Farelogix Secures $4 Million From Sandler Capital

TORONTO, ONTARIO, CANADA and DALLAS, TEXAS, USA – Farelogix Inc., an innovative leader in rate and inventory technology for the worldwide travel industry has received a US $4 million investment from Sandler Capital, a New York based investment firm. “Sandler Capital is an excellent partner for us,” said Rick Gossage, Chairman and Founder of Farelogix. “In addition to their capital resources, they continue to provide us with real corporate development support and significant industry and operating insights.”

A portion of the proceeds from the financing will be used to acquire technologies that enable the company to more rapidly configure its software to a broader array of customer requirements. “We are committed to providing our customers with valuable and flexible solutions that are responsive to their changing needs" said Rick Gossage. In conjunction with the financing, Farelogix announced that the company’s Board of Directors had appointed Bert Amato as the Company’s interim President and CEO. Mr. Amato is an investor in the company and has been a member of its Board of Directors for the past three years. Mr. Amato was a co-founder of Delrina Corporation, which pioneered the development of PC fax software called WinFax. Delrina was successfully sold to Symantec Corporation in a $560 million transaction in 1995.

Richard Keller, Managing Director of Sandler Capital, said that he was enthusiastic about the company’s growth potential. “Travel is the third largest industry in the world and it is going through dramatic changes driven by advances in technology, the demand for greater business efficiency, and pressures forced on the industry by evolving global events.” Mr. Keller added, “Farelogix is well positioned to be a significant piece of the distribution infrastructure for the strategies of many global travel companies.”

Farelogix software can simultaneously search for air travel inventory from multiple databases of private, wholesale, published, web and direct to carrier fares. Customers use the software to improve their profits by automating the searching and booking process and by enabling dynamic mark-up of fares to maximize yield. The software is currently being used by major travel companies in their call centers and for web based business-to-business (B2B) or business-to-consumer (B2C) distribution initiatives.

About Farelogix
Farelogix is an innovative leader in the delivery of rate and inventory technology to the worldwide travel industry. Farelogix software solutions are used to manage complex airline contracts and related fares data for some of the most successful travel suppliers and professionals in the industry. Farelogix products are based on state-of-the-art, patent pending technology that supports Global Distribution Systems (GDS), computer reservation systems and management systems. Farelogix is headquartered in Toronto, Ontario, Canada and has a branch office located in Dallas, Texas.

About Sandler Capital
Sandler Capital is a New York-based investment firm with over 20 years of experience and approximately $1.5 billion under management. The firm is a stage independent investor that focuses on companies in the communications, media, technology, entertainment and leisure industries.

For more information, contact:

Richard A. Keller, Managing Director
Sandler Capital Management
767 5th Avenue 45th Floor
New York, NY 10153
Telephone: 212-754-8136
Fax: 212-754-8183
E-mail: rich@sandlercap.com

Rick Gossage, Chairman and Founder
Farelogix Inc.
10 Bay Street, Suite 1410
Toronto, Ontario, Canada M5J 2R8
Telephone:416-504-8322
E-mail: rgossage@farelogix.com