Pan Am Flight 103 - Settlement of Lawsuit Against Libya

We have received the following Press Release. After reading the release you might want to go to the Pan Am Liquidation Trust's website at www.panamliquidationtrust.com. and download the actual Notice of Distribution If you believe that you might hold an Allowed Administrative Claim, it is important that you follow the instructions contained in both the Press Release below and the Notice of Distribution.

We are passing along this information as a courtesy to former Pan Am employees. This website has no further information on this matter. All inquiries must be directed to the parties named in the Press Release and/or the Notice of Distribution.

PRESS RELEASE:

Pan Am Creditors to Receive Approximately $30 Million in Proceeds from Settlement of Flight 103 Lawsuit Against Libya

NEW YORK, August 16, 2006 – Pan Am World Airways, the pioneer U.S. flag carrier,
announced today that a final distribution will be made by the end of the year to Pan Am’s
administrative creditors, including more than 15,000 former employees. Pan Am said that the
additional distribution of approximately $30 million will be made possible by proceeds from a
law suit settlement with the Government of Libya stemming from the destruction of the airline’s
Flight 103 over Lockerbie, Scotland on December 21, 1988.

Pan Am originally filed for bankruptcy relief on January 8, 1991. The airline ceased
operations on December 4, 1991. Among the reasons leading to Pan Am’s demise was a severe
decline in international air traffic in the aftermath of the Libyans’ terrorist bombing of
Flight 103.

After the bombing of its aircraft, Pan Am sought to recover damages from the Libyan
Government, Libya’s national airline and two Libyan agents. The civil action was stayed while
Scottish authorities pursued criminal charges against the two individuals.

In 2004, the conviction of one of the individual defendants by a Scottish Court sitting in
The Hague became final. Following that conviction, the civil suit was able to proceed. The
pressure of that action, coupled with Libya’s shift in geo-economic strategies, enabled Pan Am to
negotiate a settlement with the Libyan authorities. That settlement provided the funds for this
final distribution.

The distribution will be made to all eligible administrative creditors, including former
employees, pursuant to procedures approved by the Bankruptcy Court in New York on July 6,
2006. Distribution checks are expected to be mailed beginning in December 2006.

Pursuant to the approved distribution procedures, Pan Am has mailed a notice of the distribution to all holders of outstanding Allowed Administrative Claims at their last known addresses.

Persons who believe they hold an Allowed Administrative Claim but who do not receive
a mailed notice or who receive a mailed notice as a result of it being forwarded to them at an
address different from that to which it was addressed must contact Wells Fargo Bank, N.A.,
Pan Am’s distribution agent, as soon as possible, and in any event no later than November 1,
2006, in order to update their contact information. Pursuant to the court-approved procedures for the final distribution, Administrative Creditors who cannot be located may forfeit their right to participate in the final distribution.

Creditors with questions about individual claims or the final distribution, or who wish to
update their contact information, should call Wells Fargo’s toll-free service and information line
(877-813-3539) between the hours of 9:00 a.m. and 5:00 p.m., Eastern Standard Time, Monday
through Friday, send an email to panamliquidationtrust@trumbullgroup.com or write to Pan Am
Liquidation Trust c/o Wells Fargo Bank, N.A., P.O. Box 2370, Minneapolis, MN 55402-0370.

The final distribution is being made pursuant to an order of the Bankruptcy Court dated
February 15, 1996 which, among other things, established the Pan Am Liquidation Trust,
transferred substantially all of the remaining assets of Pan Am to the Liquidation Trust, and
authorized the distribution to each holder of an Allowed Administrative Claim of an amount
equal to its pro rata share of the anticipated net recovery from the litigation pertaining to the loss of Pan Am Flight 103.

Previous distributions to Administrative Creditors have totaled approximately 23% of
their respective claims. It is anticipated that the final distribution will equal not less 5% of the
remaining outstanding Administrative Claims. Any unclaimed or otherwise undistributed funds
will be turned over to the Pan Am Retirees’ Supplemental Medical Plan.