Viad Corp Announces Third Quarter Results; Income from Continuing Operations of $0.42 per Share; Dykstra to Succeed Bohannon as President and CEO of Viad Corp

Robert H. Bohannon, chairman, president and chief executiveofficer said,

"Our strong results for the quarter, which were well above ourprevious guidance range of $0.27 to $0.33 per share, reflect very goodperformance at all of our operating companies. In addition to strongoperating results, we benefited from favorable tax settlements thatalso helped to boost earnings. As compared to the 2004 third quarter,our results reflect negative show rotation totaling $37 million inrevenue at GES and Exhibitgroup. On a year-to-date basis, our growthis very strong. Year-to-date income before impairment losses of $33.4million in 2005 is up 14.0 percent as compared to $29.3 million in2004."

As described in a separate press release issued today, Viadannounced a succession plan in which Bohannon will turn over hisresponsibilities as president and chief executive officer to PaulDykstra on April 1, 2006. Dykstra is currently president and chiefexecutive officer of GES Exposition Services, Inc., a subsidiary ofViad. Bohannon will remain as Viad's chairman of the board ofdirectors.

Impact of Hurricane Katrina

Viad's 2005 third quarter results were negatively impacted by theflooding and damage caused by Hurricane Katrina. Viad's New Orleansfacilities, which housed area operations of GES and Exhibitgroup, havebeen damaged and have been temporarily closed. During the quarter,Viad recorded a loss of $843,000 ($508,000 after tax) related to thenet book value of assets that were damaged as a result of thehurricane.

Hurricane Katrina and related events also impacted exhibition andevent scheduling in the New Orleans area and in other parts of thecountry. Some exhibitions and events scheduled for the New Orleansarea have been cancelled while others have been or will be rescheduledto new locations and dates. Until such time as the New Orleansexhibition and event industry recovers, Viad expects that most majorshows previously scheduled to take place in New Orleans will relocateto other venues.

Viad is in the process of filing claims with its insurancecarriers to recover damages covered by its property and businessinterruption insurance policies. Anticipated recoveries will berecognized when received.

Third Quarter 2005 Financial Highlights

Highlights of the 2005 third quarter, compared to third quarter2004 results, and year-to-date results are presented below.
Q3 2005 Q3 2004 Change
------- ------- ------
(in millions)
Revenue $191.1 $218.6 -12.6%
Segment operating income $16.4 $23.5 -30.4%
Operating margins (1) 8.6% 10.8% -220 bps
Income before impairment losses (3) $9.9 $12.6 -21.3%
Net income (loss) (2) $10.7 $(68.3) NM
Adjusted EBITDA (3) $19.1 $24.4 -21.5%
Cash from operations $24.7 $10.5 NM
Free cash flow (3) $20.6 $7.2 NM
YTD YTD Change
2005 2004
------- ------- -------
(in millions)
Revenue $667.7 $633.5 5.4%
Segment operating income $61.4 $58.6 4.8%
Operating margins (1) 9.2% 9.3% -10 bps
Income before impairment losses (3) $33.4 $29.3 14.0%
Net income (loss) (2) $34.0 $(51.5) NM
Adjusted EBITDA (3) $71.8 $63.4 13.2%
Cash from operations $34.4 $32.8 4.7%
Free cash flow (3) $17.8 $23.5 -24.4%

NM = Not meaningful

(1) For operating margins, the change from the prior year period is
presented in basis points.

(2) Net income in 2005 includes an impairment loss of $508,000, after
tax, related to assets damaged as a result of Hurricane Katrina
and income from discontinued operations, which primarily consists
of $1.3 million in the third quarter relating to favorable state
tax settlements. Net income in 2004 includes impairment losses of
$80.8 million, after tax, relating to goodwill and intangible
assets at Exhibitgroup/Giltspur.

(3) Income before impairment losses is defined by Viad as income from
continuing operations before asset impairments. Adjusted EBITDA
is defined by Viad as net income before interest expense, income
taxes, depreciation and amortization, asset impairments, changes
in accounting principles and the effects of discontinued
operations. Free cash flow is defined by Viad as net cash provided
by operating activities minus capital expenditures and dividends.
Income before impairment losses, Adjusted EBITDA and free cash
flow are supplemental to results presented under accounting
principles generally accepted in the United States of America
(GAAP) and may not be comparable to similarly titled measures
presented by other companies.

