Southwest Airlines Declares 3-For-2 Stock Split and Increases Dividend

Southwest Airlines' Board of Directors, at its meeting held May 20, declared a 3-for-2 stock split of the Company's common stock and also increased the quarterly dividend.

The 3-for-2 stock split will be distributed on July 19, 1999 to Shareholders of record at the close of business on June 30, 1999. This stock split will result in a 50 percent increase in the number of common shares outstanding as of the record date, with cash being paid in lieu of fractional shares. As of May 18, 1999, before the effects of this stock split, there were 335,938,112 shares outstanding.

Herbert D. Kelleher, Chairman, President, and Chief Executive Officer, stated: "Southwest Airlines is the success it is today because of the devoted efforts of our Employees and the loyal support of our Shareholders. In recognition of our gratitude to our Employee-Shareholders and Nonemployee Shareholders, our Board of Directors has just approved a 3-for-2 stock split to be distributed on July 19, 1999 to Shareholders of record as of the close of business on June 30, 1999. The Board of Directors also increased our regular dividend 10 percent by declaring a quarterly dividend of $.00825 per share payable to Shareholders of record at the close of business on June 4, 1999. This 91st consecutive dividend will be paid on June 29, 1999. After the 3-for-2 split on July 19,1999, the regular dividend will be adjusted to $.0055 per share quarterly on the increased number of shares outstanding."

This press release, as well as past releases, can be accessed on the Southwest Airlines internet site at: http://www.southwest.com