LOS ANGELES WORLD AIRPORTS LAUNCHES LOW-INTEREST, $150-MILLION COMMERCIAL PAPER FINANCING PROGRAM

First Post-Sept. 11 Program Reflects Investment Community's Positive Outlook for City's Airports

(Los Angeles, California -- May 3, 2002) Los Angeles World Airports (LAWA) has launched a $150-million commercial paper financing program and said it intends to make an initial draw of $10 million within one week to pay for reconstruction of an aircraft taxiway at Los Angeles International Airport (LAX). This is the first commercial paper program in the city agency's 74-year history.

Karen Sisson, LAWA's chief financial officer, said the commercial paper program will provide the ability and flexibility to meet LAWA's short-term borrowing needs for capital improvement projects at LAX, Palmdale Regional and Van Nuys Airports. Future draws under the $150-million program are expected to help finance near-term, facility-related security enhancements at LAX, as well as other components of the city agency's capital improvement program.

"The implementation of this commercial paper program is key to maintaining LAWA's financial flexibility in the post 9-11environment," said Sisson. "As a 'just-in-time' financing tool, it enhances our ability to manage cash flow and the timing of long-term borrowing." She added that while several major airports have commercial paper financing programs, LAWA is the first airport authority to receive the financial investment community's support for its program after Sept. 11 -- a reflection of LAWA's prospects for recovery and sustained future growth.

Bayerische Landesbank Girozentrale is the agent bank. Other participating banks are JP Morgan Chase, Landesbank Baden-Wurttemburg and Westdeutsche Landesbank Girozentrale.

Initial dealers are Goldman Sachs and Bear Sterns. Financial advisors are Public Resources Advisory Group of Los Angeles and Frasca & Associates of New York.

The interest rate will be set on the day of issue and is expected to be in the range of 1.50 to 1.60 percent.

LAWA was given authority to implement a commercial paper financing program by the Los Angeles Board of Airport Commissioners and the Los Angeles City Council.