Transat A.T. Inc. is repaid $10.8 million in ABCP securities

    TRZ.B; TRZ.A (TSX)

    MONTREAL, Dec. 24 /CNW Telbec/ - Transat A.T. Inc. announces it has been
repaid $10.8 million out of $11 million face value in non-bank asset-backed
commercial paper (ABCP) securities, following the successful restructuring and
distribution of the assets of Skeena Capital Trust Series A Notes.
    On August 22, Transat announced that it had $154.5 million invested in
10 different ABCP trusts, all impacted by an ongoing disruption of credit
markets. Today's announcement brings the total amount of Transat funds blocked
in ABCP securities to $143.5 million.
    Despite liquidity concerns related to ABCP products, Transat has
sufficient cash available to meet all of its financial, operational and
regulatory obligations. Over 90% of Transat's ABCP investments are in vehicles
whose underlying assets are rated AAA - the highest credit quality - by
Dominion Bond Rating Service (DBRS).

    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: for media representatives: Jean-Michel Laberge,
(514) 908-4499; for 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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