These non-GAAP measures are used by management to facilitate
period-to-period comparisons and analysis of Viad's operating
performance and liquidity. Free cash flow is also used by
management to assess the company's ability to service debt, fund
capital expenditures and finance growth. Management believes these
non-GAAP measures are useful to investors in benchmarking and
trending the performance and value of Viad's business. These
non-GAAP measures should be considered in addition to, but not as
a substitute for, other similar measures reported in accordance
with GAAP. See Table Two for reconciliations of income from
continuing operations to income before impairment losses, of net
income to Adjusted EBITDA, and of net cash provided by operating
activities to free cash flow.

At the end of the third quarter 2005:

-- Cash and cash equivalents were $143.7 million.

-- Debt totaled $17.8 million, with a debt-to-capital ratio of 4.3 percent.

GES Exposition Services (GES)

GES' revenue for the third quarter of 2005 was $119.6 million,down $21.2 million or 15.0 percent from $140.7 million in the thirdquarter 2004, due to negative show rotation. Segment operating incomewas $1.5 million as compared to $11.6 million in 2004.

Bohannon said, "As expected, the declines versus the 2004 thirdquarter were due to show rotation, which negatively impacted GES'revenue by nearly $27 million. This was partially offset by stronggrowth in GES' base shows, driven by the Products and Services groupand continued improvement in the exhibition and event industry. Forthe year-to-date, revenue has increased 6.0 percent. GES is performingvery well on the top line, but certain challenges, including high fuelcosts, continue to weigh on GES' margins."

Exhibitgroup/Giltspur (Exhibitgroup)

Exhibitgroup's third quarter revenue was $27.3 million, down $10.9million or 28.5 percent from $38.1 million in the 2004 third quarter,due to negative show rotation. Segment operating results improved to aloss of $4.2 million, as compared to a loss of $4.9 million in the2004 third quarter.

Bohannon said, "Exhibitgroup continues to do a great job ofimproving its gross margins and its overall cost structure. This isevident in the improved operating results on a revenue decrease of28.5 percent. This revenue decrease was expected and was driven bynegative show rotation revenue of approximately $10 million from aEuropean airshow. That airshow occurred in the second quarter thisyear as compared to the third quarter in 2004. Year-to-date,Exhibitgroup has improved its operating results by $3.8 million onessentially flat revenue."

Travel and Recreation Services

Travel and Recreation Services segment revenue for the 2005 thirdquarter was $44.3 million, up $4.6 million or 11.5 percent, ascompared to $39.7 million in the 2004 third quarter. Segment operatingincome was $19.1 million, up $2.1 million or 12.6 percent, as comparedto $16.9 million in the 2004 third quarter. Operating margins were43.1 percent compared to 42.6 percent in 2004.

Bohannon said, "Both Brewster and Glacier Park contributed to thissegment's strong growth in the quarter. Brewster's growth was drivenmainly by increased passengers on the gondola, an increase inoccupancy at the Mount Royal Hotel and increased revenue per passengeron the ice field tours. Glacier Park, which has now closed for theseason, had another record year in terms of occupancy and revenue."

2005 Outlook

Guidance provided by Viad is subject to change as a variety offactors can affect actual operating results. Those factors areidentified in the safe harbor language at the end of this pressrelease.

Viad's guidance for the full year 2005 has been increased as aresult of the strong third quarter results, including favorable taxsettlements. Full year income before impairment losses is now expectedto be in the range of $1.38 to $1.42 per share, versus prior guidanceof $1.23 to $1.34 per share, and compared to income before impairmentlosses of $1.07 per share in 2004. Fourth quarter guidance has beenreduced slightly to a loss of $0.08 to $0.12 per share as compared toprior guidance of a loss of $0.05 to $0.10 per share. This slightchange is primarily related to the impact of recent hurricane activityon tradeshows in the Southeast.

Full year revenue is expected to increase by a low to mid-singledigit rate from the 2004 amount of $785.7 million. Full year segmentoperating income is expected to increase by a mid-single digit tolow-teens rate from $53.4 million in 2004. This improvement isexpected to be driven mainly by cost reductions and improved marginsat Exhibitgroup.

