Mesaba Negotiations update:  June 27, 2006

Court was back in session this morning at 9am. The entire session was "open". The morning began with the cross examination of ALPA's attorney Jane Schraft. Suring
the cross, an exchange was made between the Judge and the union attorneys about continuing to work toward consensual deals.

ALPA's second witness was Jerry Bremer who testified about generally accepted accounting practices as it relates to Mesaba's operating margin and explained how a
pass through cost can appear to decrease the margin.

Mesaba called Pete Walsch of the Mercer group to rebut the testimony of Mr. Bremer.

The AFA then called financial expert Dan Akins. Mr. Akins is testifying on behalf of all three unions about errors in Mesaba's models and has identified a few things that
can, if corrected, reduce the supposed need of 19.4% to 8.1%.

Day three of the hearing will begin at 9am on Wednesday where the direct testimony of Dan Akins will continue.

Nate