First Choice Holidays PLC Completes Acquisition of Grand Expeditions, Inc.

LONDON -- First Choice Holidays PLC (STOCK EXCHANGE: FCD.L), a leading international leisure travel company based in London, UK, announced today that it has acquired Grand Expeditions Inc. and its related management team. The Grand Expeditions business consists of a portfolio of six best-in-class tour operators including Country Walkers, International Expeditions, The Moorings, Park East, TCS Expeditions and Travcoa. The completion of this acquisition marks a significant step for First Choice in its move into the North American market.

"We are delighted that Grand Expeditions will be joining First Choice. We have identified North America as a key source market for us in specialist niche segments. The companies within Grand Expeditions have significant growth characteristics and first-rate management teams with the drive and dynamism we want in the Group," said Peter Long, Chief Executive of First Choice. "By acquiring The Moorings, we are now able to offer the widest choice of sailing experiences in the world and we will ensure that we maximize the opportunities that this brings us. The escorted tours market, particularly at the premium end, has been an area we were keen to enter and through this acquisition we have a significant platform from which to develop with leading brands.

"With more than 200 collective itineraries spanning the entire world, Grand Expeditions is an ideal complement to First Choice's current portfolio of 72 brands offering a broad range of leisure travel experiences.

"The premium escorted tour companies within Grand Expeditions specialize in a segment of the market where we currently don't have a presence. This, coupled with the brand's excellent reputation and its strong presence among consumers in the United States, is what made it such an attractive proposition for us," added Long.

First Choice plans to continue to operate the Grand Expeditions companies from the US and the highly experienced management teams of those companies will not only remain with the business but will help identify, manage and integrate further acquisitions in their region markets.

Grand Expeditions, has an experienced and well-respected management team led by President and Chief Operating Officer, Hans Birkholz and Chief Financial Officer, Jeffery Padnis, who will remain with the Company. The current executive management structure of Grand Expeditions will be retained, with Birkholz reporting directly to Peter Long. Hans Birkholz has led the strategic and tactical operations of Grand Expeditions, and has been responsible for the overall growth of the Company. He assumed the position of President/COO of Grand Expeditions in July 2002.

"Under the ownership of NorthCastle Partners, Grand Expeditions has developed a group of premium niche companies that offer substantial growth opportunities," said Hans Birkholz. "By joining First Choice, we will have the necessary support to develop those businesses even further. First Choice has a proven track record of successfully integrating and growing acquisitions such as ours, and we look forward to being part of the Group."

In order to maximize its opportunities as a result the acquisition, the First Choice yacht charter company, Sunsail, will become part of Grand Expeditions and will report directly to Hans Birkholz. Both Lex Raas, President of The Moorings and Peter Cochran, Managing Director of Sunsail will continue to run their respective brands. With both part of Grand Expeditions, Sunsail and The Moorings will be able to leverage off the combined strength of their respective brands and market positioning.

First Choice, which assumes control of Grand Expeditions, effective immediately, anticipates significant business growth and benefits from this acquisition and intends to use Grand Expeditions as a platform to create a leading position in the US market.

First Choice Holidays PLC www.firstchoiceholidaysplc.com is a leading international leisure travel company. It operates from 17 major source markets, has 8 million customers and 72 brands. The Group reported profit before tax, goodwill amortization and exceptional items of GBP 114m for the year ended 31 October 2005. The Group operates in four Sectors each offering a particular type of leisure travel experience. It could be a two-week holiday in the Mediterranean or Florida, a trek up Mount Kilimanjaro, sailing in the Caribbean, a cultural tour in Egypt or booking a hotel for a weekend away.

Grand Expeditions, Inc. www.grandex.com is committed to providing upscale travelers with unforgettable luxury vacation experiences to destinations around the world. The Boca-Raton, FL-based company offers soft-adventure, cultural, sailing and natural history travel products to travelers seeking unique vacation alternatives. Grand Expeditions brands include:

The Moorings, www.moorings.com - a leading premier yacht charter company;

NauticBlue, www.nauticblue.com - offering superior power yacht vacations throughout the Caribbean and Mediterranean;

International Expeditions, www.ietravel.com - a leader in nature and environmentally responsible travel;

Travcoa, www.travcoa.com - the luxury travel experts;

TCS Expeditions, www.tcs-expeditions.com - the world leader in extraordinary private jet expeditions;

Park East, www.parkeast.com - the preeminent African Safari company;

Country Walkers, www.countrywalkers.com - the leading provider of worldwide walking, family, multi-adventure and snowshoe vacations.