Travelocity Vacations will launch the Walt Disney World Resort product during the first quarter of 2002, as Travelocity.com continues to expand its merchant model and diversify revenue streams for air and vacations sales.

Travelocity.com will offer land-only and air-inclusive vacation packages for all on-site Walt Disney World Resort hotels and will include admission to Disney's theme parks in Orlando. Disneyland Resort vacation packages will be added to Travelocity Vacations' California product line during the year. Disney vacation packages will be available for booking either online (www.travelocity.com) or over the phone with a Travelocity.com vacation professional.

"Having the opportunity to dynamically package Disney vacations is a monumental achievement. We have tremendous customer demand for Disney's products, and are delighted to offer theme park tickets and packages for all onsite hotels at the Walt Disney World Resort," said Terrell B. Jones, president and chief executive officer of Travelocity.com. "We look forward to building a long and mutually rewarding partnership with Disney."

"Travelocity is one of the most recognizable brands in the online travel business," said Randy A. Garfield, CTC, executive vice president of sales and travel operations for Walt Disney Parks and Resorts. "This new relationship will enable us to extend the distribution of our product by offering Disney vacations to the millions of loyal Travelocity members."

The agreement provides Disney with dedicated marketing campaigns to Travelocity.com's more than 32 million members, and strengthens the growing Travelocity Vacations product line-up.

Travelocity.com also will work closely with Disney to incorporate extensive Disney content into the Web site's vacation section to provide a high-quality shopping experience. The addition of Walt Disney World and Disneyland Resort vacations completes the Disney Destinations portfolio offered by Travelocity, which already features Disney Cruise Vacations.

Walt Disney Parks and Resorts operates The Walt Disney Company's theme park and resort businesses in the United States, including the Walt Disney World Resort in Florida and the Disneyland Resort in California.

Travelocity.com Inc. [NASDAQ: TVLY] , a database-driven travel marketing and transaction company, provides Internet and wireless reservations information for more than 700 airlines, more than 50,000 hotels and more than 50 car rental companies. In addition, Travelocity.com offers more than 6,500 vacation packages, tour and cruise departures and a vast database of destination and interest information. Travelocity.com employs more than 1,000 customer service professionals, has sold more than 20 million airline tickets and has registered more than 32 million members.