Viad's full year guidance is based upon the following segmentrevenue and operating income expectations.
Segment Segment
Revenue Operating Income (Loss)
----------------------- -----------------------
low-end high-end low-end high-end
($ in millions)

GES $565 to $575 $43.0 to $44.0
Exhibitgroup $175 to $180 $(5.0) to $(3.5)
Travel & Recreation $72 to $73 $19.5 to $20.0

Bohannon said, "We've realized strong growth in earnings duringthe first nine months of 2005 as a result of good performance acrossall of our operating segments. Exhibitgroup's improved operatingresults are especially impressive. Going forward, we remain focused oncost control, operational improvements and revenue initiatives topreserve our strong year-to-date growth. For the full year, we expectto produce growth of about 30 percent in earnings and earnings pershare."

Conference Call and Web Cast

Viad Corp will hold a conference call with investors and analystsfor a review of third quarter 2005 results on Friday, October 28, 2005at 9 a.m. (EDT). To join the live conference call, dial (800)474-8920, passcode 6364176, or access the webcast through Viad's Website at www.viad.com. A replay will be available for a limited time at(888) 203-1112, passcode 6364176, or visit the Viad Web site and linkto a replay of the webcast.

Viad is an S&P SmallCap 600 company. Major subsidiaries includeGES Exposition Services of Las Vegas, Exhibitgroup/Giltspur ofChicago, Brewster Transport Company Limited of Banff, Alberta, Canada,and Glacier Park, Inc. of Phoenix. For more information, visit thecompany's Web site at www.viad.com.

Forward-Looking Statements

As provided by the safe harbor provision under the "PrivateSecurities Litigation Reform Act of 1995," Viad cautions readers that,in addition to historical information contained herein, this pressrelease includes certain information, assumptions and discussions thatmay constitute forward-looking statements. These forward-lookingstatements are not historical facts, but reflect current estimates,projections, expectations, or trends concerning future growth,operating cash flows, availability of short-term borrowings, consumerdemand, new business, investment policies, productivity improvements,ongoing cost reduction efforts, efficiency, competitiveness, legalexpenses, tax rates and other tax matters, and the realization ofrestructuring cost savings. Actual results could differ materiallyfrom those projected in the forward-looking statements. Viad'sbusinesses can be affected by a host of risks and uncertainties. Amongother things natural disasters, gains and losses of customers,consumer demand patterns, labor relations, purchasing decisionsrelated to customer demand for convention and event services, existingand new competition, industry alliances, consolidation, and growthpatterns within the industries in which Viad competes and anydeterioration in the economy may individually or in combination impactfuture results. In addition to factors mentioned elsewhere, economic,competitive, governmental, technological, capital marketplace andother factors, including further terrorist activities or war, couldaffect the forward-looking statements in this press release.Additional information concerning business and other risk factors thatcould cause actual results to materially differ from those in theforward-looking statements can be found in Viad's annual and quarterlyreports filed with the Securities and Exchange Commission.

Information about Viad Corp obtained from sources other than thecompany may be out-of-date or incorrect. Please rely only on companypress releases, SEC filings and other information provided by thecompany, keeping in mind that forward-looking statements speak only asof the date made. Viad undertakes no obligation to update anyforward-looking statements, including prior forward-lookingstatements, to reflect events or circumstances arising after the dateas of which the forward-looking statements were made.
VIAD CORP AND SUBSIDIARIES
TABLE ONE - QUARTERLY AND YEAR-TO-DATE RESULTS
(UNAUDITED)


Three months ended
September 30,
---------------------------
(000 omitted, except per
share data) 2005 2004 %
--------- --------- ------


Revenues (Note A) $191,137 $218,581 -12.6%
========= ========= ======


Segment operating income (Note A) $16,366 $23,529 -30.4%
Corporate activities and minority
interests (4,103) (4,085) -0.4%
Restructuring recoveries (charges),
net (Note B) 230 (850) NM
Impairment losses (Note C) (843) (87,408) 99.0%
Net interest income (expense) 348 (394) NM
--------- --------- ------
Income (loss) before income taxes 11,998 (69,208) NM
Income tax (expense) benefit (2,627) 933 NM
--------- --------- ------
Income (loss) from continuing operations 9,371 (68,275) NM
Income from discontinued operations
(Note D) 1,328 - NM
--------- --------- ------
Net income (loss) $10,699 $(68,275) NM
========= ========= ======

Diluted income (loss) per common share:
Income (loss) from continuing operations $0.42 $(3.14) NM
Income from discontinued operations 0.06 - NM
--------- --------- ------
Net income (loss) per share $0.48 $(3.14) NM
========= ========= ======

