Sabre Holdings Reports First Quarter 2006 Financial Results

SOUTHLAKE, Texas–(BUSINESS WIRE)–May 4, 2006–Sabre Holdings
Corporation (NYSE:TSG):

    --  1Q 2006 revenue of $700 million, up 20 percent year-over-year

    --  1Q 2006 diluted EPS (Adjusted) of $0.24

    --  1Q 2006 diluted EPS (GAAP) of $0.13

    --  1Q 2006 free cash flow of $85 million; cash flow from
        operations of $113 million

    --  Travelocity revenue and gross travel booked up 59 percent,
        year-over-year

Note: Analyst call today at 9:00 a.m. Central, at
www.sabre-holdings.com/investor/index.html.

Sabre Holdings Corporation (NYSE:TSG) today announced financial
results for the first quarter of 2006.

The company reported revenue for the first quarter of $700
million, up 20 percent, year-over-year. Diluted earnings per share
were $0.24 on an adjusted basis compared to $0.37 in the year ago
quarter. On a GAAP basis, diluted earnings per share were $0.13
compared to $0.44 in the same period last year. As expected, the
year-over-year comparisons include the impact from several factors
including a prior year asset sale, seasonality in Travelocity’s
lastminute.com business, and interest expense and amortization related
to the acquisition of lastminute.com.

“We had a strong start to the year with first quarter earnings at
the high end of our projections and revenue growth of 20 percent
year-over-year,” said Sam Gilliland, Chairman and CEO, Sabre Holdings.
“Across our portfolio, we have made significant progress toward this
year’s operational objectives, including deepening our relationships
with major airlines, hoteliers and marketing partners. We are
optimistic about our growth prospects this year and beyond.”

SABRE HOLDINGS 1Q 2006

FINANCIAL HIGHLIGHTS

(Note: See attached schedules for full financial details,
reconciliations of non-GAAP financial measures, and a description of
adjusting items.)

Revenue: First quarter revenue was $700 million, an increase of 20
percent from $582 million in the year-ago quarter.

Operating income: On an adjusted basis, operating income for the
first quarter was $64 million, compared to $79 million in the year-ago
quarter. Operating income on a GAAP basis was $38 million, compared to
$71 million in 2005.

Net earnings: For the first quarter, net earnings on an adjusted
basis were $32 million, or $0.24 per share, compared to $49 million,
or $0.37 per share in the first quarter of 2005. On a GAAP basis,
first quarter net earnings were $17 million, or $0.13 per share on a
diluted basis, compared to $58 million, or $0.44 per share on a
diluted basis in the year-ago quarter.

Adjusted EBITDA: For the first quarter, adjusted earnings before
interest, taxes, depreciation, and amortization were $89 million.

Cash/Debt: The company balance sheet as of March 31, 2006
reflected cash and marketable securities of $359 million. Total debt
at the end of the quarter was $1.2 billion, which included notes and
bonds payable of $999 million, and a $156 million capital lease
obligation.

    SABRE HOLDINGS BUSINESS REVIEW

    TRAVELOCITY

For the first quarter, Travelocity global gross travel booked was
$2.5 billion, an increase of 59 percent year-over-year. Total global
revenue for the quarter was $234 million, year-over-year growth of 59
percent.

On a geographic basis, gross travel booked and revenue for
Travelocity included the following:

TRAVELOCITY                                                     Y/Y
                                            1Q06      1Q05     Growth
----------------------------------------- --------- -------- ---------
Gross Travel Booked (millions)
----------------------------------------- --------- -------- ---------
   North America (1)                        $1,874   $1,515     24%
----------------------------------------- --------- -------- ---------
   Europe (3)                                 $668      $82     NM
----------------------------------------- --------- -------- ---------
Total Gross Travel Booked                   $2,542   $1,597     59%
----------------------------------------- --------- -------- ---------

