February 6, 2001

To our shareholders:

We are pleased to announce that we have filed a registration  statement with the
U.S. Securities and Exchange Commission to register the shares of Travelzoo.

In  connection  with this  registration,  we plan to merge our existing  Bahamas
corporation into a new Delaware corporation, Travelzoo Inc. Our business will be
continued without interruption by the new company. The SEC registration, on Form
S-4,  relates  to the  shares of the new  company  which are to be issued in the
merger  in  exchange  for the  currently  outstanding  shares  of  Travelzoo.com
Corporation. The details of the proposed merger are explained in the preliminary
proxy statement and prospectus which is included in the registration statement.

A copy of the registration statement is available at www.travelzoo.com/delaware.
It is also available for free at the Commission's  website at www.sec.gov.  This
release does not  constitute an offer to sell or a  solicitation  of an offer to
purchase any securities.

We  encourage  you  to  review  the  registration   statement,   which  contains
information which is important to you as a Travelzoo shareholder.

Sincerely yours,

Travelzoo