835768--6/27/2006--MAIR_HOLDINGS

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If Holdings is unable to find an alternate sublessee for Mesaba s Cincinnati/Northern Kentucky Airport facility, Holdings may be required to accrue an additional $8.2 million of expense related to the bonds associated with the initial financing of the facility. If, in the process of performing its duties, Mesaba s Creditors Committee believes any claims exist regarding Mesaba s relationship with Holdings, the Creditors Committee could assert such claims against Holdings. Mesaba is dependent on its relationship with Northwest as its major customer, and the loss of this relationship would substantially harm the Company s financial results. Because Mesaba is unable to pass along increased operating costs, Mesaba s earnings will be negatively affected as its fleet continues to age. Holdings ability to diversify within the airline industry may be limited by the terms of its side letter agreement with Mesaba s pilots union. Mesaba and Big Sky are increasingly dependent upon technology in their operations, and any failure of such technology could adversely affect them. Any future exercise of the Warrant held by Northwest could substantially dilute the Company s common stock.

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835768--6/27/2006--MAIR_HOLDINGS_INC