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Forbes Magazine Names Travelzoo One of 200 Best Small Companies

Forbes Magazine Names Travelzoo One of the 200 Best Small Companies Internet Media Company Ranked Third on 2005 List of Best-Run Growth Companies

Travelzoo Travelzoo Inc. (NASDAQ: TZOO), the Internet media company that publishes travel offers to more than 9 million subscribers, has been named to the Forbes List of the 200 Best Small Companies. Travelzoo was ranked third overall best small company in its first year on the list.

The Forbes Best 200 Small Companies list honors solid companies which have performed well recently and over the past several years. A "Small Business" by Forbes' standards must have revenues between $5 million and $750 million, net profit margins greater than 5% and, as of September 29, 2005, have stock prices above five dollars in order to receive consideration.

Travelzoo was recognized by Forbes as a "thriving Internet business." Forbes also cited Travelzoo's 75% increase in annual sales and 82% increase in earnings per share over the past five years as another reason for the company's inclusion. Travelzoo was the only Internet media company selected for the list.

"Our list of the 200 Best Small Companies doesn't do flashes in the pan," Forbes reported in both its online and print publications. "It does, however, feature solid and consistent hitters that have performed well when measured over the last 12 months and the past five years, and are poised for another growth spurt."

Travelzoo is the Internet's largest publisher of travel deals. Travelzoo has several media properties in which these outstanding deals are published, including the Top 20(R) list, a weekly e-mail newsletter, SuperSearch(TM), a travel search engine and the Newsflash(TM) e-mail alert service. Travelzoo has more than 30 travel deal experts on staff who carefully review each offer from its more than 500 advertisers to find the best travel deals and confirm their true value.

The announcement by Forbes preceded Travelzoo's third quarter financial results announcement. In the third quarter of 2005, Travelzoo reported advertising revenues of $13.4 million, a 41% percent increase year-over-year. Additionally, Travelzoo reported income from operations of $4.2 million, up 27% year-over-year, operating margin of 31.5% and a net income of $2.3 million. Travelzoo has experienced 29 consecutive quarters of revenue growth.

"It is an honor to be included on this list of the best small companies by such an esteemed publication as Forbes," said Ralph Bartel, chairman and chief executive officer, Travelzoo. "The editors have studied our company and have seen our consistent performance and quality media content we provide to our subscribers."

About Travelzoo

Travelzoo Inc. (NASDAQ: TZOO) is the Internet's largest publisher of outstanding travel offers available directly from hundreds of travel companies. Travelzoo's media properties include the Travelzoo(R) Web site (www.travelzoo.com), the Top 20(R) e-mail newsletter, the Newsflash(TM) e mail alert service and SuperSearch(TM), a travel search engine. With more than 9 million subscribers, Travelzoo lists offers from more than 500 advertisers. Travelzoo's deal experts review each offer to find the best travel deals and confirm their true value.



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