800 Travel Systems, Inc. Obtains Working Capital Financing

Press Release: 800 Travel Systems, Inc.
January 14, 2002
TAMPA, FL -- 800 Travel Systems, Inc. (Nasdaq:IFLY; Nasdaq:IFLYW) -- a direct marketer of travel-related products and services through its Websites 800LiveAgent.com, LowAirfare.com, CruiseBrokers.com, TourBrokers.com and its reservation center, Friday announced that it has completed a $500,000 financing transaction with a supplier, through the Company's issuance of a $500,000 secured promissory note and 1.5 million warrants to buy shares of the Company's common stock at an exercise price of $1.00. The note is for a term of five years and bears an interest rate of 2% per annum. No interest or principal payments are due until maturity. Proceeds from the note will be used for working capital and is secured by the Company's accounts receivable. The warrants may be exercised at any time within five years.

About 800 Travel Systems

800 Travel Systems is a direct marketer of low-priced travel related products and services through its nationally recognized LowAirfare.com Website and through its easy to remember toll free numbers, 800-LOW-AIRFARE (800-569-2473) and, 800-FLY-4-LESS (800-359-4537). A distinguishing feature of the LowAirfare.com Website is its ability to connect live reservation agents directly with on-line travel consumers in an instant messaging format that allows consumers to book air travel, on-line, in real time. 800 Travel Systems is headquartered in Tampa, Florida where it operates from a 33,000 square-foot data communications center. The Company also operates CruiseBrokers.com, which specializes in discount cruise vacations; Prestige Travel Club, which offers discount travel services on cruises, tours, air, and other travel related services to individuals, businesses and not-for-profit organizations; and Prestige Travel Systems, which comprises a network of full service independent remote travel agents.

Forward-looking and cautionary statements

This press release contains statements which may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. This press release may include forward-looking statements that do not refer strictly to historical results or actions, which although believed to be reasonable, are inherently uncertain and difficult to predict. Such statements are subject to certain risks and uncertainties inherent in 800 Travel Systems' business and investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those projected as a result of various factors as set forth from time to time in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or revise the forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

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Contact: 

     800 Travel Systems, Inc., Tampa
     Michael Gaggi, 646/365-3300
     IFLYINFO@800TRAVELSYSTEMS.COM