FORT WORTH, Texas, Aug. 15 -- Sabre Holdings Corporation (NYSE: TSG) announced today that it has acquired Gradient Solutions Limited, a Dublin, Ireland-based technology company that provides e-commerce solutions to the global travel marketplace. The acquisition further boosts Sabre's leadership position in online travel booking and distribution.

"This is one more step by Sabre to broaden our online travel distribution capabilities with enhanced support, services and products," said Eric Speck, Sabre's group president of Travel Marketing and Distribution. "We believe that our combined customer base will reap the benefits of market speed and responsiveness with the resources and support of an established e-commerce solution provider."

Gradient Solutions enhances Sabre's existing leading-edge Web development expertise and technology, as well as online distribution solutions, by bringing an international and highly customizable online booking engine. The company expects the addition will enhance its customer base and product offerings in Europe and elsewhere. Hosting capabilities have also been extended, with the new group having two advanced data centers, one located in Europe with the other in the U.S. Gradient's technologies provide tools for multi-language and multi-currency needs and offer the ability to connect to multiple global distribution systems.

Gradient Solutions develops and hosts customized solutions for major travel companies, including online travel agencies, airlines and other travel suppliers enabling business-to-business and business-to-consumer e-commerce via the Internet.

An employee base, operating from six offices spanning the Americas, Europe and Asia Pacific, will combine the regional resources of both organizations to better serve customers worldwide.

"Many of Gradient Solutions and Sabre's key strengths are complementary, including geographic location, customers and employees, which creates a synergy of resources in the online travel marketplace," said Gerry Samuels, joint chief executive officer and commercial director of Gradient Solutions. "By combining such strengths, we can create new business opportunities and improve our product offering to customers around the world."

With the acquisition, the combined customer base will include: KLM Royal Dutch, Austrian Airlines, Thomas Cook, Swissair, The Qualiflyer Group, Cheap Tickets, US Airways, Sabena, STA Travel, Volando.com, among others.

According to Forrester Research, Inc., online travel distribution in the U.S. is expected to reach $29.4 billion by 2003, nearly four times the 1999 level. In addition, Forrester states that even though online travel is still in its infancy, travel products are sold over the Internet more than any other consumer product. The dollar volume of travel sales on the Web currently surpasses that of software, books, music, apparel, games, toys, videos and sporting goods combined. Jupiter Communications estimates that online travel spending in Western Europe will increase nearly 10-fold from 1999 to 2003 to 10 billion Euros (1 U.S. dollar equals approximately 1.1 Euros).

Gradient Solutions will operate as a separate subsidiary and remain in Dublin, with personnel -- including the company founders, Gerry Samuels and Stuart Coulson -- remaining with Gradient. This acquisition represents Sabre's latest step in increasing its focus on the European marketplace. In June, Sabre entered into an agreement to acquire a 51% stake in Dillon Communication Systems (DCS) located in Hamburg, Germany. Together, DCS and Sabre now have a combined market share of 30% of all German travel agency locations.

Details of the transaction were not disclosed.

About Sabre

Sabre is the global leader in applying information technology to meet the needs of the travel and transportation industries with advanced and innovative technology skills to deliver progressive solutions. Headquartered in Dallas/Fort Worth, Texas, the company has more than 10,000 employees worldwide who span 45 countries. Sabre reported 1999 revenues of $2.4 billion, up 5.6 percent from 1998. Net earnings excluding special items were $264 million, up 15.2 percent from the prior year. More information on Sabre is available on the World Wide Web at http://www.sabre.com. Sabre and the Sabre logo are registered trademarks of an affiliate of Sabre Inc.

About Gradient Solutions

Founded in 1997, Gradient Solutions is a travel e-Commerce specialist, providing a range of products, solutions, infrastructure and services. Gradient Solutions develops, customises and hosts e-Commerce platforms that expertly address the complexities of international travel booking and distribution and simplify direct sales to end customers via the Internet and wireless applications.

Gradient Solutions' customers are major airlines and travel companies, including seven of Europe's top national carriers. Gradient Solutions' development and hosting activities are based in Dublin, Ireland and supplemented by a satellite development center and sales locations. For more information, visit www.gradient.ie.

Statements in this news release that are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth, are forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements in this release are based upon information available to Sabre on the date of this release. Any forward looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward looking statements, including risks related to: maintaining existing Gradient Solutions' customer and employee relationships; competition and technological innovation by competitors; risks related to Sabre's technology, including the integration of the Gradient Solutions technology; seasonality of the travel industry and booking revenues; sensitivity to general economic conditions and events that affect airline travel; risks associated with Sabre's international operations; and legal and regulatory issues. Further information regarding factors that could affect Sabre's financial and other results is included in Sabre's filings with the Securities and Exchange Commission. Sabre undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.