ebookers Announces First Ever Profit Despite September 11

• Profit* of GBP 0.2m for Q3 2001. (Q2 2001: loss of GBP 5.9m.)
• Gross profit increases to GBP 6.4m, an increase of 146% compared to Q3 last year and 37% sequentially.
• Pre-tax loss falls by GBP 6m in just one quarter to GBP 2.6m (Q2 2001 loss GBP 8.6m).
• Profit* per ordinary share of 0.5 pence in Q3 2001 compared to a loss of 13 pence in Q2 2001 and 15 pence in Q3 2000.
• Cash at 30 September: GBP 22.9m.
• Gross margins based on gross sales improve sequentially from 9.5% to 12.9%.
• Gross sales net of cancellations rose by 80% year on year, and 1.4% sequentially to GBP 49.4m for the September quarter.
• 78% of gross sales are merchant fares.
• ebookers has implemented strong efficiency measures, including staff reductions and moving back office functions to India. Impact of these is expected to come through in 2002.
• All figures as per estimates given in announcement of 24 October and are unaudited and in UK GAAP.

Profits when stated above are adjusted and defined as: Earnings after net interest, before tax, depreciation, amortisation and stock compensation expense. (Please see page 4 calculations.)

Demand returning after September 11

The first 10 days of September were the strongest online in ebookers' trading history. For the 3 weeks after the September 11 total average daily sales were approximately 75% of those of September 1-10.

In the first week of October sales returned strongly to 89% of the September 1-10 period. There was a decline with the outbreak of conflict on October 7, but by the week October 15-21 sales were running at 85% of September 1-10 levels. These figures are particularly encouraging.

Outlook for fourth quarter

The last quarter of the year is traditionally ebookers' weakest due to seasonality. Also, during the fourth quarter ebookers is establishing IT and back office operations in India which are expected to be fully functional in Q1 2002 and should subsequently deliver substantial cost savings. This means that ebookers will be incurring additional expenditure in training and operating expenses during the present quarter.

Navneet Bali CFO commented: "Though demand has shown a positive and encouraging trend in recent weeks, due to current uncertainty it would be difficult to give accurate forecasts. Given this volatility, the additional expenditure we are incurring, and the seasonality in our business, we expect to make a modest negative EBITDA and pre tax loss in the fourth quarter. Cost savings from our efficiency-related investments are expected to make their real impact in 2002."

The achievement of these goals could be affected by factors outside ebookers control such as military conflict or further terrorist activity.

Long-term Outlook

Sanjiv Talwar, Managing Director commented: "Having achieved profitability two quarters in advance of our commitment, ebookers is investing in its infrastructure to give it the cost base for high future profits. All company activities are geared towards this aim. Our focus and efforts have now moved on towards delivering both growth and a positive EBITDA of over 3% of sales within the period Q4 2002 -Q1 2003, and of 5% within Q4 2003-Q1 2004."

Dinesh Dhamija, CEO ebookers commented:

"We are very happy to have achieved profitability despite the events of September 11. We believe the results reflect the extensive travel experience of the management team. We have been through and prospered in uncertain times before such as the Gulf War. We know how to manage costs and are prepared to take strong measures to do so. Another factor is our merchant fares which are the best online in Europe. We set our margins on them, so they are not subject to commission pressure. For instance, recent withdrawal of commission by Continental to internet travel agents does not affect ebookers -- quite apart from the fact that it only applies to US agents and not those in Europe."

About ebookers.com

ebookers.com is a leading pan-European online European travel agency offering complete one-stop, online shopping with a host of travel products and services, including negotiated discount airfares with 120 airlines, and discounts with over 14,000 hotels worldwide. ebookers.com is the technology and travel spin-off from Flightbookers plc, the London-based travel agency. The company was established as a separate Internet company in June 1999. ebookers.com and its subsidiaries sells to customer in the following 11 countries: Denmark, Finland, France, Germany, Ireland, Netherlands, Norway, Spain, Sweden, Switzerland and the UK. The company completed its initial public offering in November 1999 listing on Nasdaq and the Neuer Markt in Frankfurt, Germany. In April 2001, ebookers.com listed on the London Stock Exchange.

Forward Looking Statements

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. Potential risks and uncertainties include, without limitation, the company's ability to identify, acquire and integrate its potential subsidiaries across Europe, its ability to significantly increase its online revenues and sales volumes, to maintain and develop relationships with travel suppliers and strategic partners and to attract and retain customers, potential adverse changes in its gross mark up or in commission rates, unforeseen events affecting the travel industry, and the company's dependence on its ability to establish its brand. These and other risk factors are described in detail in the company's listing particulars dated 17 April 2001, as supplemented by the company's supplementary listing particulars dated 20 April 2001, and the company's Annual Report on Form 20-F for the year ended 31 December 2000 that was filed with the US Securities and Exchange Commission on 27 April 2001.