Alpine Air Express Posts Its Third Quarter 10QSB for FY 2005

-Alpine Aviation Inc., a subsidiary of Alpine Air
Express Inc. (OTCBB: ALPE), and the third largest, by volume, regional
cargo airline and transportation logistics company in the United
States, with a fleet of 26 airplanes, along with its sister company,
Alpine Air Chile, S.A., for the three months ending July 31, 2005,
posted revenues of $5,369,327. This represents an increase in total
revenue of approximately 8% over revenues of $4,965,758 during the
same period in 2004. During the quarter ended July 31, 2005, the
company had a net loss of $809,480, which includes a one-time
write-down of aircraft and other assets and the forfeiture of certain
deposits. For further information, please see Alpine Aviation's third
quarter 10QSB available at the company's Web site,
www.alpine-air.com/investors.htm/.
   The company receives the majority of its revenues from contracts
with the U.S. Postal Service (USPS). For the three months ended July
31, 2005 and 2004, the revenues from contracts with the USPS
represented 100% and 81% of total revenues, respectively. At July 31,
2005 and Oct. 31, 2004, accounts receivable from the USPS totaled
$1,724,114 and $1,046,321, or 95% and 43%, respectively. The contracts
currently in effect with USPS will expire between August and November
2006 for mainland U.S. operations and as early as Oct. 7, 2005, for
Hawaii for certain routes and the remainder may be under new contracts
for an additional three years. Since April 2004, the company has
operated a new USPS contract to provide delivery of the mail between
the Hawaiian Islands. This obligation placed more demand on company
resources, including the increase in fuel costs, which has hindered
the company's desire to expand its delivery services for additional
routes in the mainland United States. As a result, on Jan. 31, 2005,
the company notified the USPS of its intention to discontinue or
terminate its service to the Hawaiian Islands under the terms of the
current AMOT contract. The contract obligation to provide service may
cease as early as Oct. 7, 2005. The company believes it has mitigated
the recent losses through management plans, which have included
re-bidding the USPS contract in Hawaii, the recovery of aircraft
previously leased which can now be redeployed to reduce the company's
costs of chartering aircraft to cover delivery routes in the mainland
United States, the reduction of any further significant investment
into Alpine Air Chile, and the company has entered into agreements to
postpone the payments on the related party notes payable and the
dividends on preferred stock.
   Gene Mallette, CEO of Alpine Air, commented: "We are excited to
finally have the opportunity to return to profitability this quarter,
given the potential of receiving notification of the Hawaiian contract
award from the U.S. Postal Service."
   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 and the U.S. Postal Service. Alpine Air provides
substantial "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,
realization of USPS projected volumes, 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.