1. Interim Results 2007 & Proposed acquisition of PGL, formation of Education division May 2007

2. 2 European specialist holiday group European specialist holiday group Important Notice  The information in this document does not constitute or form any part of an offer or invitation to sell, or issue, or any solicitation of any offer to purchase, subscribe for or otherwise acquire any shares or other securities in Holidaybreak plc (“Holidaybreak") in any jurisdiction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract therefor. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, expressed or implied, is given on behalf of Holidaybreak or any of its respective directors, employees, agents or advisers as to the accuracy or completeness of the information and no liability is accepted (and all such liability is hereby excluded) for any such information or opinions. Readers of this document are reminded that the information in this document has not been verified and is liable to change and that any decision to acquire shares in Holidaybreak should be made only on the basis of information contained in the final class 1 circular to be issued by Holidaybreak which may be different from the information contained in this document. This document is being supplied to you solely for your information and may not be reproduced or further distributed to any other person or published, in whole or part, for any purpose. This document is intended only for distribution to persons who are persons falling within Articles 19 or 49 (2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such persons being referred to as "relevant persons"). This document must not be acted on or relied on by or sent to persons who are not relevant persons. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdiction.  The information in this document is confidential and, as such, may constitute inside information relating to the securities of Holidaybreak for the purposes of relevant insider dealing laws.

3. 3 European specialist holiday group European specialist holiday group Holidaybreak plc Agenda Bob Ayling (Chairman) - Overview Carl Michel (Group Chief Executive) and Bob Baddeley (Group Finance Director) - Results - Highlights - Finance Review - Divisional Review - Proposed Acquisition of PGL

4. 4 European specialist holiday group European specialist holiday group Holidaybreak plc Highlights Interim results - Solid performance - DPS +10% Current trading broadly in line with expectations Satisfactory trading outcome anticipated for full year Proposed acquisition of PGL - An excellent strategic opportunity - A profitable, growing business in the attractive outdoor education and adventure sector

5. Interim Results for the six months ended 31 March 2007

6. 6 European specialist holiday group European specialist holiday group FINANCE DIRECTOR’S REVIEW BOB BADDELEY Holidaybreak plc INTERIM RESULTS 2007

7. 7 European specialist holiday group European specialist holiday group Interim Results 2007 FINANCIAL HIGHLIGHTS  Revenues +13% to £100.6m (2006 : £88.7m)  EBITA loss £-5.7m (2006 : £-5.3m)  Net debt reduced by £6.6m to £29.6m (2006 : £36.2m)  Dividend up 10%

8. 8 European specialist holiday group European specialist holiday group Interim Results 2007 INCOME STATEMENT

9. 9 European specialist holiday group European specialist holiday group Interim Results 2007 DIVISIONAL RESULTS

10. 10 European specialist holiday group European specialist holiday group Interim Results 2007 CASH FLOW

11. 11 European specialist holiday group European specialist holiday group Interim Results 2007 BALANCE SHEET

12. 12 European specialist holiday group European specialist holiday group CEO REVIEW CARL MICHEL Holidaybreak plc INTERIM RESULTS 2007

13. 13 European specialist holiday group European specialist holiday group Interim Results 2007 HOTEL BREAKS HOTEL BREAKS  Half year EBITA down slightly at £6.7m (2006: £6.8m)  Sales currently up 8%  Acquisition of West End Theatre Bookings at the end of January  Growth in ‘bundled’ sales – now 38% of turnover (23% of bookings) versus 27% (and 16%) last year  Overseas hotels now at 3,200 (vs. 2,400 last Sept.)  Steady progress

14. 14 European specialist holiday group European specialist holiday group Interim Results 2007 ADVENTURE TRAVEL ADVENTURE TRAVEL  Half year EBITA at £1.2m (2006: £1.0m)  Outlook for summer is for +7% sales growth  Launch of new specialist Explore brochures – Archaeology and Eclipse/Astronomy  Families product continues to grow strongly – UK up 25% and NL up 117% - to about 13% of business  Americas and Asia performing well, Middle East/Egypt down around 25%  Travelplus (recently acquired German business) performing ahead of expectations

15. 15 European specialist holiday group European specialist holiday group Interim Results 2007 CAMPING CAMPING  Half year loss of £13.6m (2006: £13.1m)  Capacity down 4% (mobile homes –2%, tents –12%)  Sales level with last year, 85% sold to date  Strong growth in Irish market  Mobile home occupancy forecast to increase to 101 days this year (up 4 days on last year)  Outcome will be determined by late UK booking market – unlike 2006 where stock was sold early, ahead of the World Cup

16. 16 European specialist holiday group European specialist holiday group Interim Results 2007 STRATEGIC DEVELOPMENTS STRATEGIC DEVELOPMENTS  PGL fits with strategic framework announced last year  Healthy pipeline of other deal opportunities especially in Adventure Division, both in Europe and UK  Product extensions  New sales areas  Organic growth opportunities in each division  All areas looking to increase ‘value added’

