Trading Update & Appointment of Non-Exec Director

Travelzest plc

§ Pre-Close Period Trading Update

§ Appointment of new Non-Executive Director

Travelzest (AIM: TVZ), the UK and Canadian holiday retailer, is pleased to provide the market with an update on trading prior to entering its close period in relation to the six months ended 30 April 2010.

Trading Update

The Board of Travelzest is pleased to announce that trading for the half year to 30 April 2010 has shown strong improvement over the same period last year.

We continue to see an increased level of consumer demand in UK, Canada and USA markets, with improved outbound travel interest seen in all regions.

New marketing and operational strategies are showing strong signs of improving brand awareness and market share capture in both the UK and Canada. More specifically, Winter 2009/10 passenger bookings across the Group are up approximately 14% year on year, with Canadian Operations providing the majority of the growth for this period. Advance bookings for Summer 2010 with the UK and Canadian Operations are both up year on year approximately 30% and 22% respectively.

Key strategies for financial year 2010 continue to be implemented, with:

- a new unified distribution and booking platform to be launched in early August, initially to the luxury and upper mid-market consumers in the UK . This platform will facilitate improved marketing of product and services for both our integrated tour operation, and our proposed non-integrated tour operator, products.

- our integrated tour operation product being promoted through Canadian advertising channels and distribution platform.

- the integration and centralisation of various processes and systems between our UK and Canadian operations.

- continued consolidation of infrastructure including closure of the Berkeley Square office. Further infrastructure consolidation is planned for second half of 2010.

The eruption of Mount Eyjafjallajökull in Iceland has had a minimal impact on the Group. Our primary concerns have been to ensure that our affected customers have had updated information on the situation and to work with our global partners to find alternative means of getting our customers home.

The Board expects to publish its results for the six months ended 30 April 2010 in June 2010.

Appointment of new Non-Executive Director

The Board also today announces the appointment of Nigel Jenkins as a Non-Executive Director. The appointment is with immediate effect.

Mr. Jenkins, age 57, has been involved in the travel industry for 35 years. A founding Director of Unijet in 1981 he joined First Choice Holidays PLC in 1998. He led the restructure and turnaround of their Canadian division before returning to the UK in 2004 to become Managing Director of their Activity Holiday Sector and a member of their Group Management Board. He retired from First Choice in October 2006. He is currently Non-Executive Chairman of KBC PR & Marketing, and Non-Executive Director of All Leisure Group plc.

On the appointment of Nigel Jenkins and the trading update, Jonathan Carroll, Travelzest's Chief Executive Officer, commented:

"Our team both in Canada and the UK has performed exceptionally well over the past 6 months to execute all the new strategies we have developed that will bring Travelzest into a new era. We still have a number of exciting projects to launch and new strategies to develop, and feel that, with our team working as strongly as they are doing, our trading in the second half has great promise."

"We are delighted that Nigel has agreed to join Travelzest as a Non-Executive Director. His experience, expertise and wealth of industry contacts will be invaluable as we drive the Group forward. Over the last year, we have taken significant steps to position the Company to thrive; this appointment is a vital ingredient in the new mix."

Nigel Jenkins, Travelzest's new Non-Executive Director, commented:

"Travelzest is a unique business with tremendous potential. I am very excited about joining the Company at this point in time. I believe it is now positioned to take a quantum leap; continuing to give its customers a truly unique holiday experience, whilst driving shareholder value."

It is the Board's intention to appoint an additional Non-Executive Director to further increase expertise on the Board.

Mr. Jenkins's current and past directorships over the last five years are as follows:

600035 B.C. LTD

ALL LEISURE GROUP PLC

CONNOISSEUR CRUISERS LIMITED

CONTINENTAL HOLIDAY CRUISERS LIMITED

CROWN BLUE LINE GMBH

CROWN BLUE LINE LIMITED

CROWN CRUISERS LIMITED

CROWN HOLIDAYS LIMITED

CROWN TRAVEL LIMITED

FIRST CHOICE MARINE LIMITED

ISLAND SAILING LIMITED

KBC PR & MARKETING

PORTER AND HAYLETT LIMITED

QUILL TRAVEL SERVICES LIMITED

STELOW LTD (dba Youtravel)

SUNSAIL DEUTSCHLAND GmbH

SUNSAIL LIMITED

SUNSAIL WORLDWIDE SAILING LIMITED

SUNSAIL, INC.

SUNSHINE BOATS LIMITED

TRAVEL CLASS HOLDINGS LIMITED

TRAVEL CLASS LIMITED

TRAVEL CLASS TRANSPORT LIMITED

Save for the information disclosed above there is no other information to be disclosed under schedule 2, paragraph (g) of the AIM rules.

- Ends -

Enquiries:

Notes to Editors:

The Travelzest group currently comprises:

Canadian Operations

itravel2000 itravel2000.com 

The Cruise Professionals www.cruiseprofessionals.com

UK Operations

Holiday.co.uk www.holiday.co.uk 

Flight.co.uk www.flight.co.uk 

Best of Morocco www.bestofmorocco.co.uk

VFB Holidays www.vfbholidays.com

Peng Travel www.pengtravel.co.uk

Faraway Holidays www.farawayholidays.co.uk

The Malaysia Experience www.malaysiaexperience.co.uk

Tapestry Collection www.thetapestrycollection.com

The Wow House Company www.thewowhousecompany.co.uk

Captivating Cuba www.captivatingcuba.com

JMB Travel www.jmb-travel.co.uk

Fair's Fare www.fairsfare.com