----------------------------------------- --------- -------- ---------
Revenue (millions)
----------------------------------------- --------- -------- ---------
    North America (1)                         $167     $142     18%(2)
----------------------------------------- --------- -------- ---------
    Europe (3)                                 $67       $5     NM
----------------------------------------- --------- -------- ---------
Total Revenue                                 $234     $147     59%
----------------------------------------- --------- -------- ---------
    (1) Includes ZUJI results in Asia

    (2) Total transaction revenue growth was 21% in North America

    (3) Includes lastminute.com as of July 2005

    Other Travelocity global metrics for the first quarter:

    --  Total air transaction revenue grew 24 percent

    --  Total non-air transaction revenue grew 90 percent

    --  Total packaging revenue grew 38 percent

    --  Packaging revenue as a percent of total transaction revenue
        was 23 percent

    --  Hotel room nights sold across the Travelocity network were 3.2
        million, growth of 54 percent year-over-year

    SABRE TRAVEL NETWORK

First quarter revenue from the Sabre Travel Network business was
$449 million, an increase of 7 percent from $420 million in the
year-ago quarter. Global transactions in the quarter were 94 million,
growth of 2 percent year-over-year.

SABRE AIRLINE SOLUTIONS

First quarter revenue from Sabre Airline Solutions was $65
million, an increase of 3 percent from $63 million in the year-ago
quarter.

    RECENT BUSINESS HIGHLIGHTS

    --  Signed a new seven-year full content agreement with Delta Air
        Lines to distribute Delta fares through the Sabre Global
        Distribution System (GDS). Delta also signed a new marketing
        agreement with Travelocity including a participation agreement
        with Site59.

    --  Signed five-year full content agreements with United Airlines
        to distribute United fares through the Sabre GDS as well as
        Travelocity and Site59.

    --  Announced a long-term GDS subscriber agreement with
        priceline.com.

    --  Acquired TRAMS, Inc., a leading provider of mid- and
        back-office solutions and unique marketing services for travel
        agencies.

    --  Appointed Ian McCaig as Chief Executive Officer of
        lastminute.com, Travelocity's European online travel and
        leisure group.

    --  Announced that Hilton Hotels Corporation was Travelocity's
        newest supplier of net rate hotel content ensuring
        participating Hilton Family hotels were featured on
        Travelocity's hotel, TotalTrip and Last Minute Packages
        shopping engines.

    --  Announced that Travelocity renewed and expanded its marketing
        partnership for two years with AOL and extended its agreement
        with Yahoo! for an additional year.

    --  Launched a proactive new customer alert system at Travelocity
        that goes beyond air alerts, looking for hotel or other issues
        that might impact travelers, and then giving them the option
        to make changes before their trip.

    --  Signed deals worth $2.5 million with Alitalia to supply the
        Italian flag carrier with Sabre's revenue integrity products,
        as well as its consulting services, to potentially stem
        millions of dollars of revenue leakage each year.

    --  Completed a $400 million offering of 10-year senior unsecured
        notes. The notes will pay a coupon of 6.35% and were priced at
        a yield of 6.40%.

    --  Declared a quarterly cash dividend of $0.10 per share payable
        on May 25, 2006, to shareholders of record at the close of
        regular trading on the New York Stock Exchange on May 11,
        2006.

    SABRE HOLDINGS OUTLOOK

    2Q 2006

For the second quarter of 2006, the company projects revenue to be
in the range of $710 million to $740 million. Diluted earnings per
share are projected to be in the range of $0.38 to $0.43 on an
adjusted basis, and $0.25 to $0.30 on a GAAP basis.

