|GRAPHIC|
ONETRAVEL HOLDINGS, INCORPORATED
1200 LAKE HEARN DRIVE SUITE 300 ATLANTA, GA 30319
o TEL 404-256-6620 o FAX 404-943-1094
(www.onetravelholdings.com)
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FOR IMMEDIATE RELEASE
ONETRAVEL HOLDINGS COMPLETES SALE OF SUNTRIPS BRAND
ATLANTA - March 9, 2006--OneTravel Holdings, Inc. (AMEX: OTV), a leading online
and offline provider of travel and leisure services, announced today that its
wholly-owned subsidiary FS SunTours, Inc. d/b/a SunTrips has closed on the sale
of its intellectual property including the SunTrips brand name to Crystal
Hospitality Holdings, Inc. The transaction was restructured, and the terms and
consideration were revised from that previously disclosed. As consummated, the
sale consideration is principally an obligation by Crystal to expend not less
than $1.2 million annually, for seven years, either paid in cash to FS SunTours,
Inc. or through the satisfaction of certain FS SunTours liabilities. FS SunTours
is coordinating with Crystal in order to effect a smooth transition. All
SunTrips customers who are scheduled for travel after April 3, 2006 will be
contacted to confirm or arrange alternative travel plans.
A more complete description of the sale terms will be set forth in the Company's
Form 8-K filed in connection with this transaction.
Commenting on the Sale for FS SunTours, President Matthew Holliday stated: "The
SunTrips brand is in much better hands owned by Crystal Hospitality Holdings,
Inc. The SunTrips brand is still very strong, but capital constraints as well as
inherited operational inefficiencies have greatly limited our ability to make
and implement strategic decisions that may have enabled us to turn the business
around. The structure of this transaction will enable FS SunTours, Inc. to
maximize the consideration to be received for the business in its present
condition."
Also commenting on the sale, OTV President Marc Bercoon stated: "Despite our
efforts to turn the business around, FS SunTours has suffered significant losses
for an extended period of time and it had to be sold to stop the operating
losses. FS SunTours intends to retain a consultant to review all of FS SunTours'
transactions and activities in order to wind down the business in a manner that
will best serve FS SunTours' customers and creditors."
ABOUT ONETRAVEL HOLDINGS, INC. (AMEX:OTV)
OneTravel Holdings, Inc. (www.onetravelholdings.com) derives all of its revenues
from its travel business subsidiaries, Farequest Holdings, Inc., operating under
the name 1-800-CHEAPSEATS, www.cheapseats.com and OneTravel, Inc. operating
under the names www.onetravel.com, www.discounthotels.com and www.11thhour.com.
Statements in this news release about anticipated or expected future revenue or
shareholder value growth or expressions of future goals or objectives, including
statements regarding market conditions or whether current plans to grow and
strengthen the Company's business will be implemented or accomplished, are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. When used in this release and documents, the
words "anticipate", "believe", "estimate", "expect" and similar expressions, as
they relate to the Company or its management, are intended to identify such
forward-looking statements, but are not the exclusive means of identifying these
statements. All forward-looking statements in this release are based upon
information available to the Company on the date of this release. Any
forward-looking statements involve risks and uncertainties, including the risk
that the Company will be unable to grow or strengthen its business due to a lack
of capital or a change in market demand for its products and services or to
fully or effectively integrate all business units or the inability to realize
anticipated cost savings or revenue and stockholder value growth opportunities
associated with the acquisitions of Farequest Holdings, Inc. and
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OneTravel, Inc. The Company has previously mentioned in conference calls that
gross bookings are not equal to gross revenues under generally accepted
accounting principles, so no inference can be made about profitability based on
gross bookings unless expressly stated by the Company. The Company is also
subject to those risks and uncertainties described in the Company's filings with
the U.S. Securities and Exchange Commission ("SEC"), including the Company's
historical losses and negative cash flow, its need for additional capital,
including to finance the $12,500,000 promissory notes payable to the former
stockholders of OneTravel, Inc., and that future financing, if available, will
dilute the Company's current common stockholders, plus the Company's ability to
maintain listing with the American Stock Exchange, which if not maintained could
have an adverse affect on the Company's stock value and liquidity. Additionally,
forward-looking statements concerning the performance of the travel and leisure
industry are based on current market conditions and risks, which may change as
the result of certain regulatory, political, or economic events, a shift in
consumer travel preferences, as well as those risks and uncertainties described
in the Company's SEC filings, which could cause actual events or results to
differ materially from the events or results described in the forward-looking
statements, whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking
statements. For a complete description of the items approved at the annual
stockholder's meeting, the Company's proxy statement is available for viewing in
the Company's SEC filings.
Company Contact:
Robert Prag
Del Mar Consulting Group
858-794-9500
rprag@delmarconsulting.com
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