Holidaybreak PLC Results for the six months ended -2-

Prior to these events, the businesses had experienced very strong trading in Q1, despite the disruption caused by the UK and Dutch airport closures due to snow in December. The unprecedented series of global events led to high levels of cancellations, lower levels of forward bookings, reduced load factors and costs attributed to dealing with the disruption. These events are estimated to have cost the division approximately GBP1m in lost profit in the first half of the financial year and a further GBP0.5m in the second half. In light of the disruption, the businesses have refined their product offering to focus on the most profitable tours and to maximise load factors.

Sales intake for the Adventure businesses is currently 3% below last year as the geopolitical instability in the Middle East, North Africa and Asia have negatively impacted performance.

Hotel Breaks

The Hotel Breaks Division's first half statutory operating profit was GBP3.9m (2010: GBP4.2m) with revenue of GBP59.7m (2010: GBP65.1m). Headline operating profit(3) was GBP4.2m (2010: GBP4.5m).

The bad weather in December 2010 and the difficult consumer environment in the UK and the Netherlands impacted performance. Despite the revenue decline, Superbreak's gross margin was up 70 bps and costs were tightly managed and reduced by 18% to maintain profit. The revenue decline in Bookit, partially offset by improved profit at West End Theatre Bookings, resulted in a reduction in divisional profit of GBP0.3m.

Sales intake for Hotel Breaks is currently 9% below last year. Trading continues to be difficult with sales through UK retail travel agents and Bookit lower than last year. Superbreak's sales have also been affected by the loss of UK airport hotel contracts with large retail travel agents, although this was a low margin product. Excluding these contracts, the underlying trend shows sales intake currently at 6% below last year.

We continue to manage the business tightly with a focus on reducing costs and growing the higher margin direct to consumer sales channel, whilst at the same time positioning the business to ensure it is well placed to benefit when the trading environment improves.

Camping

Since the vast majority of the Camping Division's revenues occur in the second half of the financial year, the division always reports an interim operating loss. In 2011, this was GBP12.3m (2010: GBP12.4m). The division is again expected to deliver strong cash flow and good margins in the full year.

Sales intake for the Camping Division is 5% below last year in the context of a 3% reduction in capacity. The trend towards later bookings continues with the division currently 82% booked compared with 86% last year. Trading conditions in the UK and Dutch markets have been difficult, whilst Germany has been performing well. The division continues to focus on maximising occupancy and yields across its sales markets.

Capital expenditure (net of disposal proceeds) for 2011 in the Camping Division is expected to be GBP8.7m (2010: GBP6.5m), including GBP7.3m on 565 replacement mobile-homes (2010: GBP6.2m on 450 replacement mobile-homes). The division has confirmed that the mobile-home life extension programme has been adopted with capital expenditure savings expected over the medium term.

Board Changes

Neil Bright was appointed Group Finance Director with effect from 1 January 2011. Neil succeeded Bob Baddeley, who retired on 31 December 2010 after more than 15 years with the Company.

Ludger Heuberg was appointed a Non-executive Director and Chairman of the Audit Committee on 18 April 2011. Ludger is currently Group Chief Financial Officer of H.C. Starck Group and is also a Member of the Advisory Board of Commerzbank A.G. Previously he spent six years with Thomas Cook Group including, from June 2007 to June 2008, as Group Chief Financial Officer of Thomas Cook Group plc. He also held the position of Chief Financial Officer and HR Director on the management board of Thomas Cook AG from 2004 to 2010.

Dividend

The Board has declared a half year dividend of 3.35p per share (2010: 3.20p) reflecting its confidence in the outlook for the full year. This will be payable on 10 August 2011 to shareholders on the register on 15 July 2011. The ex-dividend date will be 13 July 2011.

The Board will continue to keep the Company's dividend policy under review, taking into account both trading and outlook.

Outlook

Sales intake for the year to date is 4% below last year reflecting a difficult trading and operating environment for our traditional travel businesses and a later booking trend at Camping.

Our largest division, Education, which operates in segments that are much less exposed to discretionary spending and have strong social, political and demographic drivers for growth, continues to perform well and has strong visibility in the current financial year with 96% of revenue booked and 39% of 2012 target revenue already secured.

We continue to manage all of our businesses tightly with a focus on cash generation, margin and cost control and we expect to perform in line with our expectations for the year ending 30 September 2011.

John Coleman

Chairman

24 May 2011

(1 ) Headline loss before tax is stated before amortisation of other intangible assets acquired via business combinations of GBP0.7m (2010: GBP0.9m), separately disclosed items of GBP1.1m (2010: GBPnil) and other gains and losses, being IAS 39 mark-to-market revaluations of financial derivatives of GBP4.2m credit (2010: GBP1.4m charge).

(2) Headline tax rate is stated before amortisation of other intangible assets acquired via business combinations, separately disclosed items and other gains and losses, being IAS 39 mark-to-market revaluations of financial derivatives.

(3) Headline operating (loss) profit is stated before amortisation of other intangible assets acquired via business combinations and separately disclosed items as set out in note 4 of the attached financial information.

INDEPENDENT REVIEW REPORT TO HOLIDAYBREAK PLC

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2011 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and related notes 1 to 12. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

INDEPENDENT REVIEW REPORT TO HOLIDAYBREAK PLC (continued)

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditors

Manchester, United Kingdom