IPO Company Profile
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Global Vacation Group, Inc.
1455 Pennsylvania Avenue, N.W., Suite 350, Washington, DC 20004 * (202) 371-0150

The company is one of the largest U.S. provider of value added vacation products and services targeted to higher income travelers.

Primary Underwriting Group
ManagerTierPhone
Salomon Smith BarneyLead Manager (212) 723-7300
BancAmerica Robertson StephensCo-manager (415) 989-8500
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100

Offering Information
NYSE:GVG Transportation: SIC 4725
Type of Shares:Common Shares Filing Date:5/14/98
U.S. Shares:3,000,000 Offer Date:7/31/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:3,000,000 Offer Price:$14.00
Secondary Shares:0 Gross Spread:
Offering Amount: $42,000,000 Selling:
Expenses: - Reallowance:
Post-IPO Shares: -
Employees:750

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Hogan & Hartson
Bank's Law Firm: Hale and Dorr
Auditor: Arthur Andersen

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$24.25Assets:$19.38
Net Income:-$1.10Curr Assets:$18.94
EPS:Liabilities:$19.02
Prior EPS:Curr Liab:$19.02
Cash Flow/Oper:-$2.17Equity:$0.36
Cash Flow/Fin:$1.99Cash:$7.91
Cash Flow/Inv:$1.57Working Cap:-$0.08

Competition
The Company competes with a variety of other providers of travel and travel-related products and services. Its principal competitors are (i) other vacation providers, (ii) travel suppliers who sell directly to individual travelers and (iii) travel agencies and other retail and wholesale distributors of travel products and services, some of which are larger and have greater name recognition and financial resources than the Company. The Company believes it competes for customers based upon the quality of the travel products and services delivered, price, specialized knowledge, reputation and convenience. The Company believes it is well-positioned to compete on these bases.

Business Plan
The Company's objective is to become the leading provider of value-added vacation products and services targeted to higher-income travelers. To accomplish this objective, the Company pursues an operating strategy that includes the following elements: (I) Providing Value-added Vacation Products and Services, (ii) Establishing National Brand Name Recognition, (iii) Leveraging Strength in Selected Travel Destinations, (iv) Pursuing Revenue Enhancing Opportunities, (v) Improving Operating Efficiencies and (vi) Implementing Integrated Information Systems.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of debt and redemption of a portion of the shares of Convertible Preferred Stock.

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