Interim Trading Statement

Online Travel Corporation PLC
30 August 2000


ONLINE TRAVEL CORPORATION PLC
INTERIM TRADING STATEMENT

Online Travel Corporation plc ('OTC' or the 'Group'), the online leisure and
business travel company, which floated on the Alternative Investment Market of
the London Stock Exchange ('AIM') in June of this year, today announces its
interim trading statement for the 8 month period ended 30 June 2000.

Highlights

- 105.6% growth in gross sales for the eight month period, to £15m (1999:     
  £7.3m) 

- 203% growth in gross sales for the last quarter to 30 June 2000, to £8.1m   
  (1999 £2.9m)

- 81.4% increase in unique users from 198,000 in the quarter to 31 March 2000 
  to 287,000 in the quarter to 30 June 2000 at an average acquisition cost of 
  40 pence per user

- Overall gross profit margins of over 13% achieved for the 8 month period

- Forty websites launched with Strategic Partners in eight months, with 14 new
  sites launched in the last two months 

- Successful expansion into Europe with the launch of a new brand in Ireland, 
  Unison Travel, in association with Independent News & Media PLC 

- Over 200 active corporate accounts in the corporate travel division

- 40% growth in concessional travel trade division, including five new web    
  sites and an exclusive online service for 40,000 Preferred Travel Agents of 
  British Airways (PATC)

- £5.1 million net current assets at 30 June 2000

Managing Director of OTC, Mark Jones, commented: 

'We are pleased to be able to report on the encouraging progress made by the
Group since its flotation in June.  We have seen a substantial increase in
users and turnover, and the number of our strategic partnerships has increased
considerably. We continue to invest in the functionality of our website and
support services and we expect this, coupled with our enhanced e-CRM strategy,
to increase further our conversion rates and encourage loyalty and repeat
bookings.'

 'As stated at the time of our flotation, we have begun to move in Europe with
the launch of a new brand in Ireland. We look forward to the continuing growth
of the Group and reporting on our progress.' 
 
Enquiries:

Online Travel Corporation Plc - 020 8255 4441
Mark Jones, Managing Director 
Robert Falkner, Finance Director       

Noble & Company Limited - 020 7367 5600
Chris Barker, Senior Manager  

Durlacher Limited - 020 7459 3600
Mark Perry
                                                  
Buchanan Communications - 020 7466 5000
Nicola How/Isabel Petre                                   


ONLINE TRAVEL CORPORATION PLC
INTERIM TRADING STATEMENT

Online Travel Corporation Plc has made considerable progress during the eight
months to 30 June 2000.  As well as completing a successful flotation on the
Alternative Investment Market during a difficult time for technology stocks,
the Group has also made significant steps forward with improved technology
developed in-house, continued online product enhancements, the development of
our call centres and considerable growth in each of the leisure, corporate and
concession travel divisions. 

Financial Review:

Total gross sales for the Group during the period rose 105.6% including the
acquisition of JVT from £7.3 million in 1999 to £15 million in 2000 and 49%
through organic growth (£7.3 million to £10.7 million). In the three months to
30 June 2000, gross sales in the Group rose 203% to £8.1 million compared to
the same quarter last year (1999: £2.9 million). The online division grew
thirteenfold compared to the same period last year.

In the period under review, OTC achieved overall gross profit margins of over
13% comparing favourably to the industry average and endorsing the Group's
strategy of working with Strategic Partners.

The net loss for the period of £1,756,000 is in line with Directors'
expectations.   Expenditure over the period was made up of:

- £705,000 on web development, product procurement and depreciation,          
  representing planned investment in web technology and the systems           
  infrastructure, plus expanding the online content and product range.
- £995,000 on call centre support and customer relationship management        
  developments as part of its drive to broaden its customer service levels and
  improve conversion rates.
- £620,000 on sales and marketing including partner profit and revenue shares.
- £1,174,000 on general administration and overhead costs including the       
  strengthening of the senior management team and expanding the administration
  and support services to accommodate anticipated growth.

