Global Vacation Group, Inc. Prices IPO of 3 Million Shares; Lists Common Shares on NYSE.

WASHINGTON--(BUSINESS WIRE)--July 31, 1998--Global Vacation Group, Inc. today announced that its initial public offering of 3.0 million shares of common stock was priced at $14 per share and will trade under the symbol "GVG" on the New York Stock Exchange, according to Roger H. Ballou, chairman and CEO. Proceeds of approximately $36.6 million will be used to repay indebtedness in connection with the company's recapitalization and recent acquisitions. The managing underwriters for the offering are Salomon Smith Barney, NationsBanc Montgomery Securities LLC, BancAmerica Robertson Stephens, and ING Baring Furman Selz.

Global Vacation Group, Inc. says it is one of the largest U.S. providers of value-added vacation products and services targeted to higher-income travelers. The company assembles air, hotel, rental car and other travel components in bulk and provides complete vacations to travelers through retail travel distributors, such as travel agents, and other distribution channels. Global Vacation Group already is one of the leading providers of vacation packages to Hawaii and is among the largest providers of vacation packages for in-bound travelers to the U.S.

On a pro forma as-adjusted basis for the year ended December 31, 1997 and for the three months ended March 31, 1998, Global Vacation Group had net revenues of $115.2 million and $22.4 million, respectively, derived from a total dollar value of travel products and services sold of $507.0 million and $101.1 million, respectively. For the same periods, the company had pro forma as-adjusted net income (loss) of $4.3 million and ($1.5 million), respectively. More than 90 percent of the company's pro forma net revenues were derived from sales through retail travel agents and other travel intermediaries.

Global Vacation Group was initially funded by Thayer Equity Investors III, L.P., a $364 private million equity fund formed in 1996 by Frederick Malek, Paul Stern and Carl Rickertsen. The fund's leisure and travel investments are led by Malek, who is the former president of both Marriott Hotels and Resorts and Northwest Airlines. Following the IPO, Thayer Equity Investors will continue to own a substantial equity position in the company.

Since its founding in March 1998 as a recapitalization of international tour operator Allied Tours Holding Corp, Global Vacation Group has acquired MTI Vacations, Inc. and Globetrotters, Inc., popular-priced package vacation providers headquartered in Boston and Chicago, respectively; Classic Custom Vacations, Inc., a packager of customized vacations primarily to Hawaii, headquartered in San Jose, Calif.; and Haddon Holidays, Inc., located in Mt. Laurel, N.J., an East Coast provider of packaged vacations to Hawaii.

Copies of the prospectus related to the offering may be obtained from Smith Barney, Inc., 333 West 34th St., New York, NY 10001.

    CONTACT: Daly Gray Public Relations, Northfield, N.J.
              Jerry Daly or Carol McCune, 609/383-1414