Basic income (loss) per common share:
Income (loss) from continuing operations $0.42 $(3.14) NM
Income from discontinued operations 0.06 - NM
--------- --------- ------
Net income (loss) per share $0.48 $(3.14) NM
========= ========= ======

Common shares treated as outstanding for
net income per share calculations:

Average outstanding shares 22,135 21,767 1.7%
========= ========= ======

Average outstanding and potentially
dilutive shares 22,345 21,767 2.7%
========= ========= ======


Nine months ended
September 30,
--------------------------
(000 omitted, except per
share data) 2005 2004 %
--------- --------- ------


Revenues (Note A) $667,680 $633,514 5.4%
========= ========= ======


Segment operating income (Note A) $61,422 $58,613 4.8%
Corporate activities and minority interests (9,869) (10,442) 5.5%
Restructuring recoveries (charges),
net (Note B) 593 (1,703) NM
Impairment losses (Note C) (843) (87,408) 99.0%
Net interest income (expense) 760 (1,000) NM
--------- --------- ------
Income (loss) before income taxes 52,063 (41,940) NM
Income tax (expense) benefit (19,181) (9,594) -99.9%
--------- --------- ------
Income (loss) from continuing operations 32,882 (51,534) NM
Income from discontinued operations (Note D) 1,160 - NM
--------- --------- ------
Net income (loss) $34,042 $(51,534) NM
========= ========= ======

Diluted income (loss) per common share:
Income (loss) from continuing operations $1.48 $(2.37) NM
Income from discontinued operations 0.05 - NM
--------- --------- ------
Net income (loss) per share $1.53 $(2.37) NM
========= ========= ======

Basic income (loss) per common share:
Income (loss) from continuing operations $1.50 $(2.37) NM
Income from discontinued operations 0.05 - NM
--------- --------- ------
Net income (loss) per share $1.55 $(2.37) NM
========= ========= ======

Common shares treated as outstanding for
net income per share calculations:

Average outstanding shares 22,028 21,726 1.4%
========= ========= ======

Average outstanding and
potentially dilutive shares 22,211 21,726 2.2%
========= ========= ======

NM = not meaningful
VIAD CORP AND SUBSIDIARIES
TABLE ONE - NOTES TO QUARTERLY AND YEAR-TO-DATE RESULTS
(UNAUDITED)

(A) Reportable Segments
Three months ended
September 30,
---------------------------
(000 omitted) 2005 2004 %
--------- --------- ------

Revenues:
GES Exposition Services $119,591 $140,745 -15.0%
Exhibitgroup/Giltspur 27,279 38,129 -28.5%
Travel and Recreation Services 44,267 39,707 11.5%
--------- --------- ------
$191,137 $218,581 -12.6%
========= ========= ======

Segment operating income (loss):
GES Exposition Services $1,545 $11,554 -86.6%
Exhibitgroup/Giltspur (4,236) (4,947) 14.4%
Travel and Recreation Services 19,057 16,922 12.6%
--------- --------- ------
$16,366 $23,529 -30.4%
========= ========= ======

Nine months ended
September 30,
-------------------------
(000 omitted) 2005 2004 %
--------- --------- -----

Revenues:
GES Exposition Services $468,361 $441,700 6.0%
Exhibitgroup/Giltspur 132,228 130,834 1.1%
Travel and Recreation Services 67,091 60,980 10.0%
--------- --------- -----
$667,680 $633,514 5.4%
========= ========= =====

Segment operating income (loss):
GES Exposition Services $44,441 $46,225 -3.9%
Exhibitgroup/Giltspur (4,079) (7,880) 48.2%
Travel and Recreation Services 21,060 20,268 3.9%
--------- --------- -----
$61,422 $58,613 4.8%
========= ========= =====

(B) Restructuring Charges and Recoveries -- In the third quarter of
2005, Viad reversed a net of $230,000 ($132,000 after-tax) of the
restructuring reserves related to certain lease costs that were
less than original estimates. Additionally, in the first and
second quarters of 2005, a total of $363,000 ($219,000 after-tax)
of reserves was also reversed. In the second quarter of 2004,
Viad recorded a restructuring charge of $853,000 ($530,000 after-
tax) primarily related to planned employee reductions and in the
third quarter of 2004 a charge of $850,000 ($530,000 after-tax)
related to the consolidation of leased office space.

