Webjet Clarifies Media Article

Webjet today requests that the market note particular corrections to an article published in The Australian newspaper on 5 June 2006 covering various matters relating to S8 and Webjet.

The article incorrectly states that “S8 still owns 19% of online travel agency Webjet Limited, but declined the opportunity to move to 34% ownership.”

In relation to this matter,

1. As advised to the market on 6 February 2006 by S8 Limited and Webjet Limited, Harvey World Travel Limited sold its 19% shareholding in Webjet Limited.  To the best of our knowledge, neither Harvey World Travel nor S8 Limited currently owns any shares in Webjet Limited.  The Australian Stock Exchange was advised on 6 February 2006.
2. Harvey World Travel Limited currently retain rights to 56 million growth options, which may be exercised at their call any time up until July 2009.  The exercise price of those options is calculated relative to the volume weighted average price of Webjet stock at a sliding discount scale, which becomes less as time goes on.  Webjet Limited has no knowledge of Harvey World Travel’s intention in relation to the exercise of those options, which are non-transferable and
   non-saleable.  If the options were to be exercised as an example, at today’s date, they would require a payment of in excess of $17m to Webjet Limited, and result in an equity position of approximately 17.4%.  No other rights attach to the options.

The article also attributes comments to the S8 Chairman to the effect that, “S8 has acquired the technology used by Webjet and plans to use this to give the company a greater online presence.”

It is our view that this comment does not fully reflect the nature of the technology license granted to Harvey World Travel Limited by Webjet in mid-2004.  At that time Webjet Limited granted Harvey World Travel a limited and specific operating license to part of the Webjet technology relating to the internet booking engine called the Travel Service Aggregator (TSA).  The license has particular and prescribed purposes for use within the Harvey World Travel Group and consists of a version of the technology which existed in 2004.  No subsequent rights or licenses have been extended to Harvey World or S8.

Webjet has requested The Australian newspaper to publish a correction and clarification in relation to these matters.