Preliminary Results

Online Travel Corporation PLC
18 January 2001

   Online Travel Corporation Plc - Preliminary Statement for the Year to 
                              31 October 2000


Chairman's Statement

The year 2000 can best be characterized as a year of tremendous growth, as we
began to leverage our technology and business systems to attain the critical
mass that will allow us to add incremental value for our shareholders,
business partners, and our employees.

Almost one year ago, OTC reinvented the online travel industry by embarking on
a strategy which could achieve profitability in the online travel business, by
leveraging the brand equity of larger and well established companies seeking
to provide travel services to their clients. In less than twelve months OTC
now powers, or has strategic partnerships with, over 50 travel sites for media
groups, portals and large corporate or affinity groups.

Since 31st October 2000, OTC's distribution network has been extended into
Ireland and Australia. The recent launch of a new holiday channel in the UK
for Expedia - the world's largest online travel agency - is further testimony
to OTC's integrated technology, content and full-service travel offering.

Turnover for the eight month period to 31 October 2000 was £18.2 million, with
losses before taxation of £2.5m, in line with expectations. However, as
explained in Note 6 to this statement, the operating subsidiaries of OTC were
acquired in March 2000.  To give a truer picture of OTC's trading, it is more
realistic to review the pro-forma twelve-month results to 31 October 2000, as
if OTC's constituent parts had formed a single trading entity through out the
period.  On a pro-forma basis, gross sales for the year were £33.3m and
pro-forma losses before taxation for the year of £2.9m.

Our travel divisions have achieved considerable growth with pro-forma gross
sales of £32.2m in the year to 31 October 2000 (1999: £20.1m). The Group also
generated £1.1m (1999: £0.5m) in revenue streams from memberships, insurance,
advertising, license and design fees. OTC has grown to be one of the top
travel sites in the UK, while spending less than £0.5m in online marketing
during the year.

OTC's strategy has now been validated and recognized throughout the industry
and we expect further considerable growth in travel revenues and an increase
in incremental revenue streams from licensing and design fees.

The Group's successes would not be possible without the dedication and
'can-do' approach of our employees and the continued management talent we have
recruited to guide our rapid growth and path to profitability. We have
considerably strengthened the management team during the period.

Alan Judd
Chairman


Major Strides in OTC's Business Model

* Pro-forma gross sales for the year of £33.3m

* Pro-forma turnover from membership, insurance, advertising & licensing of     
  £1.1m

* Net loss in the 8 month period of £2.5m, with a pro-forma net loss
  for the year of £2.9m

* 76% growth in gross sales for the last quarter to £10.4m  (1999: £
  5.9m)

* 547,000 unique users in the last quarter, an 87% increase over the
  previous quarter

* Annual acquisition cost of 38 pence per unique monthly user, 35
  pence in the last quarter

* Annual customer acquisition cost of £8.40 (UK industry average £51.40)

* Overall gross profit margins of almost 13% on gross sales achieved
  for the period

* Fifty websites launched, six of which are for strategic partners each with 1m+
  user base

* Successful expansion into Europe and Australia

* Over 300 active corporate accounts in the corporate travel division

* £6.6 million in net assets at 31 October 2000





Operational Review

During the year, we successfully validated our business model and established
ourselves as a leading travel enabler in the UK. The combination of OTC's
travel technology and product proposition allows large media and corporate
organisations to provide their customers with a full-service travel channel in
their own brand, integrating travel product and content specifically geared to
their user profile.

This strategy gives OTC cost effective access to significant groups of
customers, without the need to expend vast amounts on marketing or building a
direct consumer brand. OTC's user acquisition costs have dropped during the
year to less than 35 pence per unique user. This is a significant milestone in
our focus to achieve profitability. OTC's customer acquisition costs have
fallen to just over £8 per sales transaction, again significantly lower than
the UK industry average of over £51 per transaction or ticket. OTC's overall
spend of less than £0.5m in online advertising or marketing, has demonstrated
OTC's ability to achieve growth in online transactions in a cost effective
manner. OTC's business model continues to set us apart from that of other
online travel operators and traditional travel organizations.

OTC operates across two divisions: the Travel Division and the Technology and
New Media Division.  The Travel Division encompasses three sectors: leisure
travel, corporate travel and travel staff concessions. Our Technology Division
has to date been designed to support each of our three travel sectors, however
recent enhancements have created opportunities to leverage our technology
investment by licensing to other travel operators in the UK and overseas.

