EXHIBIT 99.1


                                                            Contact: Jad Mansour
                                                                  (415) 765-1814


         AIRLEASE LTD. ANNOUNCES SPECIAL CASH DISTRIBUTION IN CONNECTION
                                WITH DISSOLUTION


         SAN  FRANCISCO,   July  12  --  Airlease  Ltd.,  A  California  Limited
Partnership,  (OTCBB -AIRL),  announced today that the Board of Directors of its
General Partner has approved, in connection with the dissolution, winding up and
liquidation of Airlease,  a special cash  distribution of 88 cents per unit. The
special cash  distribution  will be payable  August 6, 2004, to  unitholders  of
record on July 22, 2004.

         Airlease,  which sold its remaining  aircraft in May 2004, has now been
dissolved and has ceased  conducting  business.  The General Partner of Airlease
currently  is  winding up the  affairs  of  Airlease  and  expects to  terminate
Airlease at or before the end of 2004.

         The  Board  of  Directors  of  the  General   Partner   approved   this
distribution after concluding that the remaining assets of Airlease,  consisting
only of cash  and  cash  equivalents,  are  reasonably  likely  to  satisfy  all
creditors and  liabilities of Airlease  through  termination  of Airlease.  This
distribution  represents  a majority of the net  available  funds as of June 30,
2004. The 88 cents per unit distribution equates to approximately  $4,111,000 to
be distributed pro rata to all unitholders, including the General Partner.

         The Board of Directors  of the General  Partner  currently  anticipates
making  a final  cash  distribution  to  Unitholders  out of its  remaining  net
available funds in conjunction with the termination of Airlease at or before the
end of 2004. After accounting for the 88 cents per unit  distribution,  Airlease
will have approximately $841,000 in cash and cash equivalents remaining on hand,
part of which will be used to pay the Partnership's  expenses and liabilities in
connection with winding up, liquidating and terminating Airlease, which expenses
the General Partner currently estimates to be between $400,000 and $500,000.

SAFE HARBOR  STATEMENT  UNDER THE PRIVATE  SECURITIES  LITIGATION  REFORM ACT OF
1995:

         Airlease,   Ltd.   has   included   in  this  press   release   certain
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995 concerning the business,  operations and financial
condition  of  Airlease.  The words or  phrases  "can be",  "may  affect",  "may
depend",  "expect",  "believe",  "anticipate",   "intend",  "will",  "estimate",
"project"   and  similar  words  and  phrases  are  intended  to  identify  such
forward-looking  statements.  Such  forward-looking  statements  are  subject to
various known and unknown risks and uncertainties and Airlease cautions you that
any  forward-looking  information  provided by or on behalf of Airlease is not a
guarantee of future  performance.  Actual results could differ  materially  from
those anticipated in such forward-looking statements due to a number of factors,
some of which are beyond Airlease's  control,  in addition to those discussed in
Airlease's  filings with the Securities and Exchange  Commission,  including (i)
changes in interest  rates;  (ii) the costs of satisfying  and providing for the
Partnership's  liabilities;  and (iii) the costs of winding up,  liquidating and
dissolving the Partnership. All such forward-looking statements are current only
as of the date on which such  statements  were made.  The  Partnership  does not
undertake any  obligation to publicly  update any  forward-looking  statement to
reflect  events or  circumstances  after the date on which any such statement is
made or to reflect the occurrence of unanticipated events.

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7/12/04