Lufthansa announces that noteholders representing 99.99% of its €234.4 million exchangeable notes have accepted its incentivized payment offer for the notes during the early participation period

Deutsche Lufthansa AG (“Lufthansa”) announces that holders of approximately €234.38 million aggregate principal amount (representing approximately 99.99%) of the €234.4 million 0.75% exchangeable senior notes due 2017 (the “Notes”) issued by Lufthansa Malta Blues LP (the “Issuer“) and guaranteed by Lufthansa, validly accepted the voluntary incentive payment offer (the “Offer”) to exchange their Notes into shares of common stock (the “Shares”) of JetBlue Airways Corporation (“JetBlue”) during the early participation period, which expired at 5:00 p.m., New York City time, on March 3, 2015 (the “Early Participation Deadline”), in accordance with the terms and subject to the conditions set forth in the Incentive Payment Offer Document dated February 18, 2015 (the “Incentive Payment Offer Document”).

Those noteholders who have validly accepted the Offer prior to or at the Early Participation Deadline will receive the Early Participation Consideration, equal to 2.50% of the principal amount of Notes exchanged.

Noteholders who validly accept the Offer after the Early Participation Deadline but prior to the expiration of the offer on March 17, 2015 at 11:59 p.m., New York City time (the “Expiration Deadline”) will be eligible to receive the Incentive Offer Consideration only, equal to 1.75% of the principal amount of Notes exchanged. No accrued interest will be paid, and no further payments will be made in respect of Notes exchanged in connection with the Offer.

Noteholders may withdraw their acceptances at any time prior to the Expiration Deadline (11:59 p.m., New York City time on March 17, 2015). Subject to the requirements of applicable law, the expiration time of the Offer and the deadlines for accepting and withdrawing may be extended by Lufthansa in its discretion.

The payment of the Early Participation Consideration or the Incentive Offer Consideration, as the case may be, and the delivery of the Shares are expected to take place on March 26, 2015.

If following the Offer, 90% or more of the Notes originally issued have been exchanged, Lufthansa will have the right to redeem the Notes that remain outstanding at their principal amount together with accrued interest, pursuant to the Indenture governing the Notes.