Transat A.T. Inc. announces that it will redeem debentures in the amount of $21.9 million as at January 10, 2005. They have a maturity date of January 2009 and are redeemable in advance as of January 2005.

The cash outlay will be approximately $30.0 million, including unpaid interest already reflected in Transat’s books in the amount of $7.3 million and an interest penalty in the amount of $0.8 million that will be recorded in the first quarter of fiscal 2005. Additionally, this early redemption will also result in a non-cash charge in the amount of $1.7 million that will also be recorded in the first quarter of fiscal 2005 related to the difference between the nominal value and book value of the debentures as at January 10, 2005. The debentures, which are non-convertible, were issued on January 10, 2002 to certain shareholders and management members.

“These debentures were issued in the wake of the September 2001 crisis and have been key to the continuity of our operations at that time. Today, both Transat and the global tourism industry have turned the corner. Given that and our excellent financial situation, this redemption is clearly in the interest of the Corporation and our shareholders taken as a whole,” said Jean-Marc Eustache, Chairman of the Board and Chief Executive Officer of Transat.

Transat A.T. Inc., with its head office in Montreal, is an integrated company specializing in the organization, marketing, and distribution of holiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, value-added services at travel destinations, as well as in distribution through travel agency networks. Transat is listed on the Toronto Stock Exchange (TSX:TRZ).