Travelocity to Acquire World Choice Travel Assets

PRNewswire-FirstCall FORT WORTH, Texas Oct. 22 :

In a move that will broaden its merchant model hotel distribution
capabilities, Travelocity(R) and its parent company Sabre Holdings today
said they had reached a definitive agreement to acquire the assets of
World Choice Travel (WCT), the U.S.-based hotel room consolidation and
distribution business of MyTravel Group PLC, a global leisure travel
services company based in the United Kingdom.

Travelocity expects to close this transaction in the fourth quarter of
2003, subject to regulatory and other customary approvals. Upon closing of
the transaction, approximately 160 WCT employees with significant
expertise in hotel room distribution will become members of the
Travelocity team.
After closing, the $50 million cash transaction is expected to be slightly
accretive to Sabre Holdings earnings per share on an adjusted basis in
2004 and beyond, and neutral to slightly dilutive in 2004 on a GAAP basis
due to the amortization of certain intangibles. The proposed acquisition
of assets is expected to generate additional tax deductions that will
effectively reduce Sabre Holdings cost of the acquisition by approximately
$13 million, to approximately $37 million. After consideration of the net
present value of this tax savings, the price of the business being
acquired equates to six to eight times estimated 2004 EBITDA.

“By expanding our distribution capabilities, we can offer more customers
more great deals and additional services while helping our partners sell
their products to an even broader set of consumers,” said Travelocity CEO
Sam Gilliland. “Combined with our strong and growing merchant hotel
offering, this new asset puts us on a path to additional growth in hotel
sales. And, this transaction also offers us additional distribution
capabilities for other high-yield products, including our TotalTrip(SM)
dynamic packaging and Last Minute Deals.”

Hotel Distribution Assets
With the proposed acquisition of the WCT assets, Travelocity will increase
its hotel distribution capabilities by approximately 20 percent, giving
the company even more opportunities to market and cross-sell merchant
hotel inventory, and giving consumers more places to find
low-price-guaranteed hotel rooms. During the past 12 months, Travelocity`s
merchant hotel program has grown to more than 8,000 properties, which is
double the goal set for year-end 2003.


With the addition of WCT`s hotel capabilities after closing, Travelocity
would gain the following:

* A network of more than 1,700 independent Web-based affiliates that
operate more than 2,300 Web sites in 42 countries. These entrepreneurs
have strong search engine optimization capabilities and complementary and
effective brands—which would give Travelocity`s hotel offering
additional placement opportunities. * Opportunities to sell more
high-yielding products, including Travelocity`s merchant hotels,
TotalTrip(SM) and Last Minute Deals, through WCT`s affiliates, who would
share in these opportunities. * Redistribution capabilities and
technology, including intuitive hotel reporting tools, that will help
Travelocity as it grows The Travelocity Partner Network(SM), Travelocity`s
private label booking service.
These capabilities would add to Travelocity`s leading technology features,
such as direct hotel connectivity and innovative payment systems for
travel suppliers, and its next generation TotalTrip(SM) shopping engine
that allows consumers to book flights + hotels together and get access to
special rates.
About Travelocity
Travelocity, a Sabre Holdings(TM) company, pioneered the online travel
space and continues to be the most popular travel service on the Web,
giving consumers access to hundreds of airlines, thousands of hotels and
cruise, last-minute and vacations packages, and best-in-class car rental
companies, all backed by 1,000 customer service representatives staffed to
provide 24-hour assistance. With 40 million members, Travelocity is the
seventh largest travel agency in the United States. It has been recognized
worldwide for its leadership in the online travel space, and it operates
or powers Web sites in five languages across four continents. Additional
information about Travelocity can be found at

Sabre Holdings Corporation is a world leader in travel commerce, retailing
travel products and providing distribution and technology solutions for
the travel industry. More information about Sabre Holdings is available at

Statements in this release which are not purely historical facts,
including statements about future plans, events, forecasted performance or
operational metrics, the expected benefits to Travelocity or Sabre
Holdings Corporation of the agreement described herein, or other
statements about anticipations, beliefs, expectations, hopes, intentions
or strategies for the future, may be forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
Readers are cautioned not to place undue reliance on forward-looking
statements. All forward-looking statements are based upon information
available to Sabre Holdings Corporation on the date this report was
submitted. Sabre Holdings Corporation undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Any forward-looking
statements involve risks and uncertainties that could cause actual events
or results to differ materially from the events or results described in
the forward-looking statements, including risks or uncertainties related
to: the computer reservation system rules proposed by the Department of
Transportation, uncertainties inherent in the government review of the
Agreement under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended, obtaining the approval of MyTravel Group PLC`s shareholders,
other legal and regulatory issues, the integration of any acquired assets,
such as acquired technology, into Travelocity, and Sabre Holdings
Corporation`s revenues being highly dependent on the travel and
transportation industries. Sabre Holdings Corporation may not succeed in
addressing these and other risks. Further information regarding factors
that could affect our financial and other results can be found in the risk
factors section of Sabre Holdings Corporation`s most recent filing on Form
10-Q with the Securities and Exchange Commission.