KHK Kitty Hawk

Kitty Hawk, Inc. (AMEX:KHK) announced today that it has entered into a new $20 million revolving line of credit with PNC Bank. The new credit facility immediately expands the Company's credit facility capacity to $20 million from $15 million under the Company's former line of credit and provides for additional expansion in the future. Similar to the Company's former line of credit, borrowings under the new credit facility are subject to a borrowing base calculation. The Company plans to use funds from the credit facility to fund working capital and continue to build Kitty Hawk's coast-to-coast expedited ground freight transportation network. "This agreement represents a major milestone for Kitty Hawk," said Robert W. Zoller, President and CEO. "PNC is a very well regarded financial institution with significant experience in our industry. Their commitment to Kitty Hawk illustrates their confidence in our financial condition, progress, and strategic initiatives as well as the Company's long-term potential as the only independent air and ground freight transportation network in North America. Through the new credit facility, PNC is providing Kitty Hawk increased flexibility that will allow us to speed integration of our recently closed Asset Purchase Agreement with Air Container Transport, Inc. (ACT). The new credit facility creates a platform for other operational initiatives that will compliment our ground and air businesses and we believe the addition of this new facility, combined with our existing cash, provides us with the financial resources required to complete investment in our expedited ground freight transportation network, as well as achieve profitability." About Kitty Hawk, Inc. www.kittyhawkcompanies.com As a recognized leader in customer service, Kitty Hawk is the premier provider of guaranteed, mission-critical, scheduled overnight air and expedited airport-to-airport ground freight transportation to major business centers, international gateways and surrounding communities throughout North America, including, Alaska, Hawaii, Vancouver and Toronto, Canada, and San Juan, Puerto Rico. With more than 30 years experience in the aviation and air freight industries and our recent purchase of the majority of the assets of Air Container Transport, Kitty Hawk plays a key connecting role in the global supply chain. Kitty Hawk serves the logistics needs of more than 700 freight forwarders, integrated carriers, logistics companies and major airlines with its extensive integrated air and ground network, fleet of Boeing 737-300SF and 727-200 cargo aircraft, six regional air and ground hubs including a 239,000 square-foot cargo warehouse, US Customs clearance and sort facility at its Fort Wayne, Indiana hub. In 2005, Kitty Hawk became the North American launch customer for the fuel-efficient and environmentally-friendly Boeing 737-300SF aircraft. In late 2005, Kitty Hawk launched a coast-to-coast expedited ground network, including six regional hubs, serving major business centers, international freight gateways and surrounding communities throughout North America. In June, 2006, Kitty Hawk, Inc.'s operating subsidiary, Kitty Hawk Ground, Inc., acquired the majority of the assets of Air Container Transport, the premier airport-to-airport expedited freight network on the West Coast. Kitty Hawk's air and ground cargo networks, award-winning, guaranteed overnight time-definite air service and dedicated coast-to-coast ground operation are ideal for mission-critical, heavy-weight shipments (over 150 lbs) or special goods with unique dimensions, high security, high value, perishable, animal and other important shipments. Statement under the Private Securities Litigation Reform Act: This report may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future financial and operating performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "expect," "intends," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause actual results to differ from expectations are: economic conditions; the impact of high fuel prices; our inability to successfully implement and operate our expanded ground network; our failure to close the acquisition of the operating assets of Air Container Transport; our inability to successfully operate and integrate the Air Container Transport operations; failure of key suppliers and vendors to perform; our inability to attract sufficient customers at economical prices for our expanded ground network; unforeseen increases in liquidity and working capital requirements related to our expanded ground network; potential competitive responses from other operators of coast-to-coast less than truckload networks; the continued impact of terrorist attacks, global instability and potential U.S. military involvement; the Company's significant lease obligations and indebtedness; the competitive environment and other trends in the Company's industry; changes in laws and regulations; changes in the Company's operating costs including fuel; changes in the Company's business plans; interest rates and the availability of financing; liability and other claims asserted against the Company; labor disputes; the Company's ability to attract and retain qualified personnel; inflation; and costs. For a discussion of these and other risk factors, see Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2005. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. The Company operates in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the Company's business or events described in any forward-looking statements. The Company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results.