Transat A.T. inc. Renews its Normal Course Issuer Bid

Montreal, October 26, 2000

Transat A.T. inc. announces that it has obtained approval from the Toronto Stock Exchange in order to renew its normal course issuer bid.

Therefore, beginning on October 30th, 2000, Transat will be authorized to acquire, from time to time, during a twelve-month period and when it deems it appropriate, an additional number of 2,283,243 common shares, representing approximately 10 % of its public float of 22,832,430 common shares as at October 20th, 2000. The common shares purchased will be cancelled. There were 31,873,621 common shares issued and outstanding as at October 20, 2000.

Transat’s management considers that the acquisition of common shares, that it may effect from time to time in the course of this issuer bid, represents an advantageous investment both for the Corporation’s funds and for its shareholders. If Transat deems it appropriate, purchases may commence on October 30th, 2000 until, at the latest, October 29th, 2001.

As part of its ongoing normal course issuer bid, Transat has acquired until October 20, 2000, 1,457,265 common shares at an average price of $7.05.

Transat A.T. Inc., the leader in the Canadian travel and tourism industry, is a public corporation listed on the Toronto Stock Exchange. Through its subsidiaries and affiliates, it is involved in all aspects of the organization and distribution of travel services and air transportation.

Its wholly-owned subsidiaries are: the airline Air Transat, tour operators Air Transat Holidays (Montreal, Quebec City, Toronto, Vancouver and Fort Lauderdale), Vacances Air Transat (France), Brok’Air/Anyway (France), Voyages Nolitour (Montreal), Regent Holidays (Toronto), the Tourbec travel agency chain, the Consultour/Club Voyages travel agency network, Handlex, an airport handling services company, Exit Travel, which specializes in retail e-commerce, and the hotel management company Cameleon. Transat A.T. Inc. holds interests in tour operators Look Voyages (98%) and World of Vacations (35%).

As well, Vacances Air Transat holds a 66.7% interest in the incoming tour operator DMC Transat, and Look Voyages owns 49.6% of STAR Airlines.