MAYOR JIM HAHN ANNOUNCES $225-MILLION UPGRADE OF TOM BRADLEY INTERNATIONAL TERMINAL AT LAX

Largest construction project at airport since 1984 Olympics; Renovation will improve operational efficiency and enhance customer satisfaction at major U.S. air gateway LAX TBIT Interior Improvements Information Sheet LAX TBIT Renovation Questions and Answers LAX Improvements Timeline

(Los Angeles, California - December 8, 2003) Los Angeles Mayor Jim Hahn today announced a $225-million project to renovate the interior of the Tom Bradley International Terminal (TBIT) at Los Angeles International Airport (LAX) for improved operational efficiency and enhanced customer satisfaction. Nearly 40 percent of the estimated cost is allocated to security and safety upgrades. The terminal overhaul will be the most extensive capital improvement project undertaken by Los Angeles World Airports (LAWA) since the 1984 Summer Olympics.

"Los Angeles International Airport is a global gateway for millions of travelers every year, which is why we are determined to ensure that LAX maintains the highest levels of safety, security and efficiency in the years ahead," said Mayor Hahn. "We must make the necessary investments to ensure that LAX maintains its prominence as an international hub and a major economic engine for our region."

The $225-million project will be financed with a combination of airport revenues, Passenger Facility Charges (PFCs), and LAWA's commercial paper program. The U.S. Transportation Security Administration is expected to reimburse LAWA for up to 90 percent of the cost of installing the outbound baggage security screening system. At an estimated cost of $72 million, the screening system complies with a federal mandate to screen 100 percent of all checked luggage and will replace an interim solution in place since December 31, 2002, that has resulted in increased passenger congestion and circulation challenges.

"Since Tom Bradley International Terminal opened in 1984, it has welcomed millions of passengers to Los Angeles from all over the world," said Los Angeles City Councilmember Cindy Miscikowski (11th District). "But over the years, wear and tear has begun to show and it is time to remake the terminal in the image of Los Angeles as the Gateway to the Pacific Rim and the world."

"Preserving and enhancing international gateway service at LAX is a critical component of the regional air transportation solution for Southern California envisioned and promoted by Mayor Hahn," said Los Angeles Board of Airport Commissioners President Ted Stein. "Even as we look to the other airports in the region to do their part to meet the growing demand for air service, we recognize the unique role of international service at LAX."

Other major elements of the TBIT renovation project on both the Upper/Departures and Lower/Arrivals Levels include:

• "Dynamic overhead signage and plasma displays for flight information and other public communication;
• "Improved acoustics and lighting of all public areas, including new back-lit walls and more exterior windows for natural light;
• "New canopy over ticketing counters and back walls;
• "New terrazzo and carpet flooring;
• "Improved ramps and stairs for easier passenger access to bus-gate holdrooms and exits from federal inspection areas;
• "New food/beverage and retail concessions with outdoor seating, a children's play area, and a second-level walkway connecting the mezzanine seating area to new concessions;
• "More "intimate" and relaxing in-transit waiting lounges;
• "Replacing existing airline clubs with new combined airline lounges;
• "Faster-throughput baggage claim carousels;
• "Upgrading all elevators, escalators and moving walkways.

The Los Angeles Board of Airport Commissioners is expected to consider authorization to request proposals for construction management in the near future and will begin soliciting construction bids in May 2004.

Thirty-two international air carriers currently operate at TBIT, serving more than nine million passengers annually. LAX serves almost one-third of all air travelers between the United States and Asia-Pacific, the fast growing international market in the world.