SOURCE: Joystar, Inc.

February 01, 2007 07:00 ET

Joystar's Travel Bookings Surpass $140 Million Run-Rate

Over 300 New Members Join Its Travel Agency Network in January

ALISO VIEJO, CA -- (MARKET WIRE) -- February 1, 2007 -- Joystar, Inc. (OTCBB: JYSR), one of the nation's largest and fastest growing travel agency networks and leading seller of cruises, vacations, and group travel today announced the Company's sales have surpassed $140 million annualized.

William M. Alverson, CEO of Joystar commented, "We are experiencing staggering increases in terms of both travel bookings and growth of our agency network during the first weeks of 2007. High-margin cruises and vacation packages continue to represent 90% of our sales. The most dramatic change has been the increase in the leisure group travel segment which now represents 30% of all bookings. Additionally, we added 308 new members to our network in January setting a record for new agents in one month."

Much of the growth in bookings stems from Joystar's ability to attract a much higher caliber of agency member. "In 2005, we were thrilled to have one $1 million/yr. producer. Now, we are able to provide a compelling value proposition to established travel agencies with millions of dollars in annual sales. Given the fact we are reaching a tipping point in the home-based agency model, we expect this trend to continue," added Alverson.

To attract the industry's top producing travel sellers and to promote the Company's Enterprise program for travel agency owners with their own sales forces and small and mid-size host agencies, Joystar made several enhancements to its technology offerings and service capabilities. Major 2006 initiatives included:

--  Starbase, a private label version of the industry's most popular CRM
    software, TRAMS ClientBase.
--  VacationCompare.com, "Request Quotes. Compare Offers. Save Big," an
    online travel marketplace that matches leisure travelers to the agencies in
    its network.
--  A $2 million Errors & Omissions insurance policy covering its
    Independent Contactors at no cost.
    
According to Credit Suisse/First Boston the number of professional home-based travel agents is expected to grow from an estimated 25,000 in 2006 to 50,000 agents in 2010. Other industry studies estimate this rapidly emerging virtual (home-based) travel agency model currently represents $7.6 billion in travel sales annually.

Although bookings do not constitute revenue or income under generally accepted accounting principles, the Company feels that the growth in bookings is increasingly an indication of the consumer buying its travel agent network is capable of generating.

About Joystar

Joystar is the one of the nation's largest and fastest-growing leisure travel agency networks and a leading seller of cruises and vacations. The Company sells complex travel products including cruises, vacation packages and group travel through www.VacationCompare.com and its growing virtual sales force of travel agents.

"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. Joystar, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by Joystar, Inc. with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, and (iii) obtain additional financing, changes in general economic and business conditions (including in the online business and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, risks in connection with acquisitions, the time and expense involved in such development activities, the level of demand and market acceptance of our services and changes in our business strategies.

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 filings with the Securities and Exchange Commission, which could cause actual events or results to differ materially from the events 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.

Contact Information

  • Contact:

    For press, contact:
    Tom Hormann
    Sr. V.P. of Communications
    (919) 783-8438
    thormann@joystar.com

    For Investor information, contact:
    Mike Matsie
    Director of Investor Relations
    (949) 709-1881
    mmatsie@joystar.com