Universal Travel Group's subsidiary Shenzhen Yu Zhi Lu Aviation Service Company has entered into an agreement to buy 90% of one of the largest travel agencies in Tianjin, Tianjin Golden Dragon.

The purchase price for this majority stake will be US$7,889,000, of which US$3,600,000 will be paid in cash and US$4,289,000 will be satisfied by the issuance of 1,053,800 shares of Universal Travel stock. The cash portion will be paid in two installments. The first payment of US$2.2 million will be made within one year of the closing of the acquisition and the remaining US$1.4 million will be paid within two years of the closing, in accordance with a promissory note to be issued by Universal Travel Group at the closing of the acquisition.

Established in 1995, Tianjin Golden Dragon specializes in domestic and international tour packaging. The company reported unaudited sales revenue of US$16.17 million and net income of US$1.13 million in its fiscal year for 2006. Golden Dragon offers several specialized package tours to Hunan, Changsha, Shaoshan, Kunming, Dali and Lijiang. The company also organizes tour packages for holidays and special events, such as an Olympics tour in support of the 2008 games, "Wedding Tours" to celebrate honeymoons and "Parents' Tours" designed for families to travel together.

Universal Travel Group's Chairwoman and CEO Jiangping Jiang said, "The majority position with Golden Dragon cements our commitment to the packaged tour market in China, which was established with our acquisitions of Xi'an Golden Net and Shanghai Lanbao earlier this year. We hope to close this transaction by the end of 2007 to ensure our company's competitive edge as we continue to integrate all five subsidiaries. We expect that the packaged tours segment will drive the growth of the air ticketing and hotel reservation segments in the future."

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