Transat A.T. Inc. is repaid $10.8 million in ABCP securities

Montreal, December 24, 2007

Transat A.T. Inc. announces it has been repaid $10.8 million out of $11 million face value in non-bank asset-backed commercial paper (ABCP) securities, following the successful restructuring and distribution of the assets of Skeena Capital Trust Series A Notes.

On August 22, Transat announced that it had $154.5 million invested in 10 different ABCP trusts, all impacted by an ongoing disruption of credit markets. Today's announcement brings the total amount of Transat funds blocked in ABCP securities to $143.5 million.

Despite liquidity concerns related to ABCP products, Transat has sufficient cash available to meet all of its financial, operational and regulatory obligations. Over 90% of Transat's ABCP investments are in vehicles whose underlying assets are rated AAA — the highest credit quality — by Dominion Bond Rating Service (DBRS).

Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, destination services and distribution. (TSX: TRZ.B, TRZ.A)

Caution regarding forward-looking statements
This news release may contain forward-looking statements regarding, without limitations, the Corporation’s financial, operational and regulatory obligations, and the risks related to the repayment of asset-backed commercial paper held by the company. Factors that could lead actual results to differ materially from those contemplated by the forward-looking statements also include general economic conditions, competition, extreme weather conditions, disease outbreaks, war, terrorism, and other risks detailed from time to time in the Corporation’s continuous disclosure documents.

These forward-looking statements, by their nature, necessarily involve risks and uncertainties, many of which are beyond the Corporation's control 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 cautions 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 may affect the Corporation.

For additional information with respect to these and other factors, see the Annual Information Form and Annual Report for the year ended October 31, 2006, filed with Canadian securities commissions. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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