RENO, Nev., Oct. 9 /PRNewswire/ -_ Reno Air, Inc. (Nasdaq: RENO)
(PSE: RNO), today announced that it has completed a private placement of
$35 million liquidation preference of Series A Cumulative Convertible
Exchangeable Preferred Stock.  The sale resulted in net cash proceeds to Reno
Air of approximately $33.3 million.  The preferred stock will accrue dividends
at an annual rate of 9% and is convertible into shares of Reno Air's common
stock at a price of $8.625 per share, subject to adjustment.
    The net proceeds from the offering will increase Reno Air's working
capital and may be used for capital acquisitions, including acquisitions of
aircraft, spare aircraft engines and enhanced data processing and analysis
systems.  Pending such uses, the net proceeds will be invested in short-term,
interest bearing, investment-grade instruments.
    "We are pleased to have substantially increased our liquidity with this
offering," said Reno Air President and CEO Robert Reding.  "It provides us the
cash we need to continue development of our infrastructure to support
long-term growth."
    The sale of the preferred stock was arranged by SBC Warburg Dillon Read
Inc.  The preferred stock has not been registered under the Securities Act of
1933 and may not be offered or sold in the Untied States absent registration
or an applicable exemption from registration requirements.
    Reno Air currently serves 24 cities with 208 peak daily scheduled
departures.  The carrier's fleet of 30 McDonnell Douglas MD-80 and MD-90
series jets has an average age of less than seven years.  Reno Air offers
everyday low fares, advance seat assignments, domestic and international
frequent flyer programs, a spacious first class cabin, "EZtrip" ticketless
travel and full participation in all major computer reservation systems.

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