1. Adventure Travel Division Simon Tobin 17 September 2004

2. The World of Adventure Travel • Small group exploration • All continents / 107 countries / 400 trips • Responsible Tourism

3. The Market in UK UK Worldwide Group Travel – Cultural, Activity & Adventure Explore Exodus The Adventure Company Adventure Small Groups Journey Latin America Guerba / Dragmoman / ImTrav (60,000*) Walking Activity Special Interest Individuals & Groups Self Guided (61,200*) Ramblers Discover the World Headwater Inntravel HF Holidays ATG Waymark Travelsphere Worldwide Group Travel Cultural & Comfort (158 500*) Travel Collection VJV Noble Caledonia Cox & Kings Bales *ATOL Licenses – 01/09/03

4. Customer Profiles • Grown up back packers • Late starters • First steppers • Action men & women • Serial Explorers • Average age 46 … 55% female

5. The Business Model • Small group packages • Land costs & Tour Leader & Air & Misc • Pricing = VFM • Gross margin 30% • Net margins 9% • Yield management drives profitability • Currency bought forward

6. Distribution 87% UK / IRL = EXUK Flight inclusive 13% International GSA’s = Land only USA CAN AUS NZ

7. Sales Mix UK Business 95% Direct 5% Agency Direct business 20% via Web 20% 80%

8. Organisation & Structure Explore • Marketing • Comms • Services • Distribution • Internet • Operations • Product Development • Overseas Ops • Aviation • Finance & Admin • Financial • Legal • HR • IT • Network • Systems and Development • Customer Services • Sales & Reservations • Support • Flights/Tix • CR • 120 Permanent Staff • 140 Tour Leaders & Local Leaders

9. Divisional Board Mike Tyler (3) Finance Director (Finance/IT/HR) Derek Moore (24) Aviation Director Andreas Elia (7) General Manager, RegalDive Simon Tobin (4) Mangaging Director (Sales & Marketing) Nick Anstead (10) Product Development & Ops Director Ashley Toft (9) Customer Services Director

10. RegalDive - Product • Red Sea Package Holidays • Diving, Liveaboards & Sun • Worldwide Diving • Tailor made – to Caribbean, Maldives, Indonesia, South Africa etc • Special Groups & Flights Only

11. RegalDive - Business Model • 80% Red Sea Charter 7 / 14 day rotations • 15% Worldwide • 5% Seat only / miscellaneous • Conventional Tour Operator Financial Model • 20% Gross margins. 5% Net margins • Load factors / Fixed cost commitment

12. RegalDive - Organisation & Distribution • Based in Cambridgeshire • Technical Dive & overseas expertise • Lean cost / overhead structure • Direct sales 70% • Agency / Specialist Dive 30%

13. Getting Through Difficult Times • External factors post 9 / 11 • SARS, Bali, Afghanistan, Iraq Wars, Kenya, Morocco & etc • Continue product development • Improve & Change & Develop internal systems • Flexibility in air • Internet & on-line capability • Streamline business processes • Clarify brand strategy

14. The Explore Rebrand Experience • Rationalise brand hierarchy • Master brand allows for segmentation • Multi channel application • Refresh and add style / design to enhance values and communication

15. From this

16. To this

17. Financial Performance Since 9 / 11 +14% 33.3m 32.6m 31.0m (as at 7/9/04)

18. Financial Performance Since 9 / 11 *Before goodwill, impairment and exceptional costs

19. Financial Targets • Strong top line sales growth • Margins steady at 30% + • Net margins in line with 2004 • 2005 sales currently 45% ahead – but Q4 (35% of annual total) bookings yet to start

20. Organisational Developments • On-line booking launches • Extend Web community development • IT systems development plans for handling multi flight options • Explore / RegalDive – air ticket synergies • RegalDive goes on line

21. Strategic Challenges • Operating in a changing world • Aviation issues • Competitive activity / Tour operating changing • New markets – new channels

22. The Geo-Political Map • Fundamentalism – Terrorism – Anti-Western • Political instability – e.g. Bolivia, Katmandu • New destinations vs conservation & Responsible Tourism • Customer perception – FCO advice / media • US / Allied Foreign Policy

23. Aviation • Consolidation of Flight Carriers / Alliances • Yield Management, allocation models • Short haul / Low cost • Fuel prices • Air travel safety issues

24. New Markets / New Channels • New customers – matching expectation • Plans for multi channel growth • New media / Rich media • 3 party alliances e.g. British Museum, National Trust • Replace established above line with internet / Web • Extend specialist agency links

25. Adventure Travel Division – The Future • Increased appetite for adventure travel • Geopolitical risks but a huge range of destinations and travellers will adapt • Market leadership and loyal customer base • Successful product and brand development programmes • Continuing opportunities for profitable growth

26. Investor Workshop 17 September 2004