The Group has successfully enhanced its proprietary systems technology and
architecture. We have designed and successfully deployed middleware around
core CRS (Computer Reservation Systems) technology and have been the first to
develop an XML booking engine with a variety of travel providers, including
the world's largest online travel supplier, Worldspan.



Major Strides in the Travel Division

During the year pro-forma travel turnover increased to £32.2m with 128,370
travel transactions, of which 29,570 were initiated online or via e-mail. The
last quarter to 31 October 2000 generated £10.1m of turnover from 40,490
transactions with 13,910 initiated online or via e-mail.

OTC has continued to build its product base with many new deals with airlines,
hotels and travel suppliers. OTC 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 margins as a principal wholesaler and tour operator.

i. Leisure Travel

OTC now powers, or has strategic partnerships with over 40 leisure travel
sites for media groups, portals and large affinity groups. We have recently
launched a new holiday channel for Expedia.co.uk, part of the world's largest
online travel agency. This will focus on our high margin bespoke package
holidays and we expect this to generate significant growth in online holiday
bookings.

During the year, pro-forma leisure turnover has grown considerably, with gross
pro-forma sales for the year of over £8.9m (1999: £4.1m), and £2.9m in the
last quarter to 31 October 2000 (1999: £1.3m).

With several sites, including Expedia.co.uk, launched since the year end,
enhanced relationships with our larger partners such as Freeserve, BTInternet,
Virgin.net and LineOne, and new sites with media groups such as Telegraph,
Yell and Zoom to be launched shortly, we expect the considerable growth in
this sector to continue. We expect a growth in our customer base from more
partners, an increased conversion rate from improved user experience and CRM,
and an increase in average sales value and margin from the new bespoke package
tour module.

ii. Corporate Travel

OTC provides the corporate travel market with a multi-channel travel
management solution, plus a strong proposition to cross-sell the higher margin
leisure travel to employees via their corporate intranets. Our corporate
services division has grown to over 300 small or medium sized accounts.

We are due to launch new services for several corporate groups, such as the
Medical Research Councils and a new site to manage and book group and
incentive travel, offering online facilities for over 300 conferences
throughout the world.

Pro-forma gross corporate sales for the year grew to £15.4m (1999: £9.1m),
including joint ventures, with £4.6m in the last quarter to 31 October 2000
(1999: £2.9m).


iii. Concession Travel

OTC now ranks among the largest providers of travel services to the travel
trade, leveraging our core infrastructure in order to provide seamless travel
services to employees at some of the UK's largest and most important travel
providers. OTC now has five dedicated websites for the travel trade, with a
database of 70,000 travel industry employees, the majority of whom pay us an
annual membership fee.

The launch of an exclusive online service for preferred agents of British
Airways in the latter part of the year and the extention of our contract to
provide Thomas Cook staff a full travel service facility has enabled us to
consolidate our position.

OTC expects to launch new and enhanced sites early in the second quarter to
further strengthen our position. Pro-forma concession travel sales for the
year grew to £7.9m (1999: £6.4m), with £2.6m in the last quarter to 31 October
2000 (1999: £1.6m).



Outlook

OTC's business strategy supported by our proprietary technology has given us a
distinct competitive advantage in each of the travel sectors in which we
operate. OTC will continue to focus on growing our strategic partner and
customer base, by enhancing relationships with existing partners, launching
new services and growing the travel transaction business. OTC's user and
customer acquisition costs continue to decline whilst our average sales value
and margins increase. We believe this gives us the opportunity for cost
effective and sustainable growth.

There are an increasing number of opportunities to license OTC's technology
and content and we will consider these and other incremental revenue streams
from licensing, memberships and data management that fit within our business
strategy and can contribute long term shareholder value.

Overseas, we intend to apply our strategy to combine local distribution via
media groups and portals with our integrated travel technology and content,
either by the acquisition of a local travel company (as we have done in
Ireland and Australia), or by appointing local travel providers on a franchise
or license basis.

The travel market in Europe is fragmented and we see opportunities to
consolidate by acquisition in both online travel and traditional travel
business in each sector.


