FORT WORTH, Texas, June 26 / Sabre Holdings Corporation TSG announced today that it has entered into an agreement to acquire a 51 percent stake in Dillon Communication Systems GmbH (DCS). Hamburg-based DCS is widely acknowledged to be the fastest-growing supplier of electronic travel distribution services in Germany and has operations in the United Kingdom, Belgium, the Netherlands, Austria, Luxembourg, Switzerland and Poland.

The move increases Sabre's presence in Germany from 1,000 travel agency locations to 5,900. Together, DCS and Sabre will have a combined market share of 30 percent of all German travel agency locations.

Sabre anticipates that the deal will boost its German revenues significantly, with travel distribution through Sabre in Germany expected to increase by 100 percent over the next four years. This larger booking base will give the company and Sabre-connected travel agencies more opportunity to use Sabre's value-added solutions for travelers like Sabre Virtually There (www.virtuallythere.com).

The two companies will together provide enhanced travel distribution, with greater depth and product range. This includes reservations, ticketing and back-office functions for scheduled and chartered air, hotel, car, rail, ferry and tour products.

In addition, both companies plan to continue the integration of current technologies like TCP/IP Internet protocol and Java, along with emerging technologies such as Wireless Application Protocol (WAP), into product offerings. These capabilities, along with the local content DCS is able to provide, will further enhance the companies' drive into the pan-European market for online travel.

Chris Kroeger, senior vice president for Sabre's Europe, Middle East and Africa region, said the deal would reinforce Sabre's competitive position in Europe and support the company's strategy – stated earlier this year – of aggressively growing its European market share.

Through partnering with Sabre, the deal also allows DCS to expand its content and capabilities throughout Europe.

"By combining Sabre's global content and market leadership with the local content and capabilities of DCS, we will both be able to more effectively target strategic markets such as agency chains, franchises and the e-commerce market," Kroeger said. "We each want to strengthen our ability to meet existing customer needs, and to target new segments in the travel market."

DCS managing director Tom Dillon said: "The travel industry is changing dramatically. Our common customer base is increasingly specifying the need for pan-European solutions and the DCS/Sabre partnership is in a unique position to meet this demand."

Both Dillon and Kroeger emphasised that there would be no redundancies or job losses as a result of the acquisition. Both said that with the anticipated growth of the companies, they would need to grow their teams to meet customer needs. Sabre currently employs 54 people in Germany and DCS employs 100 people.

Dillon, who has more than 20 years' experience with travel reservation software, founded DCS in 1990. He will remain with DCS as managing director and will report to Kroeger. Tasso von Heintschel will continue in his position as managing director of Sabre Germany, also reporting to Kroeger.

In 1994 DCS and Sabre signed a co-operation agreement to provide access to the Sabre system for German leisure travel suppliers. This has developed successfully over the years and led to the decision to enter into an acquisition agreement.

About Sabre

Sabre is the global leader in applying information technology to meet the needs of the travel and transportation industries with advanced and innovative technology skills to deliver progressive solutions. Headquartered in Dallas/Fort Worth, Texas, the company has more than 10,000 employees worldwide who span 45 countries. Sabre reported 1999 revenues of $2.4 billion, up 5.6 percent from 1998. Net earnings, excluding special items, were $264 million, up 15.2 percent from the prior year. More information on Sabre is available on the World Wide Web at www.sabre.com. Sabre and the Sabre logo are registered trademarks of an affiliate of Sabre Inc.

Statements in this news release that are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements in this release are based upon information available to Sabre on the date of this release. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks related to: Sabre's relationships with American and US Airways and their affiliates; competition and technological innovation by competitors; risks related to Sabre's technology; seasonality of the travel industry and booking revenues; sensitivity to general economic conditions and events that affect airline travel; risks associated with Sabre's international operations; and legal and regulatory issues. Further information regarding factors that could affect Sabre's financial and other results is included in Sabre's filings with the Securities and Exchange Commission. Sabre undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.