800 Travel Announces Results for the Third Quarter of 2000; Gross Reservations Increase 10%; Internet Bookings Increase by 406%.

Business Editors/Travel & Hospitality Writers

TAMPA, Fla.--(BUSINESS WIRE)--Nov. 14, 2000

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

800 Travel Systems reported $3.5 million in revenues for the third quarter of 2000, unchanged from revenues reported for third quarter of 1999. The Company reported a net loss of $453,570 for the third quarter of 2000 compared to income of $204,809 for the same period in 1999. The net loss per diluted share for the third quarter of 2000 was $(0.06) compared to earnings per diluted share of $0.03 for the comparable period last year. Gross reservations for the third quarter of 2000 increased by 10.0%, rising to $23.6 million from $21.4 million in the same period during the prior year.

For the first nine months of 2000, revenues totaled $10.0 million, an increase of 6.5% from the first nine months of 1999. The Company experienced a net loss of $889,062 for the first nine months of 2000 compared to income of $217,362 for the same period in 1999. The net loss per diluted share was $(0.12) for the first nine months of 2000 compared to net income of $0.03 for the same period in 1999. Gross reservations for the nine months ended September 30, 2000 totaled $68.3 million, an increase of 13.4% from the $60.2 million booked during the first nine months of 1999.

Peter M. Sontag, Chief Executive Officer, commented, "The third quarter has been another eventful period for 800 Travel Systems. The merger in August with Prestige Travel Systems was an important step forward in our growth strategy allowing us to diversify our menu of travel products by offering cruises and tours. The merger also provides the benefit of an existing network of approximately 1,500 independent remote travel agents, which the Company plans to utilize to grow its future revenues through the development of certain plans and programs. In the third quarter we have also geared up to offer travel fulfillment to other online travel service providers. We consider travel fulfillment to be a key ingredient to our growth and marketing strategy and in furtherance of this strategy we have recently announced the signing of two revenue sharing travel fulfillment service contracts."

Sontag continued, "We have assembled a talented team of professionals that strengthen our ability to better manage the areas of agent recruitment, employee training and development as well as employee turnover. Customer service and customer retention are also functions that we are experiencing significant improvement in. We believe quality customer service is a critical element needed to grow our business. Website management, marketing, and maintenance are also areas of the business that we are continuously trying to improve upon."

Robert M. Morgan, Chief Financial Officer, added, "In the first nine months of this year we have made significant investments in people, infrastructure, in-house technology, marketing, customer service, telecommunications, quality control, creativity and product development. As expected, we have continued to experience the additional expenses related to these improvements of approximately $245,000 and $663,000 for the third quarter and first nine months of the year respectively. As anticipated certain of these expenses are expected to continue through the balance of the year as we continue to implement our strategies to grow our business."

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 Website and through it's easy to remember toll free numbers "800-LOW-AIRFARE" (800-569-2473) AND "800-FLY-4-LESS" (800-359-4537). A distinguishing feature of the www.LowAirfare.com Website 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 300 people, combined, in the Company's 33,000 square-foot data communications center in Tampa and a similar center in San Diego, California. The Company also operates CruiseBrokers.com (www.CruiseBrokers.com), which specializes in discount cruise vacations; Prestige Travel Club (www.prestigetravelclub.com), which offers discount travel services on cruises, tours, air, and other travel related services to individuals, businesses and not-for profit organizations; and Prestige Travel Systems (www.ptstravel.com), which comprises a network of approximately 1,500 full service independent remote travel agents.

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.