Deferral of scheduled capital repayment

Date: 29July 2011

On behalf of: Travelzest plc ("Travelzest" or the "Company")

Travelzest plc

Deferral of scheduled capital repayment

As announced in the Company's interim results on 22 July 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 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 31 August 2011 as well as a waiver from certain covenants agreed under the terms of the Existing Facility Agreement tested at 30 April 2011 and 31 July 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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