Excel Airways

[EI-BED]

EXCEL AIRWAYS TO LAUNCH INTERNATIONAL AIRLINE IN IRELAND

For Immediate Release 24 May 2006

EXCEL AIRWAYS GROUP

EXCEL AIRWAYS TO LAUNCH INTERNATIONAL AIRLINE IN IRELAND

Excel Airways, a leading charter operator in the UK and part of Avion Group listed in Iceland, is pleased to announce the formation of a wholly owned subsidiary in Ireland with immediate effect. The subsidiary, which will represent the airline under the Excel brand, will base its headquarters in Dublin.

The new operation is being headed up by Bill Smith, Managing Director and Carol Anne O’Neill, Commercial Director. Both have worked for many years in the travel industry in Ireland. Bill Smith was one of the founding members of Falcon Holidays in Ireland and became managing director and CEO for Falcon/JWT. Carol Anne O’Neill has an extensive background in the travel business in Ireland and was the former Operations Director for Falcon/JWT in Ireland.

The company will provide short, medium and long haul charter services for Irish tour operators and travel retailers commencing in the May-October 2007 holiday season. Target routes from Ireland will include Florida, Mainland Spain, the Balearics, Canary Islands, Portugal, Greece, Bulgaria, Turkey, Cyprus and Egypt. It is anticipated that at least two new routes will be introduced in the mid and long haul market. In the first year of operation, the company expects to carry in excess of 65,000 passengers.

Excel Airways has grown rapidly over the last six years, operating a core fleet of 17 aircraft with additional aircraft on lease during the peak Summer season. The airline flies to over 50 destinations in Europe, the Middle East, Asia and North America from 12 UK airports. Excel Airways Group was listed on the UK Stock Exchange prior to being acquired by Avion Group in 2004, an Icelandic investment company focused on global air, land and sea transportation worldwide. In 2005, Avion Group acquired Travel City Holdings and with Excel Airways Group, forms a significant part of Avion’s Travel and Leisure Division.

Commenting on the formation of the Irish Operation, Bill Smith said:

“We believe that the arrival of Excel Airways is excellent news for tour operators and travel agents in Ireland. The Irish public are taking more holidays than ever before and with Ryanair and Aer Lingus no longer providing a charter service, we believe that the arrival of Excel Airways will fill an important gap in the market.

We intend to offer real variety to tour operators and provide further opportunities to generate extra revenues for travel retailers.”

Magnus Thorsteinsson, Executive Chairman of Avion Group added:

“I am delighted to announce our entry into Ireland, one of Europe’s most successful economies representing a lucrative and attractive market for Excel Airways. It is very pleasing that our senior management is in place in Ireland and with their strong background in the travel industry, will be particularly welcomed by the tour operators and independent retailers in Ireland.

Naturally, it is our intention to offer real variety and greater choice for the general public.”