Business Wire - Volpe Brown Whelan & Company Announces Investment Opinion on Cheap Tickets, Inc

SAN FRANCISCO–(BUSINESS WIRE)–Sept. 28, 1999–

Volpe Brown Whelan & Company Initiates Coverage of

Cheap Tickets, Inc. With a “BUY” Rating

The following is being issued by Volpe Brown Whelan & Company (VBW), a member of the National Association of Securities Dealers, CRD number 18329:

VBW’s Consumer Internet Analyst Derek Brown today initiated coverage of Cheap Tickets (Nasdaq: CTIX) with a BUY rating. Cheap Tickets is the leading provider of discount travel services to consumers.

“We are initiating coverage of Cheap Tickets with a BUY rating because we believe the Company represents an extremely attractive means by which investors can participate in the growth of the online travel services market place,” said Brown. “In addition, the Company’s valuation is appealing and should increase as investors come to recognize the value of the Cheap Tickets franchise and the profit potential of the Company’s business. We see several important drivers of growth and expansion for Cheap Tickets including a growth in user base, gross bookings and online traffic flows through aggressive advertising and promotional efforts,” added Brown. “We believe Cheap Tickets will continue to develop strategic partnerships and expand travel supplier relationships, will look to broaden existing product and service offerings and expand more aggressively overseas, and will grow its business through acquisitions of complementary products and services.”

“Cheap Tickets provides benefits to both consumers as well as airlines and other travel providers. Non-published fares, which accounted for 68% of Cheap Tickets’ total gross bookings in 1H:99, are the critical differentiator to the Cheap Tickets story,” said Brown. “These fares are tickets representing excess capacity that the Company buys from travel suppliers and resells to consumers at prices it designates, typically 10-40% lower than traditional published fares. From a financial perspective, these tickets unburden the Company from inventory carrying costs and provide much greater gross profit potential,” added Brown. “In addition the Company has become an important yield-management tool and incremental profit source for airlines and other travel providers. As a powerful proof statement of Cheap Tickets’ value to travel suppliers, we note that the Company has enjoyed a nearly 100% renewal rate’ of participating carriers.”

Clients interested in receiving more information should contact their Volpe Brown Whelan & Company salesperson at 415/274-4400.

About Volpe Brown Whelan & Company

Volpe Brown Whelan & Company is the leading investment bank focused exclusively on technology and healthcare. Based in San Francisco, VBW’s understanding of the competitive and technical factors that shape its clients’ businesses enable the firm to identify compelling investment opportunities, provide superior research insight, and offer sound strategic and financial advice. Since 1992, VBW has managed or co-managed more than 219 public offerings, raising more than $11.6 billion, and has advised clients on more than 70 merger and acquisition transactions with an aggregate value of more than $8 billion.

The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of Volpe Brown Whelan & Company, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. The research report referred to above contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements.

Factors that might cause such a difference include, but are not limited to, those discussed in “Investment Risks.” Volpe Brown Whelan & Company from time to time performs corporate finance or other services for some companies described in its research reports and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates therein. While the information contained in the report and the opinions contained therein are based on sources believed to be reliable, Volpe Brown Whelan & Company has not independently verified the facts, assumptions and estimates contained in such report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in the report. Volpe Brown Whelan & Company, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while the report is in circulation.