Transat A.T. Inc. - Update on hotel transaction

    TRZ.B; TRZ.A (TSX)

    MONTREAL, Oct. 23 /CNW Telbec/ - Transat A.T. Inc. confirms it has
entered into discussions with hotel companies, which could lead to a $50 to
$60 million transaction in line with Transat's strategic plan, as mentioned in
a media report today. No binding agreement has been signed and there are no
guarantee that a transaction will actually occur.

    Transat A.T. Inc. is an integrated international tour operator with more
than 60 destination countries and that distributes products in over
50 countries. A holiday travel specialist, Transat operates mainly in Canada
and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin.
Montreal-based Transat is also active in air transportation, destination
services and distribution. (TSX: TRZ.B, TRZ.A)

    Caution regarding forward-looking statements

    This news release may contain forward-looking statements regarding,
without limitations, the Corporation's financial, operational and regulatory
obligations, and the risks related to the repayment of asset-backed commercial
paper held by the company. Factors that could lead actual results to differ
materially from those contemplated by the forward-looking statements also
include general economic conditions, competition, extreme weather conditions,
disease outbreaks, war, terrorism, and other risks detailed from time to time
in the Corporation's continuous disclosure documents.
    These forward-looking statements, by their nature, necessarily involve
risks and uncertainties, many of which are beyond the Corporation's control,
that could cause actual results to differ materially from those contemplated
by these forward-looking statements. The Corporation considers the assumptions
on which these forward-looking statements are based to be reasonable, but
cautions the reader that these assumptions regarding future events, many of
which are beyond its control, may ultimately prove to be incorrect since they
are subject to risks and uncertainties that may affect the Corporation. For
additional information with respect to these and other factors, see the Annual
Information Form and Annual Report for the year ended October 31, 2006, filed
with Canadian securities commissions. The Corporation disclaims any intention
or obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, other than
as required by law.
    %SEDAR: 00002758EF

For further information:

For further information: Media representatives: Jean-Michel Laberge,
(514) 908 4499; Financial analysts: François Laurin, Vice-President, Finance
and Administration and Chief Financial Officer, (514) 987 1660; Source:
Transat A.T. Inc.,

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