NEW YORK, April 1, 2004 (PRIMEZONE) -- GTREX, Inc. (OTCBB:GRXI) announced today that it has completed its merger with GTREX-Global Travel Exchange, Inc., a private company that provides direct access to reservation systems of major travel suppliers -- airlines, cruise lines, hotels, car rental companies and providers of other travel amenities. GTREX, Inc. has now assumed all operations of the private company in exchange for which shareholders of the private company were issued stock in GTREX, Inc.
The public company formally changed its name on February 24, 2004 in anticipation of the completion of the merger.
Kailash Khanna, CEO of GTREX, Inc. stated, "We are extremely pleased to begin this new phase of GTREX's development. We have worked diligently to bring our Company to the public market and believe the timing is perfect as we move forward." He added, "As a public entity GTREX will have the ability to pursue clients, alliances and funding alternatives not available to us as a private company. Management is committed to aggressively acting upon each and every opportunity and is deeply committed to increasing shareholder value."
According to Forrester Research, International tourism is a multi-trillion dollar industry forecasted to rise at 7% per annum through the decade. Travel suppliers' revenues are projected to grow at a similar pace, reaching close to $650 billion by 2007. To secure this business, $152 billion a year is spent on travel distribution -- mostly to agents, consolidators and the GDS.
GTREX is a Global Distribution System providing direct access to reservation systems of major travel suppliers -- airlines, cruise lines, hotels, car rental companies and providers of other travel amenities. GTREX searches for the availability and price for the itinerary suggested by the buyer over all direct connected suppliers and GDS and presents the aggregated result in the format preferred by the buyer. Besides improved brand and revenue management, suppliers save distribution costs while providing efficient service to major customers through direct connection. GTREX will provide integrated and seamless web-based linkage from the supplier's reservation systems direct to the systems of their selected buyers and serve as a reservation service between them, obviating the need and cost of Global Distribution Systems (GDS).
According to Phocus Wright historicals and CSFB estimates, travel distribution is moving fast from off-line to on-line in the U.S. The penetration of on-line distribution is expected to grow from 15% in 2002 to 39% by 2007. On-line distribution is expected to grow at 27.7% CAGR from 2002 to 2007 when it is expected to approach $100 billion a year. Online supplier direct distribution is expected to grow five fold from $10 billion in 2002 to $45 billion by 2007. GTREX is ideally positioned to participate in this growth.
With direct access, GTREX brings cost efficiency to the provisioning of reservations among large suppliers and large buyers of travel, decreasing the brand confusion and complexity of yield management caused by the profusion of numerous channels that exist currently. Suppliers will save GDS costs, realize better brand and yield management and provide improved, segmented customer relationships. Travelers will enjoy the convenience of consolidated passenger name records when changing itineraries.
"Safe-Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the Company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of GTREX, Inc. to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in GTREX's periodic reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and GTREX assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and or services, inability to deliver products and or services when ordered, inability of potential customers to pay for ordered products and or services, and political and economic risks inherent in international trade.