Transat A.T. Inc. is adding a second credit card processor to process its credit card transactions in Canada

Montreal, February 28, 2011

In accordance with the agreement entered into with its principal credit card processor whereby Transat can transfer up to 20% of its annual Canadian credit card transactions to another credit card processor, Transat has signed a new agreement with a second credit card processor effective immediately and valid until February 28, 2015.

The Canadian credit card proceeds treated under this new Agreement will not be subject to the block account requirement that is provided in the Agreement governing its relationship with its principal credit card processor.

Under the terms of this new Agreement, Transat is required to maintain a minimum unrestricted cash and cash equivalents position at the end of each quarter as well as an obligation to maintain financial leverage ratio comparable to its bank agreement.  A failure by Transat to comply with these covenants could result in a variety of adverse consequences, including an obligation by Transat to provide this new credit card processor with a letter of credit according to a predetermined formula based on the quarterly dollar volume of credit card transactions done by this new credit card processor.

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, accommodation and distribution. (TSX: TRZ.B, TRZ.A)

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