At 30 June 2000, OTC had net assets of £7,988,000 including bank and cash
balances of £5,239,000.  The net cash outflow from operations, excluding
proceeds from investment and associated expenses, was £1,257,000 for the last
quarter to 30 June 2000, of which £383,000 was in June.

Operational Review:

Since its flotation in June, OTC has launched or contracted a total of 14 new
web sites with Strategic Partners.  This takes the total number of sites to
40, which include names such as GMTV, Breathe.net, Fish4.com, RapidoTV,
Rainbownetwork.com, Whatsonwhen.com and Goldfish.com, as well as having
achieved enhanced relationships with FHM.com, Beeb.com, Lineone.com and BT
Internet.   The number of Strategic Partners continues to increase, providing
access at low cost to a large and growing potential user base.

The number of unique users has risen from 198,000 in the quarter to March 31
2000, to 287,000 in the quarter to June 30 2000, an increase of 81.4%. The
average net monthly cost of acquisition per user is 40p, and the average cost
of acquisition per customer (excluding our corporate travel company JVT) is
£12.   This includes profit shares to strategic partners and compares
favourably to the industry average, and is a further endorsement of the
Group's halo branding strategy.

As announced in June of this year we have achieved the first part of our
European expansion plans. This involved a deal with Unison Travel to launch a
new travel service in Ireland.  Unison is the ISP and portal for Internet
Ireland Limited which is owned by Independent News & Media PLC and its 50%
associate, Princes Holdings. As part of the deal, OTC will offer Unison users
and participating newspapers, a range of discounted travel products including
savings of up to 60% on air fares, car hire, holidays and hotels.

On the corporate travel front, OTC has continued to expand this division and
currently has over 200 corporate accounts. The Company has also moved into
group and incentive travel and expects to launch its first online group and
incentive travel service in the next quarter.

Since the end of the period under review, OTC has launched an exclusive online
concessional travel service for 40,000 Preferred Travel Agents of British
Airways (PATC).  This supports OTC's status as leading supplier of trade
concessions, and this Division continues to expand with growth of over 40% on
the same period last year, and the recent addition of four further sites for
the other travel industry clubs, including Travel Agents Travel Club,
Institute of Travel & Tourism and Thomas Cook Staff Travel, has seen
encouraging migration of established and new customers online.  

OTC has continued to build its product base with many new deals with airlines,
hotels and travel suppliers. On 14 August 2000, the Company was appointed
British Airways' first preferred online tour operator and one of seven major
online companies to be granted British Airways' preferred online consolidator
status.  This preferred status re-enforces OTC's position as a leading online
travel player, and allows more control over margin as a principal wholesaler
and tour operator.

Technology Review:

OTC's in-house web development team have rebuilt the site's supporting
architecture to enable features, content and new functionality to be rapidly
rolled out across partners' sites and also across new platforms including iTV,
XML and WAP. This has already resulted in a number of strategic partners, such
as Breathe and LineOne, extending travel services via WAP portals, and a new
contract with mobile phone service provider Digital Mobility and interactive
television services with Telewest in the UK and Unison in Ireland.

The OTC Directors see one of the main challenges for the future as increasing
the conversion of online users to bookers. Further technological enhancements
are necessary to improve the functionality of the websites and customer
service needs to be kept under review in order to provide a comprehensive
e-CRM system to encourage loyalty and repeat bookings. This will be the focus
of OTC's experienced management and the main area of the Group's investment
over the next 12 months and we look forward to reporting positive progress on
all fronts.
  
