US Airways Group announces exercise of over-allotment option

US Airways Group reported that the underwriter of its public offering of 19,000,000 shares of common stock has exercised in full the over-allotment option granted to it by the Company. As a result, the Company will sell an additional 2,850,000 shares of its common stock at the offering price of $8.50 per share. Including the exercise of the over-allotment option, the net proceeds from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $179 million.

As previously announced, the Company plans to use the net proceeds for general corporate purposes. Completion of the offering is subject to customary closing conditions and is expected to close on August 19, 2008. Merrill Lynch & Co. acted as the sole book-running manager for the offering.

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