ONLINE TRAVEL CORPORATION PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the 8 month period ended 31 October 2000


                                                        2000               2000
                                                       £'000              £'000
                                                   (audited)          (audited)
Turnover                                                                 20,702

Group and share of associates
Turnover (excluding share of associates)                                 

Continuing                                                               12,595 
Acquisitions                                                              5,624
                                                                         18,219
Cost of sales                                                          (15,715)
Gross profit                                                              2,504

Selling and distribution costs                                          (2,688)
Administration costs                                                    (2,617)
Other operating income                                                      263

Operation (loss)/profit                              
Continuing                                           (2,747)
Acquisitions                                             209

                                                                        (2,538)

Interest receivable                                                          73

Interest payable                                                           (23)

Group loss on ordinary activities before                                (2,488)
taxation

Taxation                                                                      -

Retained loss for the financial period/year                             (2,488)

Loss per share                                                            Pence

- basic                                                                   (3.9)

- fully diluted                                                           (3.4)




ONLINE TRAVEL CORPORATION PLC

GROUP BALANCE SHEET
As at 31 October 2000




                                                     2000                  2000
                                                    £'000                 £'000
                                                (audited)             (audited)
Fixed assets

Intangible assets - goodwill                                              2,039
Tangible assets                                                           1,172
Investment in Associated Companies                                           40
                                                                          3,251


Current assets
Debtors                                             3,802
Cash at bank and in hand                            3,336
                                                    7,138
Creditors: amounts falling due
within one year                                   (3,752)

Net current liabilities                                                   3,386
                                                                          6,637
Creditors: amounts falling due after
One year                                                                    (4)
                                                                          6,633


Capital and reserves (equity)

                                                                            

Called up share capital                                                     686
Share premium account                                                     6,936
Capital reserve                                                           1,499
Profit and loss account - deficit                                       (2,488)
Shareholders' funds                                                       6,633





The financial statements were approved by the Board on 17 January 2001.


Notes:


1.   The accounts are prepared in accordance with applicable accounting
policies and under the historical cost convention.

2.  The audited preliminary results for the year ended 31 October 2000 are an
    extract from the latest published audited accounts and do not constitute
    statutory accounts as defined in Section 240 of the Companies Act (as
    amended).  The published audited accounts will be delivered to the
    Registrar of Companies and include a report from the auditors that was
    unqualified.


3. The Directors do not propose to pay a dividend at this time.


 4. Basic earnings/(loss) per share has been calculated on the following basis:


            Earnings/(loss) per share                              Period ended
                                                                31 October 2000
            Attributable profit/(loss) (£'000)
                                                                        (2,488)
            Average number of ordinary shares in issue ('000)       63,208,855
            Average number of ordinary shares in issue and
            over which options have been granted                    72,242,845

                                                                     
            Basic earnings (loss) per share (pence)                      (3.9)p
                                                                         
            Fully diluted earnings (loss) per share (pence)              (3.4)p
                                                                         
The fully diluted earnings (loss) per share takes account of outstanding share
options and warrants.



5.  A copy of the audited results for the year ended 31 October 2000 is due to
    be sent to all shareholders on or about 16 February 2001.  Copies of this
    announcement and the audited accounts will be available, free of charge,
    from the company's Nominated Adviser:



Noble & Company Limited
1 Frederick's Place
London EC2R 8AB



6.   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. The consolidated profit and loss
account for the 8 months period ended 31 October 2000 reflects the Group's
trading activity from 2nd March 2000. This does not fully reflect the Group's
underlying actual trading activity for the year ended on 31 October 2000.
Accordingly 'pro-forma' amounts refer to total group trading for the year
ended 31 October 2000, as if all acquisitions had taken place on 1st November
1999, and include the turnover of associated companies.



Pro-forma gross profit for the year amounted to £4.0m.  Pro-forma expenditure
of £6.9m over the year was made up of:



* £1.3m on web development, systems infrastructure and online content
  and product

* £1.8m on call centre support and customer relationship management

* £1.3m on sales and marketing including partner profit and revenue shares

* £2.5m on administration and support services, including the
strengthening of the senior management team and supporting infrastructure to
support anticipated growth.

Pro-forma net loss before taxation for the year was £2.9m.


For further information, please contact:

OTC:                                              Tel [phone]
Mark Jones, Managing Director
Robert Falkner, Finance Director


Durlacher Corporation Plc:                        Tel [phone]
Peter Redmond
Dru Edmonstone


Noble & Company Limited                           Tel [phone]
Chris Barker, Senior Manager

Buchanan Communications                           Tel [phone]
Nicola How / Isabel Petre


Expedia:                                          Tel [phone]
Giles Read / Emma Foster, The RED Consultancy
E: [e-mail]



18 January 2001



END