800 Travel Announces Results for the Second Quarter of 2000.

Busines/Travel Editors

TAMPA, FL--(BUSINESS WIRE)--August 10, 2000

Gross Reservations Rise 18%; Internet Bookings Increase by 800%

800 TRAVEL SYSTEMS, INC. (NASDAQ: IFLY, IFLYW), a leading provider of travel-related products and services through its website www.LowAirfare.com and call centers, today announced results for the second quarter ended June 30, 2000.

800 Travel Systems reported $3.5 million in revenues for the second quarter of 2000, an increase of 14.6% from the $3.1 million in revenues reported for second quarter of 1999. The Company reported a net loss of $362,155 for the second quarter of 2000 compared to income of $119,874 for the same period in 1999. The net loss per diluted share for the second quarter of 2000 was $(0.05) compared to earnings per diluted share of $0.01 for the comparable period last year. Gross reservations for the second quarter of 2000 increased by 17.9%, rising to $23.6 million from $20 million in the same period during the prior year.

For the first six months of 2000, revenues totaled $6.6 million, an increase of 10.8% from the first six months of 1999. The Company experienced a net loss of $435,492 for the first six months of 2000 compared to income of $12,553 for the same period in 1999. The net loss per diluted share was $(0.06) for the first six months of 2000 compared to breakeven operations for the same period in 1999. Gross reservations for the six months ended June 30, 2000 totaled $44.7 million, an increase of 15.3% from the $38.7 million booked during the first half of 1999.

Peter M. Sontag, Chief Executive Officer, commented, "The second quarter has been very eventful for 800 Travel Systems. From a financial perspective, while we are very pleased with the significant increases in gross reservations and revenues that the Company realized, as anticipated, we have experienced increases in our marketing and operating expenses. We are particularly proud of the increase in gross reservations from Internet bookings, which rose by nearly 800% to $2.6 million for the quarter. In fact, Internet bookings accounted for almost 11% of the Company's business during the second quarter. This represents an enormous step forward from the same period last year, when www.LowAirfare.com was still very new and almost all of our reservations were booked through the Company's call centers."

Mr. Sontag continued, "We have been making progress in many other areas as well. After the successful launch of our enhanced website in late April, we entered into a strategic marketing alliance with First Internet Travel LLC on July 5th to broaden our product line to include hotel reservations worldwide. The first part of that reciprocal referral service is now operational so that 800 Travel has begun referring calls for hotel reservations to First Internet. As part of the larger marketing initiative we have undertaken, and as previously disclosed, the Company hired an experienced director of e-commerce marketing and brought on a chief technology officer to help leverage Internet technologies with our low cost, call center operations and travel industry expertise. In addition, we continue to explore acquisition candidates and have identified several promising opportunities."

"The many initiatives we have undertaken, particularly to increase our Internet presence, have of course meant additional marketing and operating expenses, which we anticipate will continue through the balance of the year. However, our strategy is one that hedges e-commerce risks and realities. Unlike some of our competitors who are content with large top line growth and large losses, 800 Travel's strategy is to grow in a measured and deliberate way by focusing on the best opportunities in the Internet travel market place. We are very encouraged by the 18% increase in gross reservations with minimal losses that this strategy helped us achieve in the second quarter and look forward to continued growth during the remainder of the year."

About 800 Travel Systems

800 Travel Systems is a leading provider of low-priced travel related products and services through its nationally recognized http://www.LowAirfare.com web site and through its easy to remember toll free numbers "800-LOW-AIR FARE" (800-569-2473) AND "800-FLY-4-LESS" (800-359-4537). A distinguishing feature of the www.LowAirfare.com web site is its ability to connect live reservation agents directly with on-line travel consumers in an instant messaging format that allows consumers to book air travel, on-line, in real time. 800 Travel Systems is headquartered in Tampa, Florida and employs more than 350 people, combined, in the Company's 33,000 square-foot data communications center in Tampa and a similar center in San Diego, California.

Forward-looking and cautionary statements:

This press release contains statements which may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. This press release may include forward-looking statements that do not refer strictly to historical results or actions, which although believed to be reasonable, are inherently uncertain and difficult to predict. Such statements are subject to certain risks and uncertainties inherent in 800 Travel Systems' business and investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those projected as a result of various factors as set forth from time to time in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or revise the forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.