Europ@Web Makes $20 Million Strategic Investment in
Leisureplanet
-- Premier Global Internet Investor Acquires Approximately 27% of Leading
International Online Travel Services Company --
PARIS & NEW YORK--(BUSINESS WIRE)--Dec. 6, 1999-- Europ@Web, the Internet investment arm of the Arnault Group, and Leisureplanet
(www.leisureplanet.com; ``Leisureplanet'), a leading international Internet-based travel services provider that is majority owned by Leisureplanet
Holdings, Ltd. (Nasdaq: LPHL - news; ``LPHL'), today announced that Europ@Web has made a direct investment of $20 million to acquire a
27% equity stake in Leisureplanet.
Commenting on the agreement, Chahram Becharat, Managing Director Europe for Europ@Web, said: ``Travel is one of the largest industries in the
world and one that is most suited to Internet transactions. Travel was the third-largest commerce category in 1998 and is forecast to be close to the
number-one position this year, with more than $7 billion in transactions. We are very happy to be investing in Leisureplanet, which we feel is one of
the very few players based in Europe capable of becoming a worldwide leader of online travel.'
Clive Kabatznik and Pierre Kleinhans, CEOs of LPHL and Leisureplanet, respectively, added: ``We are proud to welcome Europ@Web, one of
the most prestigious global Internet investors, as a major shareholder of Leisureplanet. This investment provides us with a strategic shareholder that
can add tremendous value to Leisureplanet and moves us closer to our goal to establish Leisureplanet as the leading web-based travel services
provider. Moreover, we believe that Europ@Web's selection of Leisureplanet as the vehicle through which to access the exciting online travel
services market validates the quality of the Leisureplanet vision, management team and strategic business plan.'
As part of the transaction, LPHL will have the right to invest an additional $10 million into Leisureplanet, at the same valuation as the Europ@Web
investment, on or before January 31, 2000.
Leisureplanet
Leisureplanet is a leading international leisure travel e-commerce company, providing travel booking and customer services to on line consumers
through its own web sites, partner sites and international media companies including Yahoo!, Lycos and InfoSpace. The service features the world's
largest image-rich hotel database; flight, car and hotel reservation facilities; package holidays and cruises; and comprehensive proprietary travel
guides on more than 180 travel destinations.
Leisureplanet has distributed services to international localized web sites supported by local customer service agents throughout Europe and other
international markets. Each local web site provides a comprehensive selection of competitively priced travel products for local consumers, presented
in the local language.
Leisureplanet has contracts with more than 16,000 independent hotels that offer their services through Leisureplanet. These hotels are not affiliated
with hotel groups and offer their own individual style and service. Customers can make informed decisions when booking on Leisureplanet, as they
are presented with five pictures of each hotel. The independent hotels are well-suited to leisure travelers.
Travel services bookable on Leisureplanet sites include approximately 49,000 hotels of which 16,000 are independents, 44 car rental companies,
455 airlines and 8 cruise lines. Visual data on Leisureplanet web sites include approximately 60,000 hotel photographs, 14 web cams, 180
destination slide shows and 35,000 visuals related to last minute offers (to be added soon).
Leisureplanet is majority-owned by Leisureplanet Holdings, Ltd. (Nasdaq: LPHL - news), a publicly traded investment company whose holdings
also include businesses in various industries, including value-added convenience foods and leisure products.
Europ@Web
Europ@Web is the Internet investment arm of the family holding company of Bernard Arnault. With 500 million euros at its disposal, Europ@Web's
investment strategy is to take majority or minority stakes in Internet-related companies with strong growth potential in either the United States or
Europe. Europ@Web has already invested in LibertySurf in Europe, and also in Webvan, 1-800 Flowers, and PlanetRx in the US.
The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties
including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new
products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes,
the effect of economic conditions and other uncertainties detailed in Leisureplanet Holdings, Ltd.'s filings with the Securities and Exchange
Commission.
Contact:
Europ@Web:
France
DGM
Michel Calzaroni / Olivier Labesse
+33 1 40 70 11 89
or
UK
Financial Dynamics
Hugh Morrison
+44 171 831 3113
or
US
Kekst and Company
James Fingeroth / Michael Freitag
+1 212 521 4800
or
Leisureplanet:
Mark Semer or Roy Winnick
Kekst and Company
+1 212 521 4802
+1 212 521 4842
or
Dagny Mjos
Leisureplanet
+32 16 384 777
dagnym@leisureplanet.com |
