FUN FREEDOM PROSPERITY

Current Operations
YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc.

The three distinct, wholly-owned subsidiary divisions operate as follows:  

YourTravelBiz.com, Inc. (and subsidiaries)
YourTravelBiz.com, Inc. (“YTB Marketing”) conducts business through recruitment, enrollment, training, and support of its sales force. There are currently approximately 254,864 (as of 9/30/07) independent contractors, known as Independent Marketing Representatives (each, an “IMR”), who are responsible for selling on-line travel agencies to RTAs, most of whom work from their homes. IMRs are compensated via a multilevel marketing commission structure. An IMR might utilize a number of methods for attracting new RTAs, including the use of informational meetings and events, newspaper advertising, and one-on-one meetings with individuals seeking a home-based business enterprise. 

YTB Marketing was created to market travel agency websites to RTAs in a referral marketing program that incentivizes IMRs to sell on-line travel agencies. RTAs are also independent contractors and are provided with training materials and onsite training at various locations throughout the United States. YTB Marketing charges an initial license feel of $449.95 plus $49.95 per month, on a month-to-month basis, for RTAs to own and operate an online travel site, and YTB Travel (as defined below) can also earn additional transactional compensation from travel purchased off each website.  

YTB Travel Network, Inc. (and its subsidiaries)
YTB Travel Network, Inc. (together with its subsidiary YTB Travel Network of Illinois, Inc., collectively, “YTB Travel”) business is comprised of arrangements to sell airline tickets, cruise packages and other services, plus travel sales, from the approximately 120,948 (as of 9/30/07) RTAs’ web sites which it hosts. YTB Travel handles travel processing, document distribution and travel commission payments, including tracking transactions for each of the sites. RTAs are schooled through travel training courses. This training is accomplished through a combination of company conference calls, e-training modules and hands-on certification seminars.

REZconnect Technologies, Inc.  
REZconnect Technologies, Inc. (“Technologies”) includes a “brick and mortar” travel franchise system and provides YTB technology software and services to the travel industry. Technologies builds reservation systems using proprietary applications for suppliers within the travel industry. Technologies sells and services travel stores within the travel industry and includes RezCity.com, an online city guide and travel store. Technologies operates under the following brands: Travel Network, Global Travel Network and Travel Network/Vacation Central. The Technologies’ consumer driven websites provide strong content and booking ability, with over 60 booking engines incorporated into any one site, covering all aspects of the travel industry.