euro adhoc: TUI AG / Earnings Forecast / Ad-hoc announcement according to § 15 WpHG (German Stock Trading Law) (E)

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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14.12.2006

Hanover, 14 December 2006. Against the background of the deterioration in
earnings in 2006, in particular in the shipping division, TUI AG announces:

The Supervisory Board of TUI AG has approved the plan submitted by the Executive
Board for the next few years and in this context also approved a comprehensive
action plan to improve earnings in tourism. Besides measures for further growth
in the airline, internet and hotel businesses, a comprehensive cost-cutting
programme totalling 250 million euros by 2008 was resolved. The cost of
materials will be cut by around 150 million euros, with personnel costs reduced
by around 100 million euros. The plan also includes cutting around 3,600 jobs in
the tourism division. The expected restructuring costs of 140 million euros will
be carried in the balance sheet for 2006 to the largest extent possible.

Against the background of the currently difficult market situation in particular
in the shipping division, TUI has specified its medium-term profit targets. In
the shipping division, a considerable improvement in earnings is expected due to
the non-recurrence of the integration costs and the onset of the synergy
effects. In combination with notable volume growth, an earnings level of 400 to
500 million euros is planned for 2008. Due to the persistent pressure on margins
in tourism, the Executive Board considers earnings of 450 to 550 million euros
in 2008 as realistic. In the tourism division, the Executive Board considers it
probable that a restatement of goodwill may be required due to the changes in
earnings expectations.

At the same time, TUI has launched a new programme for a further reduction in
debt and an associated reduction in capital tied up in the Group. For the
shipping division, the decision was taken to sell a harbour terminal in
Montréal, Canada, and several small ships owned by CP Ships, some of which have
been chartered out. In addition, the divestment of real estate not required for
operative purposes has been planned. The total cash potential resulting from
these measures is around one billion euros. For 2008, TUI thus expects net debt
of around 2.5 billion euros. Additional debt reduction potential will result
from the cash flow from operating activities.

Moreover, the TUI AG Supervisory Board has authorised the Executive Board to
prepare the annual financial statements for 2006 on the assumption that a
dividend will not be paid. Servicing of the Group’s hybrid bond will not be
affected. For the 2007 financial year, a significant improvement of Group
earnings is expected and in this regard dividends are assumed to be paid again.

Further details concerning the resolutions adopted at the Supervisory Board
meeting will be announced on Friday, 15 December 2006, 10:00 a.m. (CET).

Address:
TUI AG
Karl-Wiechert-Allee 4
30625 Hanover
Germany

List of stock exchanges:
Berlin/Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München, Stuttgart

ISIN codes:
DE000TUAG000
DE0003659884
DE0002913894
XS0191794782
XS0191795672
XS0195307367
DE000TUAG059
XS0237431837
XS0237433700
XS0237435317
XS0237436711

End of ad-hoc notice

If we comment on forecasts or expectations in this announcement or if our
statements relate to the future, these statements may be associated with known
and unknown risks and uncertainties. Actual outcomes and developments may,
therefore, deviate significantly from the expressed expectations and
assumptions. In addition, the performance of financial markets and exchange
rates as well as national and international law amendments, particularly with
regard to tax regulations, may have an influence. Except as provided by law, the
company assumes no obligation to update future statements.

Further inquiry note:
Björn Beroleit, phone +49 (0)511 - 566 1310
Nicola Gehrt, phone +49 (0)511 - 566 1435

end of announcement euro adhoc 14.12.2006 21:55:26
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emitter: TUI AG
Karl-Wiechert-Allee 4
D-30625 Hannover
phone: +49(0)511 566 - 1425
FAX: +49(0)511 566 - 1096
mail: [email protected]
WWW: http://www.tui-group.com
ISIN: DE000TUAG000
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse,
official dealing: Börse Berlin-Bremen, Hamburger Wertpapierbörse,
Baden-Württembergische Wertpapierbörse, Börse Düsseldorf,
Niedersächsische Börse zu Hannover, Bayerische Börse
sector: Transport
language: English

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