AMR announces Put Option notification for 4.25% Senior Convertible Notes

AMR Corporation is notifying holders of the $225,490,000 outstanding principal amount of its 4.25% Senior Convertible Notes due 2023 that they have an option, pursuant to the terms of the Notes, to require AMR to purchase, on Sept. 23, 2008, all or a portion of such holders' Notes (the “Put Option”) at a price equal to $1,000 per $1,000 principal amount of the Notes, plus any accrued and unpaid interest to Sept. 23, 2008. As Sept. 23, 2008 is an interest payment date for the Notes, interest accrued up to the purchase date will be paid to record holders as of the regular record date immediately preceding this interest payment date, and therefore AMR expects that there will be no accrued and unpaid interest due as part of the purchase price. Under the terms of the Notes, AMR has the option to pay the purchase price for the Notes with cash, stock, or a combination of cash and stock, and has elected to pay for the Notes solely with cash.