Acquisition

Holidaybreak PLC
7 August 2000


                               HOLIDAYBREAK PLC
                               ('Holidaybreak')
                                       
                    Acquisition of Regal Diving & Tours Ltd

Holidaybreak PLC is pleased to announce that it has acquired the entire issued
share capital of Regal Diving & Tours Ltd, the market leading provider of
overseas diving holidays for a total consideration of £3.2m.  Regal will join
Holidaybreak's Adventure Holidays division, established in February of this
year, following the acquisition of Explore Worldwide.

The acquisition of Regal follows closely on from Holidaybreak's £1.8m
acquisition of the Internet hotel booking business, Hotelnet, which has become
part of the Group's Hotel Breaks division.  In both cases Holidaybreak has
acquired businesses which provide a natural fit and bring added value to the
Group's existing divisions.

Regal is very highly regarded within the diving industry and has been voted
'Best Dive Operator' by the readers of Diver Magazine for the past three years
and a high proportion of it's 8,000 customers come from repeats and
recommendations.  Whilst 80% currently travel to the Red Sea, the demand for
'exotic' destinations such as the Maldives and the Caribbean is growing
rapidly.  Holidays are provided for all diving levels with instruction,
specialist courses and 'liveaboard' safaris all available.  Turnover in the
year to 31st March 2000 was £3.8m and profit before tax £371,000.  A strong
growth trend is continuing into the current year.

The company is based in Ely, Cambridgeshire and was founded in 1988 by Andrew
Telford its Managing Director.  He will join the Board of Explore Worldwide
and will bring extensive knowledge and expertise to this part of the business.
Like Explore, Regal provides year round profitability and positive cash flow.

The £3.2m consideration will be payable in loan notes, whilst Holidaybreak
will inherit net cash balances of approximately £500,000.  Given the current
profitability and anticipated growth the transaction is expected to be
earnings enhancing in the first full year following competition.

Commenting on the acquisition, Richard Atkinson, Chief Executive, said: 'Regal
is an excellent fit for Holidaybreak and we are delighted to welcome it into
the Group.  It is a market leader in a growing market with a strong brand and
well deserved reputation for quality diving holidays.  Regal will benefit from
being part of Holidaybreak as well as increasing the Group's portfolio of
specialist holidays.'

For further information visit www.holidaybreak.co.uk and www.regal-
diving.co.uk.

Enquiries:    Holidaybreak plc                   Tel: [phone]
              Richard Atkinson, Chief Executive
              Bob Baddeley, Finance Director

              Hudson Sandler                     Tel: [phone]
              Michael Sandler
              Wendy Baker