Eos Airlines Files for Chapter 11

Planned Investment does not Close; Premium Class New York-London
Carrier Forced to Wind Down Operations
PURCHASE, N.Y.--(Business Wire)--
Eos Airlines, the premium class New York to London carrier, which
has become known for its operational excellence and uncrowded Guest
experience, announced today that it has filed a voluntary petition
under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed
April 26, 2008 in the U.S. Bankruptcy Court in the Southern District
of New York.

On April 26, 2008, Eos plans to operate Flight 6 (8:30pm) from JFK
to STN. On April 27, 2008, Eos plans to operate Flights 3 (1:00pm) and
7 (6:30pm) from STN to JFK. Flight 5 from STN to JFK and all flights
from JFK to STN on April 27, 2008 are canceled. Eos will immediately
implement a reduction in its workforce, eliminating the positions of
most of its employees, and will cease operations entirely after April
27, 2008.

Jack Williams, Eos' CEO, said: "After overcoming today's extremely
challenging economic and credit environment to negotiate terms for a
round of financing, it is regrettable that we were forced to take this
action. We had been clear since closing on our last round of financing
that we would need additional capital. As difficult as it is to raise
funds in the current environment, investors believe in our business
model and we were on the verge of success.

"Unfortunately, just as we were working toward closing on an
investment that would have carried us to corporate profitability in
2009, some issues arose that we could not overcome. It is regrettable
that, even though investors continue to be enthusiastic about our
business model, and even though we had a term sheet in hand, we were
unable to close on the financing we needed. That leaves us with
insufficient cash on hand to continue operations.

"There are times in business when even though you execute your
business plan and even though your employees do their jobs
beautifully, external forces prevent you from controlling your own
destiny.

"I want to express my appreciation to our dedicated employees and
to the many Guests who have become like family to us."

Guests and suppliers who need more information should visit
www.eosclass.com.

Court filings and claims information will be available at
kccllc.net/eosairlines.

Linden Alschuler & Kaplan, Inc.
Steven Alschuler, 917-647-2151
salschuler@lakpr.com

Copyright Business Wire 2008