New Direct Connect Relationships Bring Major North American Airline Content to the Farelogix FLX Platform

August 15, 2005

SAN DIEGO, NBTA 37th Annual Convention and Trade Show (Booth #804) – Farelogix Inc., a leading provider of independent faring and multi-source distribution technology to the global travel industry, today announced it has signed a series of contracts with leading North American airlines to offer their content using a direct connection between their reservation systems and the Farelogix FLX™ Platform.

Continental Airlines and United Airlines are among the industry leading carriers that now have distribution agreements or letters of intent in place with Farelogix. Northwest Airlines is also in the final stages of discussions with Farelogix to establish a distribution relationship. With these new deals, travel agents using the Farelogix FLX Platform can bypass traditional Global Distribution Systems (GDS) and gain access to a broad base of airline inventory, at a lower cost to airlines. These carriers represent a significant portion of air travel in the North American market.

“These direct connect agreements represent an important trend in the industry,” said Jim Davidson, President and CEO of Farelogix. “Airlines want to improve their competitive presence in the market, and the only way to do that is to have more flexibility and control over the distribution channel and the way their products are displayed. With the power of the FLX Platform, they can broaden their reach, save costs on distribution fees and compete more effectively on their own terms.”

The Farelogix FLX Platform is a low-cost distribution technology that aggregates content from all four major GDS', and also provides direct connections to a wide range of airline, private and Internet fare sources to meet the needs of suppliers, travel agents, and travelers. Carriers that are making their inventory available via the FLX Platform can maintain control over their reservation systems while lowering their distribution costs and strengthening their customer relationships through market differentiation. Agents in turn gain access to privileged inventory that is not readily available on the GDS'. With a single dashboard view of available content, agents can also improve their booking and response times, and upsell products that generate incremental revenue.

Davidson continued, “With these direct connect relationships, Farelogix is gaining the critical mass required to solidify its role as a dominant player in content delivery in the North American market.”

“The Farelogix direct connection allows us to distribute our product to travel agencies and corporations at 10% of the current GDS costs. This kind of distribution model gives us the ability to provide third parties access to all our fares and inventory in a very economical manner,” said Scott Stachowiak, Senior Manager of Distribution Strategy at Continental. “Further, the use of an open source XML platform reflects the ongoing travel industry evolution away from inefficient, decades-old, technology and distribution systems.”

Al Lenza, Vice President of Distribution and E-commerce at Northwest Airlines said, “We look forward to our future participation in Farelogix’ product, which will allow us to offer a new electronic distribution alternative to travel agents and corporate accounts at lower costs to Northwest.”

About Farelogix
Farelogix is a leading provider of lower-cost, multi-source distribution and independent faring technology to the global travel industry. The company’s FLX™ platform aggregates content from all four major Global Distribution Systems, as well as airline, private and Internet fare sources, while its sophisticated pricing technology enables comparative shopping across sources. Farelogix was founded in 1998 and counts among its customers some of the largest travel companies in Canada and the United States including Navigant International, American Express and Carlson Leisure Group Services. Farelogix has offices in Toronto, Canada and Miami, Florida. For additional information, visit www.farelogix.com.

Media Contacts:

Jodi Echakowitz
Echo Communications (for Farelogix)
Telephone: 905-709-9600
E-mail: press@farelogix.com
NBTA Trade Show Booth #804