OTV Onetravel Hlgs

OneTravel Holdings, Inc. (AMEX: OTV), a leading online and offline provider of travel and leisure services announced its estimated year-end results for the fiscal year ending June 30, 2005. As earlier announced the Company has not yet been able to file its form 10-K due to the work relating to the accounting for the integration of two major acquisitions, one in the third quarter and the other in the fourth quarter of the company's fiscal year ended June 30, 2005, along with a major financing in the fourth quarter which required additional man-hours for a complete review, but the company believes that the following reflects the results of operations for the year ending June 30, 2005. The Company needs to emphasize that the following numbers are not audited, but Company believes that the results filed on form 10-K will not change in any material respect. The results for the twelve months ended June 30, 2005 are summarized as follows: -0- *T $000s ----- Selected Financial Data ----------------------- Loss from operations -------------------- Revenues $ 85,733 Gross profit 4,321 Loss from operations (15,527) Loss from continuing operations (23,474) Net loss (39,051) Net loss attributable to common share holders $(53,606) EPS Loss from continuing operations ($0.95) Loss from discontinued operations ($0.63) Net loss ($1.58) Weighted average share outstanding 24,815,170 (as of June 30, 2005 pre reverse split) Summary balance sheet at June 30, 2005 -------------------------------------- Total assets $ 96,590 Total working capital $(33,098) The total shares outstanding at September 27th, 2005 10.43m (post reverse split) *T Of the loss from operations of $15,527,000 approximately $13,947,000 came from the existing infrastructure primarily the SunTrips operation and central corporate expenses. The existing SunTrips operation generated approximately $80,339,000 in revenues and a loss from operations of approximately $10,450,000. As previously disclosed, approximately $6,000,000 of the loss related to the implementation of SunTrips' new online reservation system in the first quarter of fiscal 2005. Central corporate expenses of operating the Charlotte, NC corporate office were approximately $3,481,000 and include salaries, office overhead, legal and accounting fees and the various other costs associated with operating a public company. The Charlotte office has now been closed. The new businesses Farequest Holdings and OneTravel generated approximately $5,394,000 of revenue since the date of their acquisitions (February-June 30, 2005 with respect to Farequest and April 15-June 30, 2005 with respect to OneTravel, Inc.), and an operating loss of approximately $1,600,000 of which $1,216,000 was depreciation and amortization. In connection with the release, the Company issued the following statement: The Company was advised by AMEX this morning that it would halt trading in the Company's stock pending a release on earnings. The Company had not intended to issue a release until it had filed its 10K, but in light of the circumstances has made this release. The Company continues to work diligently with its auditors to complete all of the information necessary to complete the form 10-K. The Company also reiterates that it is on course to meet the revised upward guidance provided in its September 29, 2005 release. Commenting on the release and related events, OTV President Marc Bercoon stated: "The halt in trading we experienced today is a direct consequence of the delay in filing the 10K. We have explained the delay and there is nothing more we can say except that we are doing everything in our power to work with the auditors until the process is completed. SunTrips continues to provide disappointing results, and we are pursuing strategic alternatives for this distribution channel. Bookings for the business for July were $33.6 million, and remain strong. We are disappointed because we feel that the growth in our business has been overshadowed by matters related to the delayed 10K filing." 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. (www.onetravel.com), both of which are leading online and offline providers of a full range of travel services, and FS SunTours, Inc., which sells leisure and vacation travel packages under the SunTrips(R) brand (www.suntrips.com). The Company derives additional revenue from operating other travel related web sites including 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 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. There is also no certainty that the Company will be successful in its quest to secure strategic alliances in its efforts to restructure its SunTrips operations. 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. 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.