    Full-Year 2006

    - Year-over-year revenue growth of approximately 15 percent

    - Diluted earnings per share of $1.70 to $1.77 on an adjusted
      basis, and $1.19 to $1.26 on a GAAP basis

    - Adjusted EBITDA greater than $500 million, growth of more than
      25 percent

    - GAAP net income of approximately $160 million

    - Free cash flow greater than $300 million and cash flow from
      operations greater than $425 million

    About Sabre Holdings

Sabre Holdings connects people with the world’s greatest travel
possibilities by retailing travel products and providing distribution
and technology solutions for the travel industry. Sabre Holdings
supports travelers, travel agents, corporations, government agencies
and travel suppliers through its companies: Travelocity, Sabre Travel
Network and Sabre Airline Solutions. Headquartered in Southlake,
Texas, the company has approximately 9,000 employees in 45 countries.
Full-year 2005 revenues totaled $2.5 billion. Sabre Holdings, an S&P
500 company, is traded on the NYSE under the symbol TSG. More
information is available at http://www.sabre-holdings.com.

Statements in this release which are not purely historical facts
or which necessarily depend upon future events, including statements
about forecasted financial performance or other statements about
anticipations, beliefs, expectations, hopes, intentions or strategies
for the future, may be forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended.
Readers are cautioned not to place undue reliance on forward-looking
statements. All forward-looking statements are based upon information
available to Sabre Holdings Corporation on the date this report was
submitted. Sabre Holdings Corporation undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Any
forward-looking statements involve risks and uncertainties that could
cause actual events or results to differ materially from the events or
results described in the forward-looking statements, including risks
or uncertainties related to Sabre Holdings Corporation revenues being
subject to adverse changes to our travel supplier relationships and
potential substantial decreases in travel transaction volumes. Sabre
Holdings Corporation may not succeed in addressing these and other
risks. Further information regarding factors that could affect our
financial and other results can be found in the risk factors section
of Sabre Holdings Corporation’s most recent filing on Form 10-K with
the Securities and Exchange Commission.


Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Unadjusted
(Unaudited - In millions except per share amounts)

                                                Three months ended
                                                     March 31,
                                              2006    2005   Change(1)
                                             -------- ------ ---------

Revenues
   Sabre Travel Network                        448.5  419.8       6.8%
   Travelocity                                 234.4  147.1      59.4%
   Sabre Airline Solutions                      64.8   62.8       3.3%
   Elimination of intersegment revenues        (47.6) (47.8)    (0.4%)
                                             -------- ------
   Total revenues                              700.2  581.9      20.3%

Operating expenses                             662.3  510.7      29.7%
                                             -------- ------

Operating income                                37.9   71.2    (46.7%)

Other income (expense)
   Interest income (expense) net               (15.8)  (3.2)    386.3%
   Other, net                                    2.1   20.4    (89.7%)

Minority interest                                2.5    0.8     226.4%
                                             -------- ------

Income before provision for income taxes        26.7   89.2    (70.0%)

Provision for income taxes                       9.9   31.5    (68.5%)
                                             -------- ------


Net earnings                                    16.8   57.7    (70.9%)
                                             ======== ======

Operating Margin                                 5.4%  12.2%

Earnings per share- basic                      $0.13  $0.44

Earnings per share- diluted                    $0.13  $0.44

Weighted average shares -basic                 130.3  130.3
Weighted average shares -diluted               132.6  130.8


(1) Percents shown reflect changes in unrounded figures and may not
    agree to the percent changes in figures after rounding.


Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(Unaudited - In millions except per share amounts)


                                                Three months ended
                                                     March 31,
                                               2006    2005  Change(1)
                                             ------- ------- ---------

Revenues
    Sabre Travel Network                      448.5   419.8       6.8%
    Travelocity                               234.4   147.1      59.4%
    Sabre Airline Solutions                    64.8    62.8       3.3%
    Elimination of intersegment revenues      (47.6)  (47.8)    (0.4%)
                                             ------- -------
    Total revenues                            700.2   581.9      20.3%

Operating expenses                            635.8   502.5      26.5%
                                             ------- -------

Operating income                               64.4    79.4    (18.9%)

Other income (expense)
    Interest income (expense) net             (15.8)   (3.2)    386.3%
    Other, net                                  0.3    (0.2)       --

Minority interest                               1.8    (0.4)       --
                                             ------- -------

Income before provision for income taxes       50.7    75.6    (32.9%)

Provision for income taxes                     18.5    26.8    (30.9%)
                                             ------- -------


Net earnings                                   32.2    48.8    (34.0%)
                                             ======= =======

Operating margin                                9.2%   13.7%

Earnings per share- basic                     $0.25   $0.37

Earnings per share- diluted                   $0.24   $0.37

Weighted average shares -basic                130.3   130.3
Weighted average shares -diluted              132.6   130.8


(1) Percents shown reflect changes in unrounded figures and may not
    agree to the percent changes in figures after rounding.


