU<J$'@C06_/$!OG$BI,^G;JI2IRI<T6O$&UU0^IO
MK1VE,'IUPWVPYM5YPQUB53Q;F3+C:@B%F1):TL+7.>$]+/T4`!Q"@VA2J='F
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M.(Q\-!#DRYYGLY-^DX5!A?`++#?1UB<-2&(<TE1G\#=T'`G"'A8-\E(MT?PL
MT'T[>05YZULA891]4$:$EZ+_ON_BO!,=0KG8;-C)/-SO[MF,;49B7-A!VC\W
MT50QKY?U["CQ3D1-:8Q+-QN@MO0&>1/G+O2.R.]_$\C12H25A.YL;4:*'M4*
M..S.>!6:R'L[\_-!G;=`S.,S0>X8^O'*6N?^'M)!7^?171&<&AB`A9YQ*E]<
M[S]/O+EX2/.='<9-S1W`=?*]?!I*ANX[N>YO+_0(/?D>G3$M[[AF;E9Z44N.
MR!1U[^/WQA?=)J9,+/<A/?A=???W4>WHI!>NJY\G]3/%'E3H0]%1L_A,0=9W
MKAW%0>>7;Y'7P?@YW1+%->0$E=OG2%`V7>I'4T&HKHAO9/HB?1KG+$5(<?2[
M3_D8_UW\UFW$8TKDA=%F]QG6B7OTQI@@DUP=B-/FU)_37&WW`*0=V>'4&4KI
MLSGFS&S[/P\0UZQ8N<8*`"N!UU9<NP:@(<.!#"%*++B0H<.'%`L>E!@QHT""
M"B\R7$'0HT6-*56N9-E2(4>-*V"Z5!F29$B;"A%:02BPIT>%."FRLCBS9$R)
M%CUB9$5PA=*'3U.&--@3(\:('@=6W;AS)$VP+`VBW)@S;%**&!,*!!!2K=JU
M*ZR2)9FVHTF;2[]&A-E3XEN(!`%;L?B3:%BX9Q4O/IMXL6.@BV7N1$A4[L;+
M)7DJ+/FTIT&;,N5::4O:;$'"`S>;3KJ5(6C"337[95R[)O\`W+EUXZX]66)3
MSI]QJU;]^NG`RV63`LB,G/9-UQ4)$@4JFBU/YG['UKW.F7!GN9:)ML7<L^1S
MVRQ%[^1M&WA2B\D!?]V(NN-,^_`#@[S[%>OTTIZ;+ZN%0//.*9+H6LFQ]!ID
MC,'&=AO.00HKM#`R"VTC;D/BT,OPP_L4!'%$$A63*;?D:HNNJ:T\^BFK#5EA
ML3+5_%JQQAA1XXG#&?.CJ#@<-VOJ/9]0VVDSER`L,4,EEW3R2<8PA')**L':
MKDHLEXPN2RZ[?,Q+!YL$<\P,Q2/SS">'1'---MMTTZXW:1(S3CKKM/-.///4
M$\PYX^QS3T`#%7100@M%\T\W$35O=%%&&W7T44<595-22"NU]%),,X62TD,U
M]?134$,5]4M!.1WU5%135=7/04U=]5588Y451%?'K'567'/5=5?Z`+V55V"#
L%=;37[N4\%ADDU5V66:;=?99:*.5=EIJJ[7V6FRSU79;;KOU]EMPFPT(`#L_
`
end

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