17. 17 European specialist holiday group European specialist holiday group Interim Results 2007 WEB DEVELOPMENTS WEB DEVELOPMENTS  Hotel Breaks have launched PayPal processing, ‘My Holiday’ reviews, live hotel connectivity and RSS  Next projects to include gift certificates/vouchers, video streaming and web services (enabling content to be sent to more partners)  Indian software development - new XML links into Hotelnet will dramatically increase overseas supply  New website at Eurocamp Independent  Relaunch of Explore website. Podcasts and Weblogs launched last month

18. 18 European specialist holiday group European specialist holiday group Interim Results 2007 OUTLOOK OUTLOOK  Hotel Breaks  Sales intake for Hotel Breaks up 8%  Adventure  Current summer sales up 7%  Camping  Currently over 85% booked for the whole season  In line with plan  Satisfactory trading outcome anticipated

19. Proposed acquisition of PGL, formation of Education division

20. 20 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Highlights  PGL is UK market leader in residential, outdoor education and adventure sector for UK schools  c.250,000 children trips per annum, serve c.4,600 schools  Opportunity for growth  Experienced PGL management team remaining with the business  Creates fourth operating division for Holidaybreak, the Education Division, with good strategic fit

21. 21 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Highlights  Consideration for PGL: c. £50m for equity, with c. £50m debt refinanced  Revenue 2007: £50.6m (2006: £47.0m), EBITDA 2007: £8.4m (2006: £6.8m), EBIT 2007: £6.3m (2006: £5.0m) (1)  Historic underlying revenue growth of 7% p.a. 2005-2007  Property portfolio valued at £93m  Expected to be earnings enhancing in first full financial year of ownership (2)  Good visibility of earnings  Strong repeat booking rates (c. 80%) (3) (1)Stated before exceptional items (2)This statement is not intended to constitute a profit forecast for the financial year ending 30 September 2007 or for any other period. In addition, this statement should not be interpreted to mean that earnings per share (before any one-off costs and amortisation of intangible assets) will necessarily be greater than those for the relevant preceding financial period (3)In PGL’s residential, outdoor education and adventure division in the UK on a historic basis

22. 22 European specialist holiday group European specialist holiday group Proposed acquisition of PGL The UK schools outdoor education and adventure market  Opportunity for growth  Active promotion of benefits of outdoor learning by UK government  Trend towards more outsourcing to commercial operators  Increasing complexity of organising the trips  Health and safety requirements  Reduction in number of LEA centres  Direct funding of schools has reduced LEA financial resources  Schools have greater freedom to choose location and provider of school trips

23. 23 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Information on PGL (1)  Market leader in the UK outdoor education and adventure sector with a strong brand position  Operates in providing residential activity centres, primarily at key stage two level for 8-12 year olds  Runs overseas school tours and ski trips, mainly targeted at secondary school children (12-18 year olds)  Brand respected in the market with 50 years of operation  Operates 26 activity centres, which are on average larger than other operators  UK: 17 sites (13 owned); France: 8 sites (7 owned); Spain: 1 site  c.7,100 beds  PGL offers a wider range of activities

24. 24 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Information on PGL (2)  Attractive financial characteristics  Attractive operating margins  Good visibility of earnings and very early booking profile (>90% to y/e Feb ’08 and c.60% to y/e Feb ’09) (1)  Growth opportunities in the UK and continental Europe, both organically and potentially through acquisition in a fragmented market place  Priority in short term: increase capacity at existing sites and hired-in centres  Currently, PGL works with 13% of primary and 33% of secondary schools within 2 hour drive of its UK centres  Experienced management team, overseen significant change and growth in recent years, remaining with the business (1) Relating to UK Adventure bookings as a proportion of forecast level

25. 25 European specialist holiday group European specialist holiday group  17 Sites in UK  13 owned  4 rented  Well located Dalguise Caythorpe Court Marchant’s Hill (incl. Bethany) Little Canada Osmington Bay Beam House Tregoyd Hillcrest Boreatton Park Barton Hall Loch Ranza Llwyn Filly Fulmer Grange 1 Whitecliff Bay 1 Court Farm PGL UK Centre Locations Proposed acquisition of PGL Overview of PGL sites in the UK Note: 1 Hired PGL Centres Nodes Point 1 Shorefield 1

26. 26 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Strategic rationale  PGL’s strong brand and market leading position consistent with characteristics of Holidaybreak’s other divisions  History of growth and good margins  PGL enjoys a complementary seasonality to Holidaybreak, especially its Camping Division  Efficiencies in recruitment, training and retention of seasonal staff  Utilisation of Camping Division spare capacity during PGL’s peak periods  Enhance Camping Division offering with PGL-supplied activities  Over time, potential to exploit  Complementary marketing and distribution (e.g. Explore’s School Adventure product)  Transfer of management and operational skills (e.g. capacity management)  New product and geographical development (strengthen presence in UK regions with sparse centre coverage, investigate other sites in NW Europe)

