Kuoni Travel

Kuoni Travel (VTX:KUNN) The Kuoni Group raised its third-quarter turnover by 4.0% to CHF 1 547 million in 2008. Earnings before interest and taxes (EBIT) for the period were increased by 8.2% to CHF 105.8 million. As a result, the CHF 3 775 million turnover generated for the first nine months of 2008 was an improvement of 7.4% on the prior-year period. Nine-month EBIT was increased by an even higher 15.7% to CHF 119.7 million. Strategic Business Units (SBUs) Scandinavia, Switzerland and Asia & Destination Management were the prime contributors to the encouraging turnover and earnings rises of the first nine months. At SBU United Kingdom, by contrast, the already-advanced economic crisis and the resulting consumer restraint continued to depress demand. Kuoni further pursued its growth strategy, acquiring Australian Tours Management and UK-based luxury tour operator Carrier in the third-quarter period.

Kuoni Travel (SWF:KUNN) The Kuoni Group continues to pursue its growth strategy. Kuoni has fully acquired Carrier Ltd., the Cheshire (UK)-based tour operator as of 1 October 2008, together with its retail unit (travel agency) Carrier International Ltd. The acquisition further strengthens the Kuoni Group's position in the premium segment: Carrier is one of the UK's leading operators in the luxury travel market.

Kuoni Travel (SWF:KUNN) Kuoni is further expanding its destination management division: the Kuoni Group is to acquire the business activities of Australian Tours Management Pty Ltd., which is domiciled in Melbourne. The transaction will be formally effected on 1 November 2008. Australian Tours Management is active on behalf of foreign tour operators in Australia's destination management market. The new addition to the Kuoni Group extends its destination management presence and activities to Australia, too.

Kuoni Travel (SWF:KUNN) As a part of the Kuoni Group's consolidation of its Internet-based activities, the previously autonomous operations of adventure-travel specialist Shoestring International will be discontinued by the end of 2008. The company's office in Lugano, Switzerland, will be closed and 25 employees will be affected by this strategic decision. Kuoni will assist each of them in seeking new positions within as well as outside the company. This step will have no influence on existing customer bookings and business activities of Shoestring International.

Kuoni Travel (SWF:KUNN) The Kuoni Group looks back on a successful first half of 2008. Turnover rose 9.9% to CHF 2.2 billion. Earnings before interest and taxes (EBIT) rose significantly to CHF 13.9 million (+143.9%). The main contributors to these good results were the Scandinavian and Asian business units, along with Destination Management. The positive turnaround was also confirmed in Switzerland. In the United Kingdom, the travel market continues to be very difficult. Demand in this market has weakened at the same time.

Kuoni Travel The Kuoni Group is disposing of its travel offices in Austria. The 30 outlets currently operated by Reisebüro Kuoni GmbH and Restplatzbörse GmbH are to be taken over by the local management. The corresponding sale agreements were signed today, and the transaction should be formally concluded at the end of July. The disposal of these operations marks a further consistent step in the strategy of maintaining minimal vertical integration within the Kuoni Group.

Kuoni Travel The Kuoni Group is to acquire a 60% shareholding in Direkt Reisen AG, effective July 1. The remaining 40% of the company, which is domiciled near Zurich, Switzerland, will remain in the possession of the founding family and a further shareholder. Direkt Reisen AG is one of Switzerland's leading direct sellers of inclusive-tour products to the Mediterranean, the Caribbean and African and Asian destinations. The acquisition thus further strengthens Kuoni's position in the Swiss direct-sales travel market.

Kuoni Travel Kuoni is pressing ahead with its acquisition strategy. With effect from 1 July 2008, Kuoni Travel Holding Ltd is to acquire together with a local partner an 80% stake in Dubai-based Desert Adventures Tourism. The remaining 20% is being retained by the current managing director. Desert Adventures Tourism is active in destination management in four countries in the region: the United Arab Emirates, Oman, Qatar and Bahrain. With this acquisition, Kuoni continues to build up its position in this important tourism region.

Kuoni Travel Further to a Partial Award by an Arbitral Tribunal in Geneva on February 21, 2008, Hogg Robinson and Kuoni have reached an agreement on all outstanding points of their dispute. They have also agreed not to divulge the details of their settlement.