Aviation Group, Inc. Announces Initial Merger Funding For Acquisition & Control Of Global Leisure, Inc.

Business Editors

DALLAS--(BUSINESS WIRE)--March 6, 2000

Remaining Portion of $18 Million Financing To

Be Completed Within Three Weeks

Aviation Group, Ltd. (NASDAQ: AVGP) announced today that it has received the initial funding necessary to acquire controlling interest in Global Leisure, Inc.

On February 28, 2000, Aviation Group announced its intent to acquire Global Leisure and merge with travelbyus.com, Ltd. (Toronto Stock Exchange: TBU, Frankfurt Stock Exchange: TVB), a Canadian-based e-commerce travel company. Global Leisure is a Seattle-based bulk-buyer of discount air tickets and packages, and has contracts with certain major domestic air carriers that add significantly to the combined enterprise's product content.

"With the initial funding of our financing in place, we have acquired Global Leisure and the first step in finalizing our merger is complete," said Lee Sanders, Aviation Group's Chairman. The Company reported that simultaneous with this funding, travelbyus.com, Ltd. and Aviation Group representatives assumed operating and board control of Global, and integration of its operations into travelbyus.com's e-commerce and other travel service distribution pipelines has been initiated.

Aviation Group also announced today that its legal and accounting representatives are working with travelbyus.com to prepare and file for regulatory and shareholder approval and all necessary merger documentation to be completed as soon as possible. The Company also said its investment advisor, Doerge Capital Management, Chicago, Illinois, expects to complete the remaining portion of the previously announced $18 million Aviation Group/travelbyus.com financing within the next two to three weeks.

"David Doerge and his staff have taken the lead role in putting this deal together and managing the U.S.-based funding process. Their efforts have sped up the transaction and will continue to move all the companies toward a timely and successful closing," Mr. Sanders added.

As previously reported, the combined business will represent, upon completion, approximately $120 million in pro forma annual revenues from gross travel billings exceeding $4.2 billion, and upon consolidation and elimination of overlapping expenses can be significantly profitable in the near term.

"There are numerous content-rich acquisition opportunities, and the combined entity will benefit from strategic operating leverage far exceeding other existing e-commerce travel service Internet portals in today's marketplace. This transaction repositions Aviation Group and its shareholders to lead in the creation of a major e-commerce global travel service provider," concluded Mr. Sanders.

About the Company post merger

Upon completion of the recently announced transactions, the Company will be positioned as a leading, fully integrated travel company offering its own products as well as products available from other companies through travelbyus.com's Web site, its unique 800-iTRAVEL telephone system and a large network of conventional travel agents. These operational and financial characteristics compare favorably to those of other companies in the field e.g., Expedia(R), Inc. (NASDAQ: EXPE) and Priceline.com (NASDAQ: PCLN).

Except for the historical information contained herein, this press release contains statements that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that may cause or contribute to such differences include, among other things, the Company's ability to close the proposed transaction disclosed above, dependence on certain customers, changes in the airline travel industry, seasonality of the Company's painting business, risk of future losses from operations, the ability to sell or merge all or a portion of the Company's businesses, uninsured casualty losses, environmental regulation of airline stripping and painting operations and increased competition in the airline services industry. Other risks and uncertainties include changes in business conditions and the economy, in general, changes in governmental regulations, unforeseen litigation and other risk factors identified in the Company's SEC filings under "Risk Factors." The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release.