----- Original Message -----
From: <Peter.Outerbridge@usdoj.gov>
To: Audrey Ulozas <juaud@ptd.net>
Sent: Wednesday, May 07, 2003 4:21 PM
Subject: From Peter Outerbridge at Dept. of Justice

Audrey:

We have been attempting to contact you concerning a matter currently
before Judge Lenard re: Arrow Air (the company that bought Fine Air two
years ago). The Probation Department and the Independent Auditor have
reported that Arrow has done an exemplary job of "removing the negative
corporate culture" practiced by Fine, and has developed an airline that has
received positive reports from the FAA, the auditor and probation concerning
its safety procedures. We are confident that all remaining vestiges of
Frank and Barry Fine have been eliminated from the company, since Arrow
elected not to keep any of the old management. Therefore, we are all in
agreement that this is a new airline altogether. Arrow is asking Judge
Lendard for more time to pay the portion of the fine payment that was
inherited from Fine before the Fines took Fine Air into bankruptcy. You
might remember that the government refused to waive the remaining portion of
the fine payment that was due (or would be due in the future). This action
was taken even though Arrow was a different entity. In addition, Arrow was
required to serve out the balance of Fine's probation. In light of recent
problems affecting the aviation industry, along with consideration of
Arrow's positive changes and record as a probationer, we are contemplating
waiving the last $750,000.00 installment payment (Arrow has already paid
$750,000.00 and another $750,000.00 will be paid during the June 2003 - June
2005 probation period. In exchange, however, we are requiring Arrow to
serve another year of probation (extending the period to June 2005 from the
present termination date of June 2004). Before appearing before the judge,
I would like to report back everyone's view on this. You and Penny Thompson
are the only ones that I have not been able to get in contact with. Please
e-mail me and let me know when I may call you to discuss (I don't want you
to have to pay for a long distance call). Otherwise, please enclose your
thoughts in an e-mail. Take Care. Peter Outerbridge.