Affinity International Travel Systems to Focus On E-commerce Plan; Sells Off Prestige Unit and Divests Other Retail Operations.

Business Editors

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jan. 7, 2000

Affinity International Travel Systems, Inc (OTC BB:AFFT) announced today that it intends to focus on its e-commerce plan and that it has sold its Prestige Travel Services Unit, a wholly owned subsidiary. Prestige operated retail travel agencies in Tampa and Ft. Lauderdale, Florida and also sustained a home-based travel agent business. During the six months ended June 30, 1999, Prestige Travel Services had net revenues of $626,000 and incurred a net loss of $58,000. During the three months ended September 30, 1999, Prestige Travel Services had net revenues of $335,000 and incurred a net loss of $48,000.

Additionally, Affinity announced that it has terminated its agreement to manage and acquire Travel Systems International of St. Petersburg, Florida and that it has sold its Goldmark Travel unit. The Company's Goldmark Travel unit has not contributed meaningfully to the Company's net revenues or results of operations since it was acquired in July 1999.

The Company does not expect to realize any material gain or loss in connection with the sale of Prestige Travel Services or Goldmark Travel.

The Company has one unit left in the retail market, Intrepid Travel of Seminole, Florida, which it plans on selling or integrating into its wholesale operation at SunStyle International Holidays, in St. Petersburg, Florida.

Chief executive officer of Affinity International, Daniel Brandano, stated, "Affinity has made a strategic decision to focus on its e-commerce plan and sell its travel products to consumers and agents via its Internet websites, not through traditional retail store front operations."

Chief financial officer of Affinity International, Gerard LaMontagne, commented, "With the most recent reduction of airline commissions from 8% to 5%, it is now very difficult to attain profitable retail operations. The reduction of airline commissions effectively reduces our gross profit margin on airline ticket sales substantially. Due to the eroding margins, we believe we will not be able to generate a satisfactory return on our investment from retail operations and therefore should shift the capital which has been devoted to retail operations to our strategic e-commerce plan."

Brandano further noted, "With the retail operations largely off the agenda of our management, we can totally focus on delivering a top quality Internet product. We expect to launch our new Web offering, Faraway.com, around the end of the first calendar quarter 2000 and we believe that our e-commerce plan should deliver higher revenues and stronger margins than would a traditional brick and mortar environment."

About Affinity International Travel Systems, Inc.

Affinity International Travel Systems, Inc. is leveraging its Internet sales channels, unique brands and large base of travel content products in the explosive online travel industry. The Company's network architecture, Internet based software engines and background as a travel wholesaler should position it to provide an expansive online offering at highly competitive prices, with outstanding customer service.

This release contains forward-looking statements, made subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties that might cause the actual results to differ materially from those projected in any forward-looking statements. Potential risks and uncertainties include, without limitation, the following: the Company may encounter difficulty in developing its websites; it may have difficulty raising the capital it needs to develop and market its websites and fund its operations; the Internet may not attract the degree of travel business that the Company expects; the Company may have difficulty competing with other travel companies, including other Internet companies; the development and introduction of competing or superior web portals; market awareness and acceptance of the Company's website and product offerings; changes in government regulation affecting the Company's business; and overall market demand for travel services.

For additional updates, see www.otcfn.com/afft and www.affinityinternational.com