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ANNUAL RESULTS TO 30 JUNE 2008

• TTV up 32% to $330 million
• NPBT up 80% to $9.5 million
• NPAT of $9.4 million *
• Record TTV July 2008 up 33% on 2007

Webjet today announced the following results for the year ended 30 June 2008 :

Commenting, Webjet Managing Director David Clarke said:

Webjet is delighted to announce a 80% increase in profit before tax.

*The 134% increase in net profit after tax includes a one-off boost of $2.7 million and reflects the establishment of a deferred tax asset in Webjet's accounts in relation to the copyright benefit in the TSA licence which is Webjet's core software asset.

Dividends

A final dividend of 3 cents per share, franked to 100%, has been declared and will be paid on 9th October. This is in addition to the interim dividend of 2 cents, unfranked, which was paid in April.

Operating results for 2008 by main indicator :

• Strong TTV growth of 32% was exactly in line with the market guidance provided twelve months ago. The full year 2008 domestic/international TTV mix was 65%/35% as expected.
• Operating margins increased. Income, excluding interest, of $23.5 million was 48% up versus 2007. The margin to TTV of 7.1%, increased from 6.4% in 2007.
• Cash reserves at 30 June 2008 were $28 million, up from $20 million last year. The company has no debt and, as a result, has a range of capital management options.
• Economy of scale in costs. Total costs for the full year, inclusive of marketing, were $15.6 million, an increase of 28% compared to the year-over-year gain of 48% in operating income.
• Marketing costs below control percentage. Marketing costs as a percentage of TTV of 1.8%, were below the 2% total control band previously advised but in line with the expected outcome for 2008 as projected twelve months ago.

Strategy and Guidance 2008/2009

Webjet considers that the general and macro environment for 2008/2009 will be significantly restrained, relative to 2007/2008, by the impact of higher interest rates, higher oil prices and the current downturn in broad consumer confidence which is adversely affecting the overall retail market in Australia.

The buoyant overall travel demand environment of 2007/2008 is likely to be replaced with a more measured expectation of consumer expenditure and the nature of that expenditure on travel. Specifically,

• As a reflection of reduced demand and increased airline capacity, it is likely that the unit value of travel will decrease.
• Consumers will aggressively hunt bargains.
• If recent USA experience is an appropriate guide, it is likely that aggregation sites, such as Webjet, subject to their marketing footprint, will gain market share, i.e. all the bargains in one place. More than ever, travel product and distribution brands and their associated market footprint will be a key driver and Webjet intends in this environment, subject to a TTV control percentage of not greater than 2%, to maintain an aggressive marketing position.
• Any significant change to the current high levels of employment has the potential to seriously affect travel demand.

Although July has produced a record monthly TTV, up 33% on last year, it is difficult to precisely forecast the full year at this stage. Nevertheless, we would expect profit growth for 2008/2009 to exceed 12%.