Travelport Limited, the parent company of the Travelport group of companies, announced its financial results for the third quarter ended September 30, 2006. Travelport recognized net revenue for the quarter of $631 million, EBITDA loss of $1.1 billion and a net loss of $1.2 billion. Included in the revenue, EBITDA loss and net loss was a pretax, non-cash write-down of deferred revenue of $38 million due to a purchase accounting charge as well as an additional goodwill impairment charge of approximately $1.2 billion.

Travelport President and CEO, Jeff Clarke, stated: "Travelport continued to gain momentum in the marketplace even as we've developed a new global structure and implemented a comprehensive cost savings program. During the quarter we executed actions under this program that will result in approximately $40 million of annualized run rate cost savings. Additionally, we continued to experience impressive growth in our domestic Business to Consumer brands during the quarter, where our online gross bookings grew by 31%."

Net Revenue from Travelport's Business to Business, or B2B segment, which is primarily comprised of the Galileo and GTA businesses, was $450 million for the third quarter of 2006. Net Revenue included a $12 million reduction in deferred revenue due to purchase accounting adjustments related to the sale. Excluding this adjustment, revenue increased $8 million, or 2%, compared to the third quarter of 2005. Higher revenue resulted from growth in gross bookings in the GTA business and growth in booking revenue from the Galileo GDS system. Excluding the reduction in deferred revenue, Travelport's B2B Segment Adjusted EBITDA for the quarter was $116 million, a reduction of $17 million compared to 2005. Higher revenue was offset by higher inducements paid to travel agencies and other operating expenses. Additionally, 2005 included $7 million of favorable adjustments made to our bad debt provision to more closely reflect historical losses and payment trends, and a reduction of bonus accruals of $11 million.

Net Revenue from Travelport's Business to Consumer, or B2C segment, which is primarily comprised of the online travel brands, was $193 million. Net Revenue included a $26 million non-cash reduction in deferred revenue. Excluding this adjustment, revenue increased $27 million, or 14%, compared to the third quarter of 2005. Higher revenue resulted from higher hotel booking revenue, air booking revenue and dynamic packaging revenue, principally at Orbitz and CheapTickets. Segment Adjusted EBITDA was $13 million, a decrease of $29 million as compared to the prior year quarter. Segment Adjusted EBITDA also includes the $26 million impact of purchase accounting adjustments. Absent this impact, Segment Adjusted EBITDA would have decreased $2 million as compared to the prior year quarter. This decrease is attributable to a $27 million increase in revenue offset by $29 million of increased expenses including increases in cost of revenue and marketing expenses.

In addition, Travelport incurred $9 million of corporate and unallocated expenses, $65 million of separation costs, and $11 million of restructuring costs during the quarter ended September 30, 2006. Excluding these items, Travelport's EBITDA for the quarter ended September 30, 2006 would have been $147 million.

Travelport used $89 million of cash flow from operations during the quarter. At the end of the third quarter, Travelport had $368 million of cash and cash equivalents on hand.