Offer by Air Atlanta

RNS Number:6454V
Excel Airways Group PLC
20 February 2004



For Immediate Release                                 20 February 2004


                      Excel Airways Group plc ("EAG")

     #29.9 million offer by Air Atlanta for 38.9 million shares in EAG


EAG announces that Flugfelagid Atlanta hf d/b/a Air Atlanta Icelandic ("Air
Atlanta") has made a #29.9 million offer to Libra Holidays Group Ltd ("Libra")
for the purchase of its holding of 38.9 million shares in EAG, representing
40.5% of the issued share capital. Subject to CAA approval, ratification by the
Board of Directors of Air Atlanta and the approval of the shareholders of Libra,
completion is expected by 15 March 2004.

Libra, which has indebtedness to EAG's subsidiary, Excel Aviation of #15.78
million, agrees to repay in full all amounts outstanding from the proceeds of
the share sale. Additionally, Libra has entered into a long term agreement with
Excel Aviation for the supply of future seat capacity.

Following the purchase by Air Atlanta of EAG shares, Libra will hold 37,439,566
shares representing 39% of the issued share capital. The Panel on Takeovers and
Mergers, having received notice from shareholders holding over 50 per cent of
the issued share capital of EAG (including Libra in respect of the balance of
its remaining shares) that they would not accept an offer from Air Atlanta on
the above terms, has granted a dispensation from the mandatory bid requirements
of the Takeover Code in respect of the aforementioned purchase of shares by Air
Atlanta. The management team will retain their shares representing 18.2%.

Air Atlanta is the largest wet lease charter airline in the world and is the
major supplier of Boeing aircraft leased byEAG's subsidiary Excel Airways for
summer only use. During summer 2004, nine aircraft will be leased from Air
Atlanta and as part of the share sale arrangement, a five year commercial
agreement will be signed for the supply of summer only aircraft to Excel
Airways. Air Atlanta's turnover in 2003 amounted to Euros 240 million* and its
assets at the beginning of 2004 were Euros 80 million*.

As well as providing Excel with a long term source of flexible seasonal
capacity, Air Atlanta with theirskill and experience in operating in the
worldwide wet lease market will be able to assist Excel in exporting its
successful business model to other parts of the world. The opportunities for
jointly accessing potential economies of scale will be vigorously pursued by
both airlines as a result of this partnership.

Phil Wyatt, Chief Executive, commenting on the transaction said:

"With Air Atlanta now becoming a significant shareholder in EAG, we are able to
secure a very important trade partner who has provided substantial funds to
Libra to facilitate a full repayment of its indebtedness to EAG. At the same
time, Libra, who is an important customer of Excel Aviation, will have realised
a significant gain on their investment."

For further information, please contact:

Richard Darby, Suzanne Brocks
Buchanan Communications 020 7466 5000

* as supplied by Air Atlanta


Notes to Editors

Excel Airways is one of the UK's major charter passenger airlines and provides
short-haulservices to European and Middle Eastern leisure destinations as well
as long-haul to the Caribbean. The airline operates an all Boeing fleet from its
three bases at London Gatwick, Manchester and Glasgow.

Excel Airways sells the majority of it's capacity through Excel Aviation, its
commercial sales division and Freedom Flights, a seat only operator selling
seats on charter aircraft, generally through UK travel agents. Excelairways.com
is an internet based trading division of Excel Airways which sells tickets
direct to the public.



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            The company news service from the London Stock Exchange

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