27. 27 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Integration plans  PGL to become the fourth operating division of Holidaybreak – Education Division  Martin Davies, PGL’s CEO, to continue in this role post acquisition as MD of Education Division and join Holidaybreak’s plc board  Other senior PGL management to remain  As with existing three divisions, continue to operate relatively autonomously

28. 28 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Summary terms and financial effects of the acquisition  Acquisition to be financed from an increased bank facility  Completion, subject to shareholder approval, expected to occur in June 2007  The acquisition of PGL is expected to:  be earnings enhancing in the first full financial year of ownership (1)  create returns in excess of the Group’s weighted average cost of capital (1) (1) These statements are not intended to constitute a profit forecast for the financial year ending 30 September 2007 or for any other period. In addition, these statements should not be interpreted to mean that earnings per share (before any one off costs and amortisation of intangible assets) will necessarily be greater than those for the relevant preceding financial period.

29. 29 European specialist holiday group European specialist holiday group Proposed acquisition of PGL Summary  Acquisition of PGL for c. £50m, with existing c. £50m debt refinanced  Strong brand and market leading position  Excellent repeat bookings and high visibility of earnings due to very early booking profile  A well located property portfolio  Opportunities for growth  Active promotion of benefits of outdoor learning by UK government  Trend to outsourcing  Reduction in number of LEA centres  Potential to exploit opportunities with existing Holidaybreak group  Acquisition expected to be earnings enhancing in the first full financial year of ownership (1) (1) This statement is not intended to constitute a profit forecast for the financial year ending 30 September 2007 or for any other period. In addition, this statement should not be interpreted to mean that earnings per share (before any one off costs and amortisation of intangible assets) will necessarily be greater than those for the relevant preceding financial period.

30. Appendices

31. 31 European specialist holiday group European specialist holiday group Appendices Illustrative pro forma financial information HOLIDAYBREAKPGLPRO FORMA GROUP Year end30-Sep-0623-Feb-07 PROFIT AND LOSS ACCOUNT Turnover304.550.6355.1 EBITDA46.98.455.3 EBIT34.36.340.6 Profit before taxation32.12.2 Tax rate30.2%(36.1)%c.30.0% Profit after taxation22.43.0 BALANCE SHEET Net assets59.11.3 Net debt3.149.8 £m Notes 1.Sourced from latest available public information (Holidaybreak: Full year results to 30 September 2006, PGL: 12 months to 22 February 2007)

32. 32 European specialist holiday group European specialist holiday group Turnover (£m)Operating profit before exceptional items (£m) Notes 1.Sourced from latest available public information (Holidaybreak: Full year results to 30 September 2006, PGL: 12 months to 22 February 2007) Appendices Pro forma divisional split Before After

33. 33 European specialist holiday group European specialist holiday group Appendices PGL historic financials PGL Year end24-Feb-05 (1) 23-Feb-06 (2) 22-Feb-07 (3) £000 INCOME STATEMENT Turnover35,33247,03850,630 EBITDA2,2526,8168,424 Operating profit (4) 9425,0096,279 BALANCE SHEET Total assets68,81877,34282,217 Net debt13,03847,55949,784 (1) These results reflect the aggregation of the consolidated results and balance sheet of PGL Voyages Limited and subsidiary undertakings and the results of PGL Air Travel Limited. PGL 3D Education and Adventure was acquired by PGL Voyages Limited on 19 July 2004 (2) These results reflect the aggregation of the consolidated results and balance sheet of PGL Group Limited and subsidiary undertakings, the consolidated results and balance sheet of PGL Voyages Limited and subsidiary undertakings and the results of PGL Air Travel Limited. (3) These results reflect the aggregation of the consolidated results and balance sheet of PGL Group Limited and subsidiary undertakings and the results of PGL Air Travel Limited. (4) Before exceptional items Source: Consolidated financial report

34. 34 European specialist holiday group European specialist holiday group Note:YHA Centres estimated based on a sample of ‘Learn4Real’ centres which offer activity programmes. Source: Management Appendices UK adventure centre market UK Residential Activity/Education Centres and Beds: 2007 Number of CentresNumber of Beds LEAs YHA PGL Smaller Independents c. 25% of total beds Medium Sized Operators

35. 35 European specialist holiday group European specialist holiday group Appendices Acquisition accounting  Under IFRS, PGL’s forward order book, customer lists and brand value will be treated as intangible assets and shown at fair value in the balance sheet  Approximate values are:  Brand £12m  Customer lists£3.2m  Order book£0.8m  Intangible assets will be amortised as revenue - approx full year charge will be £0.6m.  The amortisation will be above the operating profit line and will impact reported earnings  It is expected that the amortisation will be detailed as a separate line items on the face of the income statement