Deferral of scheduled capital repayment

Travelzest plc

§ Deferral of scheduled capital repayment

As announced in the Company's preliminary results on 2 February 2011, Travelzest has been reviewing its financing needs and has been in discussions with several banks in both the UK and Canadian markets to identify the best commercial terms available to the Company. Discussions with one bank are now at an advanced stage. The likely terms of the proposed new facility are more favourable to the Company than those in the existing facility.

Under the existing facility agreement provided by Barclays Bank plc ("Barclays") dated 19 June 2008 (as amended, varied and restated from time to time) (the "Existing Facility Agreement"), a capital repayment of £620,550.00 and CAD $2,668,557.57 (the "Capital Repayment") and associated interest became due on 31 May 2011.

Barclays has agreed to a deferral of the Capital Repayment until 30 June 2011 as well as a waiver from certain covenants agreed under the terms of the Existing Facility Agreement which were due to be tested at 31 May 2011.

Potential Offer

On 19 April 2011 the Company announced that it was in the very early stages of discussions over a potential offer for the entire issued and to be issued share capital of the Company (the "Potential Offer"). The Company confirms today that it is still in discussions in relation to the Potential Offer however there can be no certainty that the talks will result in an offer being made for the Company.

A further announcement on both the Company's debt facilities and on the Potential Offer will be made as and when appropriate.

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Enquiries:

Notes to Editors:

Travelzest plc (LSE:TVZ.L) is a dynamic travel group, with a collection of online travel retailers and specialized merchant operators, with operations in five countries. Included in the Travelzest agency family are Travelzest Holidays, itravel2000, The Cruise Professionals, holiday.co.uk, flight.co.uk, Fair's Fare, Wow House, and in the Travelzest merchant family are Best of Morocco, VFB Holidays, Peng Travel, Faraway Holidays, The Malaysia Experience, Tapestry Collection, Captivating Cuba, JMB Travel. Travelzest is traded on London's AIM Exchange under the symbol TVZ.

Investec Investment Banking, a division of Investec plc ("Investec"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Travelzest and for no-one else in connection with the Offer and will not be responsible to any person other than Travelzest for providing the protections afforded to clients of Investec, nor for providing advice in relation to the Offer or any other matters referred to herein.