HONOLULU - Hawaiian Airlines Trustee Joshua Gotbaum announced that former Hawaiian Airlines CEO John Adams and Adams-affiliated companies AIP LLC and Smith Management LLC have agreed to pay the airline $3.6 million to settle a lawsuit brought by Gotbaum last year over funds diverted from the airline.

�This should close a sorry chapter in Hawaiian's history,� said Gotbaum. �Part of my mandate was to investigate Smith and Adam's activities prior to the company's bankruptcy. Once it became clear that funds had been improperly diverted, we took action. We're pleased to be recovering a significant amount. The funds will help complete our successful reorganization of Hawaiian.�Gotbaum filed suit in November 2003 seeking to recover funds paid to Adams and other shareholders and insiders. Under the agreement, Adams and the affiliated companies will pay $3.6 million to Hawaiian Airlines once the Bankruptcy Court approves and Hawaiian successfully exits bankruptcy. In an earlier separate settlement with the US Securities & Exchange Commission, Adams and the affiliated companies agreed to pay $2.5 million, which funds will be used to compensate shareholders who were disadvantaged by the tender offer.

About Hawaiian AirlinesHawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Readers of two prominent national travel magazines, Cond� Nast Traveler and Travel + Leisure, have rated Hawaiian as the top domestic airline serving Hawaii in their most recent rankings, and the fifth best domestic airline overall. Celebrating its 75th year of continuous service, Hawaiian is Hawaii's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Australia, American Samoa and Tahiti. Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA). Since the appointment of a bankruptcy trustee in May 2003, Hawaiian Holdings has had no responsibility for the management of Hawaiian Airlines and has had limited access to information concerning the airline. Additional information is available at www.HawaiianAirlines.com.

Press Contact: Yvette Macklar ymacklar@mcneillwilson.com