OTV Onetravel Hlgs

OneTravel Holdings, Inc. (AMEX: OTV), a leading online and offline provider of travel and leisure services, announced that the Company will be unable to file today its Annual Report on Form 10-K as anticipated due to a new audit point that arose late last week, which will require certain additional audit procedures. The matter relates to what the Company believes is erroneous information provided late last week by one of its suppliers. Notwithstanding management's belief that this information is erroneous, the auditors are required to perform certain standard audit procedures to verify that the information in question was, in fact, in error. The Company expects to provide its auditors with all necessary documentation on this matter on or before the end of this week. The Company believes that this is the last audit point of substance that needs to be addressed prior to completing and filing its Annual Report on Form 10-K. As reported earlier, the Company is not in compliance with the American Stock Exchange's ("AMEX") requirements for continued listing standards due to the Company's failure to timely file its Form 10-K for the fiscal year ended June 30, 2005, and its Form 10-Q for the three month period ending September 30, 2005. The Company had expected to file its Form 10-K today, which would have kept it on schedule under the plan the AMEX had approved to permit the Company time to comply with the AMEX's continued listing requirements. The Company has advised the AMEX of this new audit point and has requested a modification to its compliance plan to allow for this audit point to be addressed and to proceed with the subsequent elements of the compliance plan which involve filing the Form 10-Q for the September 30, 2005 quarter on or before February 15, 2006. As of this time, the Company has not received a definitive response from the AMEX. The Company continues to work diligently on completing this filing and will provide additional information on a timely basis. About OneTravel Holdings, Inc. (AMEX:OTV) OneTravel Holdings, Inc. (www.onetravelholdings.com) derives all of its revenues from its travel business subsidiaries, Farequest Holdings, Inc., operating under the name 1-800-CHEAPSEATS (www.cheapseats.com) and OneTravel, Inc. (www.onetravel.com), both of which are leading online and offline providers of a full range of travel services, and FS SunTours, Inc., which sells leisure and vacation travel packages under the SunTrips(R) brand (www.suntrips.com). The Company derives additional revenue from operating other travel related web sites including www.discounthotels.com and www.11thhour.com. Statements in this news release about anticipated or expected future revenue or shareholder value growth or expressions of future goals or objectives, including statements regarding market conditions or whether current plans to grow and strengthen the Company's business will be implemented or accomplished, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release and documents, the words "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. All forward-looking statements in this release are based upon information available to the Company on the date of this release. Any forward-looking statements involve risks and uncertainties, including the risk that the Company will be unable to grow or strengthen its business due to a lack of capital or a change in market demand for its products and services or to fully or effectively integrate all business units or the inability to realize anticipated cost savings or revenue and stockholder value growth opportunities associated with the acquisitions of Farequest Holdings, Inc. and OneTravel, Inc. The Company has previously mentioned in conference calls that gross bookings are not equal to gross revenues under generally accepted accounting principles, so no inference can be made about profitability based on gross bookings unless expressly stated by the Company. There is also no certainty that the Company will be successful in its quest to secure strategic alliances in its efforts to close the sale of the SunTrips business. The Company is also subject to those risks and uncertainties described in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Company's historical losses and negative cash flow, its need for additional capital, including to finance the $12,500,000 promissory notes payable to the former stockholders of OneTravel, Inc., and that future financing, if available, will dilute the Company's current common stockholders, plus the Company's ability to maintain listing with the American Stock Exchange, which if not maintained could have an adverse affect on the Company's stock value and liquidity. Additionally, forward-looking statements concerning the performance of the travel and leisure industry are based on current market conditions and risks, which may change as the result of certain regulatory, political, or economic events, a shift in consumer travel preferences, as well as those risks and uncertainties described in the Company's SEC filings, which could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements. For a complete description of the items approved at the annual stockholder's meeting, the Company's proxy statement is available for viewing in the Company's SEC filings.