RNS Number:0687S
First Choice Holidays PLC
14 November 2003

14 November 2003



FIRST CHOICE HOLIDAYS PLC ("First Choice")



DISPOSAL OF SPANISH LEISURE RETAIL ("Spanish Retail") AND INTERNATIONAL BUSINESS
                     TRAVEL ("Business Travel") OPERATIONS
                               ("The Businesses")

               to Barcelo Corporacion Empresarial SL ("Barcelo")



Disposal


Earlier in the year, First Choice conducted an auction process in relation to
The Businesses, which are not considered to be core to First Choice's strategy.
The Businesses are part of the Barcelo Travel Division ("BTD") purchased from
Barcelo in June 2000.  Under the agreements entered into with Barcelo at that
time, Barcelo retained a pre-emption right to re-acquire The Businesses should
First Choice decide to dispose of them.  Following the conclusion of the auction
process, Barcelo has today exercised its pre-emption right and committed to
purchase The Businesses (including a 25% interest in Mundosocial AIE which
provides holidays for Senior Citizens in Spain) on terms equivalent to those
that had been agreed with the previously favoured bidder.



First Choice, therefore announces the sale of its Spanish Retail and Business
Travel operations to Barcelo, a leading private Spanish leisure group, for a net
cash consideration of approximately Euro43.5 million, (#30.2 million).  First
Choice will retain its high growth international destination services and events
business ("Destination Services"), which includes Hotelbeds.com ("Hotelbeds"),
which was also acquired in June 2000 as part of BTD.



The transaction falls under the related party regulations in the Listing Rules
of the UK Listing Authority.  Completion of the transaction is subject to
compliance with those regulations and is conditional on receipt of Spanish
Competition Authority clearance.  Completion is expected to take place in
January 2004.



First Choice will receive the net cash consideration on completion and agreement
of the working capital position, except for Euro3.5 million (#2.4 million) which
will be held in escrow, until the end of the warranty period.  Following
completion of the disposal, the proceeds will be used to repay debt.



The Spanish Retail and Business Travel operations made an operating profit of
#2.4 million in the year to 31 October 2002 and had net assets of #3.3 million
at 31 October 2002.



Destination Services and Hotelbeds


The sale of the Spanish Retail and Business Travel operations will give First
Choice the opportunity to focus its expertise on generating strong organic
growth in these two specialist businesses.  In the financial year ended 31
October 2003, Destination Services handled 3 million clients, an increase of 11%
on the previous year while Hotelbeds, which started operating in 2002, sold 0.8
million bed nights in its first year to 31 October 2002, and is expected to sell
2.0 million bed nights in its second year.



Commenting on the disposals, Peter Long, Chief Executive said:



"The strategy for our Spanish business is to focus on Destination Services and
Hotelbeds, both fast growing businesses.  The disposals announced today complete
the re-shaping of our Spanish business in line with that strategy, and we look
forward to the benefits that will result from the management team being able to
focus solely on Destination Services and Hotelbeds.  We believe that the
specialist businesses we retain are core to the First Choice strategy and offer
strong organic growth prospects."



Enquiries:



Peter Long, Chief Executive                      Tel: 01293 588 024
Andrew Martin, Group Finance Director            Tel: 01293 588 036



Lesley Allan/Jessica Rouleau
Hudson Sandler                                   Tel: 020 7796 4133








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