Mercury Air Group Agrees to $71,500,000 Financing for Acquisition and Refinancing Purposes

Business Wire, Sept 26, 2001

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 26, 2001

Mercury Air Group, Inc.(AMEX/PCX:MAX) announced today that it has agreed to financing of $71,500,000 through the issuance of convertible subordinated debentures.

The convertible subordinated debentures to be purchased by a European investment firm, in the nominal principal amount of $110,000,000 will be due on September 30, 2021, and will bear interest at the rate of 7% per annum on the nominal principal amount. Interest will be payable quarterly. The debentures will be convertible into Mercury Air Group's common stock, subsequent to September 30, 2004, at $21.50 per share.

The funding of proceeds is expected to occur at different intervals, beginning on September 28, 2001. Mercury intends to use the proceeds from the sale of the debentures to repay its subordinated indebtedness, to restructure its senior indebtedness, and for possible acquisitions.

"Mercury is extremely pleased with the financing and its recognition of the inherent value of our stock." said Joseph A. Czyzyk, President & CEO of Mercury Air Group, adding, "These funds will enable Mercury to continue our core business focus with the ability to fund significant acquisitions to enhance results and fuel our future growth."

Mercury Air Group, Inc. provides aviation fuels, air cargo services, logistics, manpower, equipment and support services for international and domestic airlines, business aviation and for the U.S. Government worldwide. www.mercuryairgroup.com.

Statements contained in this news release, which are not historical facts, are forward looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the Securities and Exchange Commission.