Transat A.T. Inc. completes transaction with H10 Hotels, creates 5-hotel joint venture in Mexico, Dominican Republic

    MONTREAL, Dec. 10 /CNW Telbec/ - Transat A.T. Inc., one of the largest
integrated tourism companies in the world and Canada's holiday travel leader,
and H10 Hotels, based in Barcelona, (Spain) have now completed the transaction
leading to the creation of a joint venture to own and operate five existing
hotels in Mexico and Dominican Republic, following an announcement made on
November 27, 2007. Closing conditions have been met. H10 Hotels retains a 65%
interest in the new company, while Transat acquired the remaining 35% (with an
option to go to 45% within five years of closing) by contributing to the joint
venture through a capital increase representing a consideration of US$55
million in cash.
    In the Riviera Maya, Mexico, holdings include the H10 Hacienda Maya 
(320 rooms), the H10 Punta Coral and H10 Punta Turquesa (586 rooms in total,
to open in December 2007), and in Punta Cana, Dominican Republic, the joint
venture will offer the H10 Ocean Blue and H10 Ocean Sand (708 rooms in total),
for a combined total of more than 1,600 rooms. All hotels are beachfront,
high-quality properties.
    "Having a dynamic presence in the hotel business at our key destinations
and teaming up with one of the best hotel companies in the world was among our
top priorities," said Jean-Marc Eustache, one of the founders, and President
and Chief Executive Officer, of Transat A.T. Inc. "This joint venture is what
we were looking for. It allows us to secure a number of quality hotel rooms
and maximize the gains we derive from being vertically integrated."

    About H10 Hotels

    H10 Hotels was founded at the beginning of the '80s in Barcelona, Spain,
and operates 40 hotels in 14 destinations, for a total of more than 11,000
rooms, most of which it owns. One of the top 10 hotel companies in Spain, H10
Hotels plans to grow further in the Caribbean and Europe. H10 Hotels'
commitment is to offer its clientele exceptional locations, specialized
services, a carefully selected cuisine and facilities constantly updated to
guarantee the highest quality.

    About Transat

    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 by Transat

    This news release may contain forward-looking statements. Factors that
could lead actual results to differ materially from those contemplated by the
forward-looking statements 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
    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: Transat A.T. Inc., Jean-Michel Laberge, (514)
908-4499; Source: Transat A.T. Inc., www.

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