In Classic Arcade mode, press jab to select a character. Then, as the airplane flies to the top of the screen press the corresponding sequences of buttons and press jab again to unlock the following Classic characters:
CLASSIC CHARACTER - HOW TO UNLOCK Balrog - RIGHT, LEFT, LEFT, RIGHT. Blanka - LEFT, RIGHT, RIGHT, RIGHT. Cammy - UP, UP, DOWN, DOWN. Chun-Li - DOWN, DOWN, DOWN, UP. Dee Jay - DOWN, DOWN, UP, UP. Dhalsim - DOWN, UP, UP, UP. E. Honda - UP, UP, UP, DOWN. Fei Long - LEFT, LEFT, RIGHT, RIGHT. Guile - UP, DOWN, DOWN, DOWN. Ken - LEFT, LEFT, LEFT, RIGHT. M. Bison - DOWN, UP, UP, DOWN. Ryu - RIGHT, RIGHT, RIGHT, LEFT. Sagat - UP, DOWN, DOWN, DOWN. T. Hawk - RIGHT, RIGHT, LEFT, LEFT. Vega - LEFT, RIGHT, RIGHT, LEFT. Zangief - LEFT, RIGHT, RIGHT, RIGHT.