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Travelzest plc, the British on-line travel group offering specialist travel programmes, announces that it has raised approximately £1.5 million before expenses through the issue of 1,060,000 new ordinary shares of 2 pence each ( "New Ordinary Shares") to institutional and other investors at a price of 145 pence ( "the "Placing Price") per New Ordinary Share (the "Placing"). The Placing has not been underwritten and is conditional on the admission of the New Ordinary Shares to trading on AIM ( "Admission").

The New Ordinary Shares will represent approximately 6.1 per cent. of the enlarged issued ordinary share capital of the Company. The Placing Price represents a discount of 10.2 per cent. to the closing mid-market price of 161.5 pence as at 31 July 2007. The New Ordinary Shares will rank pari passu with existing ordinary shares of 2 pence each.

The number of ordinary shares in issue immediately following Admission will be 17,489,274 ordinary shares. In addition, as part of the acquisition of itravel2000.com, the Canadian on-line travel agent specialising in the sale of travel and travel related products, has 8,065,327 shares in issue which may be exchanged for the issue of 8,065,327 ordinary shares in the Company at any time.

Application has been made to the AIM Market of the London Stock Exchange for the New Ordinary Shares to be admitted to trading. It is expected that Admission of the New Ordinary Shares will become effective and that dealings will commence at 8.00am on 6 August 2007.

The Company intends to use the proceeds of the Placing to continue its strategy of the acquisition of niche travel operators as the opportunities arise. Travelzest plc is building a portfolio of companies offering travel and holiday experiences which use the internet as a key distribution channel.

Commenting on the Placing, Chris Mottershead, Chief Executive of Travelzest said:

"We are delighted to have completed this fundraising, which continues to demonstrate the strong support of our shareholders and will give Travelzest greater flexibility when looking at future corporate opportunities.

"Travelzest's strategy of targeting niche travel operators and developing the proposition through both operational and distribution enhancements is evidenced by the results we have achieved with the current portfolio and we look forward to the future with confidence."

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