Sabre Holdings Corporation
Reconciliation of Unadjusted Results to Adjusted Results
Three Months ended March 31, 2006
(Unaudited, in millions)

                                                Three months ended
                                                     March 31,
                                               2006    2005  Change(1)
                                             ------- ------- ---------

Unadjusted operating income                   $37.9   $71.2    (46.7%)
Adjusting items:
  Travelocity intangible amortization and
   stock compensation                         $16.8    $2.5     584.7%
  Travel Network intangible amortization and
   stock compensation                          $7.8    $5.2      49.2%
  Airline Solutions intangible amortization
   and stock compensation                      $1.9    $0.6     235.1%

                                             ------- -------
Adjusted operating income                     $64.4   $79.4    (18.9%)

Unadjusted other income (loss) and minority
 interest                                    ($11.2)  $18.0   (162.4%)
Adjusting items:
  Forfeitures related to adoption of FAS
   123R                                       ($1.8)   $0.0        --
  Realized gain on sale of Karavel
   investment                                  $0.0  ($20.6)       --
  Impact of adjusting items on minority
   interests                                  ($0.7)  ($1.2)   (41.4%)

Adjusted income before provision for income
 taxes                                        $50.7   $75.6    (32.9%)

Unadjusted provision for income taxes          $9.9   $31.5    (68.5%)
Adjustments to taxes for adjusting items       $8.6   ($4.6)       --
                                             ------- -------
Adjusted provision for income taxes           $18.5   $26.8    (30.9%)

Adjusted net earnings                         $32.2   $48.8    (34.0%)
                                             ======= =======


(1) Percents shown reflect changes in unrounded figures and may not
    agree to the percent changes in figures after rounding.



  Sabre Holdings Corporation
  Sabre Travel Network
  Transactions Summary
  (millions)

                                             ------- ------- ---------
                                               1Q06   1Q05   % Change
                                             ------- ------- ---------

  Transactions                                 94.2    92.0       2.4%

  Geographic
     US                                        60.1    58.8       2.2%
     International                             34.1    33.2       2.8%
                                              ------ -------
                                               94.2    92.0       2.4%

  Channel
     Traditional Agency                        82.3    80.7       1.9%
     Consumer on-line                          12.0    11.3       5.9%
                                              ------ -------
                                               94.2    92.0       2.4%

  Air/Non-Air
    Air                                        81.6    79.7       2.3%
    Non-Air                                    12.7    12.3       3.1%
                                              ------ -------
                                               94.2    92.0       2.4%


Note: As of Q1 2005, we are counting as a transaction, any travel
reservation that generates a fee paid directly to us including, but
not limited to the following: traditional booking fees paid by
suppliers, non-traditional transaction fees paid by suppliers,
transaction fees paid by travel agencies, and transaction fees paid by
corporations related to our online booking tool.

Updated historical quarterly transaction information available on
www.sabre-holdings.com/investor/highlights/statistics/historical.html



 Operating Income Reconciliations

 Sabre Holdings
                                               1Q 2006      1Q 2005
                                             ----------- -------------
 GAAP Operating Income                            $37.9         $71.2
      GAAP Operating Margin                         5.4%         12.2%

 Add: amortization of intangibles                  18.4           7.8
 Add: stock compensation - employee stock
  options                                           4.5           0.5
 Add: stock compensation - restricted stock
  and performance shares                            3.6            --

                                             ----------- -------------
 Adjusted Operating Income                        $64.4         $79.4
      Adjusted Operating Margin                     9.2%         13.7%


