Alpine Air Express Awarded a New Contract with UPS

Alpine Air Express Inc. (OTCBB: APNX) announced that its operating subsidiary Alpine Air, a leading provider of regional air cargo transport and logistics services, has been awarded a new contract by the United Parcel Service (UPS) to commence operation on July 17, 2005, servicing routes from Seattle to Kennewick and Walla Walla, Wash.

According to the company, the contract is part of its plan to diversify its client base, better use its aircraft assets and expand its routes to areas that are geographically compatible with the company’s future operations. Additionally, the company expects the contract to contribute significantly toward its continued profitability.

Gene Mallette, CEO of Alpine Air, commented, “We are pleased to announce this new contract which further diversifies our client base. UPS is a wonderful company and we look forward to providing many years of service to UPS and its clients. While the contract accounts for approximately 7% of our gross revenue, it will have a positive impact on our continued profitability. Our business model and regional infrastructure has us perfectly positioned to provide the best service at a very competitive rate.”

Mallette further added, “Although our entire management and flight operations team were an integral part of our ability to secure the new contract, we are particularly thankful to the efforts of our general manager, Mr. Bill Distefano. His tireless efforts were critical from the original contract bid to negotiating the final operational logistics.”

Founded in 1975, Alpine Air, a wholly owned subsidiary of Alpine Air Express Inc., provides competitively priced scheduled air cargo flights throughout the western and southwestern United States. The company has an established client base that includes various contract operations, freight forwarders, and other cargo and logistics firms. Alpine Air provides superior “on time” performance and reliability, together with the flexibility to adapt quickly to the growing frequency and capacity requirements of its clients.

This press release may contain forward-looking statements including the company’s beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, the successful completion of the proposed leasing transaction, changes in anticipated earnings of the company and other factors detailed in the company’s filings with the SEC. In addition, the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The company does not undertake to update them; however, it may choose from time to time to update them and if it should do so, it will disseminate the updates to the investing public.