Transat A.T. Inc. announces final results of Substantial Issuer Bid

Montreal, Qc, Canada, January 3, 2006

Transat A.T. Inc. announced the final results of its offer to purchase for cancellation up to $125 million of its Class A Variable Voting Shares and Class B Voting Shares.

Based on final reports from CIBC Mellon Trust Company on the response to its offer to purchase, Transat takes up 1,780,797 Class A Variable Voting Shares and 4,662,502 Class B Voting Shares at a purchase price of $19.40 per share. The final pro-ration factor that has been applied to the Class A Variable Voting Shares and Class B Voting Shares properly deposited is approximately 99%. As a result, shareholders who deposited Class A Variable Voting Shares or Class B Voting Shares at a purchase price of or below $19.40 per share or pursuant to purchase price tenders will have approximately 99% of their shares bought back at the purchase price, subject to adjustment for odd lots and to avoid the creation of fractional shares.

Payment for Class A Variable Voting Shares and Class B Voting Shares validly deposited and taken up by Transat will be made no later than January 6, 2006. Return of Class A Variable Voting Shares and Class B Voting Shares not purchased under the offer will be made as promptly as possible.

The Class A Variable Voting Shares and the Class B Voting Shares to be purchased for cancellation comprise approximately 16% of the outstanding shares of Transat before given effect to the purchase. After giving effect to the purchase, there will remain approximately 4,958,015 Class A Variable Voting Shares and 28,761,607 Class B Voting Shares outstanding.

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 January 3, 2006. 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.