 Net Earnings Reconciliation
                                               1Q 2006      1Q 2005
                                             ----------- -------------

 GAAP Net Earnings                                $16.8         $57.7
 Adjustments, net of taxes:
 Add: amortization of intangibles and stock
  compensation                                     16.5           4.5
 Less: forfeiture on adoption of FAS123R           (1.2)           --
 Less: realized gain on sale of investment
  in Karavel                                         --         (13.4)

                                             ----------- -------------
 Adjusted Net Earnings                            $32.2         $48.8

 GAAP EPS                                         $0.13         $0.44
 Adjusted EPS                                     $0.24         $0.37

 Diluted share count                              132.6  130.8 million


 Adjusted EBITDA Reconciliation
                                               1Q 2006      1Q 2005
                                             ----------- -------------

 GAAP Net Earnings                                $16.8         $57.7
 Add: taxes                                         9.9          31.5
 Add: interest expense (income), net               15.8           3.2
 Less: other, net (including forfeiture on
  adoption of FAS123R)                             (2.1)           --
 Less: other, net (realized gain on sale of
  investment in Karavel)                             --         (20.4)
 Less: minority interest                           (2.5)         (0.8)
 Add: depreciation & amortization                  43.1          27.1
 Add: stock compensation                            8.1            --

                                             ----------- -------------
 Adjusted EBITDA                                  $89.1         $98.3


 Free Cash Flow Reconciliation                 1Q 2006
                                             -----------

 Cash Provided by Operating Activities           $112.7

 Less: capital expenditures                       (27.6)

                                             -----------
 Free Cash Flow                                   $85.1


          2006 Guidance
 -------------------------------

 Net Earnings Reconciliation      2Q 2006 Guidance   FY 2006 Guidance
                                 ------------------ ------------------
                                   Low      High       Low      High
                                 ------- ---------- ---------- -------

 GAAP Net Earnings                $32.6      $39.2     $158.6  $167.9
 Adjustments, net of taxes:
 Add: amortization of
  intangibles and stock
  compensation                     17.8       17.8       69.4    69.4
 Less: other, net (including
  forfeiture on adoption of
  FAS123R)                           --         --       (1.2)   (1.2)

                                 ------- ---------- ---------- -------

 Adjusted Net Earnings            $50.4      $57.0     $226.8  $236.2

 GAAP EPS                         $0.25      $0.30      $1.19   $1.26
 Adjusted EPS                     $0.38      $0.43      $1.70   $1.77

 Diluted share count              132.6  million        133.3  million


 Adjusted EBITDA Reconciliation                      FY 2006 Guidance
                                                    ------------------
                                                       Low      High
                                                    ---------- -------

 GAAP Net Earnings                                     $158.6  $167.9
 Add: taxes                                              85.4    90.4
 Add: interest expense (income),
  net                                                    59.9    59.9
 Less: other, net (including
  forfeiture on adoption of
  FAS123R)                                               (2.1)   (2.1)
 Less: minority interest                                 (1.4)   (1.4)
 Add: depreciation &
  amortization                                          184.9   184.9
 Add: stock compensation                                 40.8    40.8

                                                    ---------- -------
 Adjusted EBITDA                                       $526.1  $540.5

                                                     FY 2006 Guidance
                                                    ------------------
                                                       Low      High
                                                    ---------- -------
 Free Cash Flow Reconciliation

 Cash Provided by Operating
  Activities                                           $425.0  $450.0

 Less: capital expenditures                            (125.0) (115.0)

                                                    ---------- -------
 Free Cash Flow                                        $300.0  $335.0

    CONTACT: Sabre Holdings Corporation, Southlake
             Media Contact:
             Michael Berman, 682-605-2397
             michael.berman@sabre-holdings.com
             or
             Investor Relations Contact:
             Karen Fugate, 682-605-2343
             karen.fugate@sabre-holdings.com

    SOURCE: Sabre Holdings Corporation