(C) Impairment Losses -- In the third quarter of 2005, GES' operations
in New Orleans were severely impacted by Hurricane Katrina and the
related events that occurred. Management has made an estimate of
the damage to GES' New Orleans property and has recorded an asset
impairment loss related to the net book value of fixed assets and
inventory of $843,000 ($508,000 after-tax). In the third quarter
of 2004, Viad recorded impairment charges related to Exhibitgroup
of $80.4 million ($76.6 million after-tax) and $7.0 million ($4.2
million after-tax) related to goodwill and the intangible
trademark asset, respectively.

(D) Income from Discontinued Operations -- In the third quarter of
2005, Viad recorded income from discontinued operations of $1.3
million due to favorable tax settlements. In the first and second
quarters of 2005, Viad recorded an aggregate loss from
discontinued operations of $168,000 relating to tax matters
associated with previously sold operations.
VIAD CORP AND SUBSIDIARIES
TABLE TWO - INCOME BEFORE IMPAIRMENT LOSSES, ADJUSTED EBITDA
AND FREE CASH FLOW
(UNAUDITED)


Three months ended
September 30,
--------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Income before impairment losses:
Income (loss) from continuing operations $9,371 $(68,275) NM
Impairment losses, net of tax 508 80,831 -99.4%
-------- --------- ------
Income before impairment losses $9,879 $12,556 -21.3%
======== ========= ======

Three months ended
September 30,
--------------------------
(per diluted share) 2005 2004 %
-------- --------- ------

Income before impairment losses:
Income (loss) from continuing operations $0.42 $(3.14) NM
Impairment losses, net of tax 0.02 3.71 -99.5%
-------- --------- ------
Income before impairment losses $0.44 $0.57 -22.8%
======== ========= ======

Three months ended
September 30,
--------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Adjusted EBITDA:
Net income (loss) $10,699 $(68,275) NM
Income from discontinued operations (1,328) - NM
-------- --------- ------
Income (loss) from continuing operations 9,371 (68,275) NM
Impairment losses 843 87,408 99.0%
Interest expense 713 776 8.1%
Income tax expense (benefit) 2,627 (933) NM
Depreciation and amortization 5,585 5,398 -3.5%
-------- --------- ------
Adjusted EBITDA $19,139 $24,374 -21.5%
======== ========= ======

Three months ended
September 30,
--------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Free Cash Flow:
Net cash provided by operating activities $24,719 $10,520 NM
Less:
Capital expenditures (3,275) (3,292) 0.5%
Dividends paid (886) - NM
-------- --------- ------
Free cash flow $20,558 $7,228 NM
======== ========= ======

Nine months ended
September 30,
-------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Income before impairment losses:
Income (loss) from continuing operations $32,882 $(51,534) NM
Impairment losses, net of tax 508 80,831 -99.4%
-------- --------- ------
Income before impairment losses $33,390 $29,297 14.0%
======== ========= ======

Nine months ended
September 30,
-------------------------
(per diluted share) 2005 2004 %
-------- --------- ------

Income before impairment losses:
Income (loss) from continuing operations $1.48 $(2.37) NM
Impairment losses, net of tax 0.02 3.72 -99.5%
-------- --------- ------
Income before impairment losses $1.50 $ 1.35 11.1%
======== ========= ======

Nine months ended
September 30,
-------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Adjusted EBITDA:
Net income (loss) $34,042 $(51,534) NM
Income from discontinued operations (1,160) - NM
-------- --------- ------
Income (loss) from continuing operations 32,882 (51,534) NM
Impairment losses 843 87,408 99.0%
Interest expense 1,872 1,734 -8.0%
Income tax expense (benefit) 19,181 9,594 -99.9%
Depreciation and amortization 16,988 16,195 -4.9%
-------- --------- ------
Adjusted EBITDA $71,766 $63,397 13.2%
======== ========= ======

Nine months ended
September 30,
-------------------------
(000 omitted) 2005 2004 %
-------- --------- ------

Free Cash Flow:
Net cash provided by operating activities $34,359 $32,810 4.7%
Less:
Capital expenditures (13,921) (9,266) -50.2%
Dividends paid (2,649) - NM
-------- --------- ------
Free cash flow $17,789 $23,544 -24.4%
======== ========= ======

NM = not meaningful