Transat A.T. Inc. announces revised preliminary results of its Substantial Issuer Bid

Montreal, Qc, Canada, December 23, 2005

The press release issued today concerning the preliminary results of its substantial issuer bid is revised and replaced by the following.

Transat A.T. Inc. announced that it was informed by CIBC Mellon Trust Company, acting as depositary under its offer to purchase up to $125 million of its Class A Variable Voting Shares and Class B Voting Shares (collectively the Shares), that 2,543,916 Shares duly deposited under the offer were not taken into account by CIBC Mellon Trust Company in the numbers reported to Transat and subsequently disclosed in Transat’s press release issued this morning. The offer expired on December 22, 2005 at 5:00 p.m. (Montreal time). In light of this information, Transat will purchase for cancellation a total of 6,510,416 Shares deposited, at a purchase price of $19.20 per Share, for a total of $125 million.

The revised total number of Shares deposited or deemed to be deposited at or below the purchase price of $19.20 as of the expiration date of the offer was 6,624,976. As a result, shareholders who deposited Class A Variable Voting Shares or Class B Voting Shares at or below the purchase price of $19.20 or pursuant to purchase price tenders will have approximately 98% of the Shares bought back, subject to adjustments for odd lots and to avoid the creation of fractional Shares and to avoid the creation of odd lots as a result of proration.

The Class A Variable Voting Shares and Class B Voting Shares to be purchased comprise approximately 16.2% of the outstanding Shares of Transat before giving effect to the purchase. After giving effect to the purchase, there will remain approximately 33,650,805 Shares outstanding. Transat and CIBC Mellon Trust Company expect that the final purchase price, proration factor and exact number of Class A Variable Voting Shares and Class B Voting Shares to be taken up and paid for under the offer will be determined on or before January 3, 2006. Payment for Class A Variable Voting Shares and Class B Voting Shares tendered and accepted for purchase will be made at the latest by January 6, 2005. Return of Class A Variable Voting Shares and Class B Voting Shares not purchased because of proration or because they were invalidly deposited, will be made as promptly as possible.

Transat’s normal course issuer bid, which was suspended with the announcement of the substantial issuer bid, resumes as of the date hereof.

Transat A.T. Inc. with its head office in Montreal is an integrated company specializing in the organization, marketing, and distribution of holiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, value-added services at travel destinations, as well as in distribution through travel agency networks. Transat is listed on the Toronto Stock Exchange (TSX:TRZ.B, TRZ.RV.A).

This news release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Corporation considers the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Corporation. The information contained herein is dated as of December 23, 2005. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.