OTV Onetravel Hlgs

OneTravel Holdings, Inc. (AMEX: OTV), a leading online and offline provider of travel and leisure services announced today that gross bookings for its travel divisions have continued to grow at a greater pace than anticipated when it issued guidance in March 2005. The updated gross bookings estimates for the fiscal year ending June 30, 2006 across all divisions is expected to be $400-425 million whereas the March 2005 guidance provided a range of $300-$330 million. The Company's EBITDA guidance for the 2006 fiscal year has been increased to $8-$12 million from a range of $6-$10 million, based on the previously issued range of 2%-3% of gross bookings. While gross bookings are not equal to gross revenue for financial reporting purposes under generally accepted accounting principles, the Company believes gross bookings are an important measure in determining overall operating performance. Commenting on the updated guidance OTV Chairman and CEO, William Goldstein commented: "We have always been confident that we would be able to drive growth in our business and we see this growth continuing into fiscal 2007. We attribute the growth to many factors including our marketing programs, great pricing, a strong focus on customer service, the strength of the company's private label program, and the size and growth of the online travel market." OneTravel also announced that it has filed Form 12b-25 to extend the filing date of the Company's Form 10-K. The Form 12b-25 sets forth the reasons for the extension. The Company also announced that it expects to file its Form 10-K within the fifteen calendar day extension period. At that time, the Company intends to schedule a conference call to discuss the June 30, 2005 fiscal year end results along with an overview of fiscal year 2006. Commenting on the filing Marc Bercoon, President of OTV stated: "We worked very diligently to file the 10-K on or before September 28, but ultimately the complexity and number of transactions that occurred during the 2005 fiscal year made filing for the extension the prudent decision. The transactions during the 2005 fiscal year included the sale of Vacation Express, which at the time of its sale represented approximately 50% of the company's revenues, the acquisition of both Farequest Holdings and OneTravel, Inc., and several financing transactions, which totaled in excess of $44 million." About OneTravel Holdings Inc. (AMEX:OTV) OneTravel Holdings, Inc. (www.onetravelholdings.com) derives all of its revenues from its travel business subsidiaries, Farequest Holdings, Inc., operating under the name 1-800-CHEAPSEATS (www.cheapseats.com) and OneTravel, Inc. (www.onetravel.com), both of which are leading online and offline providers of a full range of travel services, and FS SunTours, Inc., which sells leisure and vacation travel packages under the SunTrips(R) brand (www.suntrips.com). The Company derives additional revenue from operating other travel related web sites including www.discounthotels.com and www.11thhour.com. Statements in this news release about anticipated or expected future revenue or shareholder value growth or expressions of future goals or objectives, including statements regarding market conditions or whether current plans to grow and strengthen the Company's business will be implemented or accomplished, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release and documents, the words "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. All forward-looking statements in this release are based upon information available to the Company on the date of this release. Any forward-looking statements involve risks and uncertainties, including the risk that the Company will be unable to grow or strengthen its business due to a lack of capital or a change in market demand for its products and services or to fully or effectively integrate all business units or the inability to realize anticipated cost savings or revenue and stockholder value growth opportunities associated with the acquisitions of Farequest Holdings, Inc. and OneTravel, Inc. The Company has previously mentioned in conference calls that gross bookings are not equal to gross revenues under generally accepted accounting principles, so no inference can be made about profitability based on gross bookings unless expressly stated by the Company. There is also no certainty that the Company will be successful in its quest to secure strategic alliances in its efforts to restructure its SunTrips operations. The Company is also subject to those risks and uncertainties described in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Company's historical losses and negative cash flow, its need for additional capital, including to finance the $12,500,000 promissory notes payable to the former stockholders of OneTravel, Inc., and that future financing, if available, will dilute the Company's current common stockholders. Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political, or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's SEC filings, which could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements. For a complete description of the items approved at the annual stockholder's meeting, the Company's proxy statement is available for viewing in the Company's SEC filings.