SOURCE: Travelstar, Inc

August 30, 2007 12:32 ET

Travelstar Announces Starlight Vacations

Industry Veteran Sumner to Oversee Wholesale Division

AVENTURA, FL--(Marketwire - August 30, 2007) - Travelstar (OTCBB: TVLS) announced today the formation of the Company's wholesale vacation and tour division, Starlight Vacations (www.starlightvacations.com).

William M. Alverson, Chairman and Chief Executive of Travelstar, Inc., states, "Since the launch of our company in 2004, we have concentrated solely on building our host agency operation. We, and our agency partners, have been intermediaries for other tour companies and wholesalers.

"As we surpass 100 million dollars in complex leisure travel sales annually with a network of thousands of travel agents and growing daily, creating our own unique, high-margin products is the next logical step in the Company's evolution.

"In addition to land packages, we are also creating unique Themed Cruise vacations with pre and post hotel stays and city tours. Our sales volume affords us net rate capabilities to package unique products exclusively available through our Joystar Network of thousands of travel agencies. With the addition of these products, we expect to yield 25%-35% revenue margins.

"It will substantially affect our business model and can be a tremendous driver of profits. If you look at our current model of selling other companies' products, even at the highest pay tiers in the industry, it only represents revenue margin in the high teens.

"By selling our own packages, private label tours and themed cruises, we now have the ability to double our revenue margins (revenue on gross bookings) from 15% to 30%, continue to reward our agents with the highest compensation in the industry, and increase our net revenue (revenue after selling fees) by over 500%.

"Over time, we intend to replace third-party tours with our own branded tours. And, although we expect our sales volumes with our preferred suppliers to continue to grow, our goal is to have our wholesale vacations and private-label tours represent 75% percent of our mix."

Owning your own wholesale vacation company is a popular strategy. Expedia deployed it with their acquisition of Classic Vacations, American Express with its acquired Travel Impressions and Liberty Travel and its GoGo Vacations.

Distribution is everything.

Travelstar has some of the best cruise and vacation sellers in the industry. They will benefit from being able to offer top notch, meaningful vacations that consumers cannot book anywhere else. That is key to a sustainable competitive advantage.

Travel industry veteran Wally Sumner will run the Starlight Vacation division. Wally brings over 25 years of experience in wholesale, retail and airline operations. He has worked for Air Tahiti Nui and Air New Zealand and was the President and CEO of Travel Consortium.

Wally Sumner, V.P. of Travelstar and Starlight Vacations Division manager, stated, "I'm very excited to be a part of the Company and look forward to working with our agency and supplier partners as we build the division. We are running at full speed and expect to be selling product in the Fourth quarter."

By year-end, Starlight Vacations plans to offer packages to the following destinations:

South Pacific. - Hawaii, New Zealand, Australia, Fiji and Tahiti.

Europe. - Italy, France, Spain Portugal, England, Italy, Ireland, and Scotland.

U.S. - Las Vegas, Florida, New York, San Francisco, and San Diego

Asia. - Japan, Thailand, Hong Kong, China, Singapore, Philippines.

The Company will also offer product to Mexico, Caribbean Islands, Jamaica, and Israel.

Sumner added, "We have no plans to compete on an itinerary-by-itinerary basis with its preferred suppliers. The products we create will be complementary to those of our supplier partners."

About Travelstar, Inc.

Travelstar, Inc., and its family of brands (www.joystar.com, www.vacationcompare.com, www.travelstar.com, www.starlightvacations.com), is the one of the nation's largest and fastest-growing leisure travel agency networks and a leading seller of cruises and vacation packages. In addition to our Company owned and operated brands, we also sell through thousands of private label brands. In just 3 years, we have grown to over 4,000 agents in our network and we continue to grow by approximately 300 new agents every month. Our innovative businesses have allowed Travelstar to grow from $500,000 in sales in 2004 to run rate of over $100 million in 2007. We aim to be the largest, most profitable seller of complex leisure travel in the world and partner to the most successful travel agencies in the industry.

"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. Travelstar, 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 Travelstar, 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.

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