Mark Jones
Managing Director
OTC
 
29 August 2000


ONLINE TRAVEL CORPORATION PLC
INTERIM TRADING STATEMENT

Pro-forma profit and loss account for eight months to 30th June 2000

                                                  8 months to 30th June
                                                    Pro-forma results
                                                       (Unaudited)
                                                 2000                     1999
                                                £'000                    £'000
                    
Total Gross Sales (including turnover
of joint ventures) (note2)                     15,001                    7,296

Turnover - Continuing activities               10,733                    7,296
         -  Acquisitions (JVT for 3 months)     2,419                        -
      
                                               13,152                    7,296
Cost of sales                                  11,403                    6,180
Gross profit                                    1,749                    1,116

Sales & Website costs                          (2,320)                   (720)
Administration costs                           (1,174)                   (689)
Operating Loss                                 (1,745)                   (293)
Interest payable                                  (11)                    (17)
Group loss on ordinary activities
before taxation                                (1,756)                   (310)
Taxation                                            -                        -
Retained loss for the period                   (1,756)                   (310)
                                  
Loss per share (pence)                          (3.35)                  (0.87)
                    
Fully diluted loss per share (pence)            (3.32)                  (0.87)



ONLINE TRAVEL CORPORATION PLC
INTERIM TRADING STATEMENT
Proforma Balance Sheet at 30 June 2000
 
                                                            as at 30 June 2000
                                                                         £'000
Fixed Assets                                
Intangible assets - Goodwill                                             2,039
                  - Investments                                             40
                  - Tangible assets                                        921

Total Fixed Assets                                                       3,000

Current assets                                             
Debtors                                                                  3,468
Cash at bank and in hand                                                 5,239
                                                                         8,707
Creditors: amounts falling due within one year                         (3,647)
Net current assets                                                       5,060
Creditors: amounts falling due  after one year                            (72)
Net Assets                                                               7,988
                                          
Capital and reserves                                
Called up share capital                                                    685
Capital Reserve                                                          1,728
Share Premium account                                                    7,331
Profit and loss account                                                (1,756)
                                                                         7,988



Notes to the accounts:

OTC was formed on 11 January 2000 and, on 2 March 2000, OTC acquired the whole
of the issued share capital of Online Travel Services Limited ('OTS'), the
principal trading subsidiary of the Group; OTS has traded as a group since 1
November 1998; prior to this acquisition, OTC had not traded.  On 22 March
2000, OTC acquired Joint Venture Travel Limited ('JVT'), an independent
corporate travel company.

The Directors do not believe that the preparation of interim consolidated
financial statements on a statutory basis from the date of OTC's incorporation
would provide a meaningful review of the Group's trading performance. 
Accordingly, the Directors have prepared a pro-forma interim trading statement
for the eight months ended 30 June 2000, incorporating the trading results of
OTS from 1 November 1999, the beginning of its financial year, and the trading
results of JVT from 22 March 2000, the date of its acquisition.

Pro-forma trading results of OTS for the eight months to 30 June 1999 are
provided by way of comparison.

1. The interim financial statements have been prepared on the basis of the
accounting policies set out in the Prospectus.   These statements, which were
approved by the board of directors on the 29th August 2000, are unaudited and
do not constitute statutory accounts as defined in section 240 of the
Companies Act 1985 (as amended).

2. The total gross sales comprise turnover of the Group and 100% of the
turnover of the two associated undertakings, both of which are 50% owned by
OTC.

3. No interim dividend will be made.

4. Earnings per share:  The Basic loss per share has been calculated by
dividing the proforma loss attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue during the period, being
52,425,000(1999: 52,917,000).  For fully diluted loss per share, the weighted
average number of ordinary shares in issue is 35,726,000 (1999: 35,726,000),
adjusted to assume conversion of all dilutive potential ordinary shares.

5. This report is to be sent to shareholders on Wednesday 30 August 2000 and
made available to the public at the registered office of the Company and from
the Company's nominated adviser, Noble & Company Limited, 1 Frederick's Place,
London EC2R 8AB.  Full statutory accounts from the period from incorporation
of OTC Plc on 11 January 2000 to 31 October 2000 are expected to be released
in January 2001.

30 August 2000