Annual Report 2009

21

Mission StatementGlobal Expeditions is committed to responsible travel and true sustainability. It

was a commitment formed when the company was established, and today, in the

face of a multitude of threats to the environment, our commitment is stronger

than ever. We aim to ensure that our destinations retain their natural character

and cultural diversity for future generations. This vision can only be achieved

with the support of all of our travelers and business partners.

To Our StockholdersAs we near the completion of our third year as a public company and our 50th year as a business enterprise, it is gratifying

to share the substantial achievements of the past year, especially in the context of a difficult external environment. Con-

sumers, investors, and businesses have had to deal with or sort out challenges including geopolitical issues and unrest, a

continuation of stunning disclosures by several respected companies regarding questionable business practices, a domestic

economy fighting recession, and extreme weather patterns that yielded record heat and drought, followed by record levels

of rain, ice, and snow in many parts of the country. The costs these conditions generated are hard to quantify but are surely

significant to most retail businesses. Another challenging dynamic more easily quantified, which Global Expeditions faced,

is the rising cost of our insurance coverage’s, such as group medical, workers’ compensation, and property and casualty. It

has not been our practice to discuss the challenges we’ve had to face. We tend to focus primarily on results and opportuni-

ties. This past year, however, it doesn’t give enough credit to the efforts of our people were it not done in the context of the

unusually difficult business environment. With this in mind, we are proud to share the following achievements and mile-

stones:

• Sales of $778.6 million, a 28 percent increase over last fiscal year.

• Net income of $39.1 million, up 51.6 percent over last fiscal year.

• New partnerships with the World Wildlife Fund and the Himalayan Trust.

• Entry into two new markets in Africa and Asia.

• Achieving a 24.0 percent national market share of adventure travel services versus 6.4 percent one year ago.

• Successfully rolling out our new extreme trekking expeditions.

• Assisting nonprofit organizations in raising over $43 million through our fundraising programs.

• Continuing to set new records of operating performance in each of our business segments.

It also was a year highlighted by our continued investment in Global Expedition’s future. These investments, particularly

in a challenging year, demonstrate our commitment to the long term. They also are illustrative of our commitment to a

strategic philosophy, which includes these beliefs:

• Offering innovative trips that are second to none.

• Supporting local people and their economies.

• Contributing to conservation by partnering with local and international groups devoted to environmental causes.

• Environmental philosophy of minimal impact travel.

• Giving something back to the communities we visit.

These investments include the introduction of our new and exciting expeditions, innovations in equipment and training,

launching our international expansion, and the acquisition of a kindred business that will one day create new growth

opportunities. The story of these initiatives is on the pages that follow. We realize our accomplishments to date are now

history. We believe that a healthy relationship is not based on the past but rather on the potential the future holds. We do

hope, however, that the achievements of our people have earned your confidence, and we hope our commitment to the

long-term success of Global Expeditions will encourage your long-term participation as a shareholder.

Warmestpersonalregards,

Scott Porter, Chairman of the Board

3 4

Company HistoryGlobal Expeditions is one of the world’s oldest adventure travel companies. Origi-

nating as a Himalayan trekking company in 1960, we have developed into one of

the leading authorities in the field of adventure tourism. Our product range has

expanded significantly since we first offered trips to Nepal and India in the 70s.

We now cover all continents, with trips ranging from sea kayaking and mountain-

eering trips to culinary touring and family oriented adventures.

Regions of the WorldWe offer unique small group adventures to the four corners of the globe. From

the volcanic landscapes of Kamchatka, to the wonderful sounds and vibrant

colors of Cuba, from the hauntingly beautiful icebergs of Antarctica to the roll-

ing hills of Tuscany, Global Expeditions continues to offer innovative trips to the

world’s far-flung destinations. We are committed to finding the perfect destination

for all types of adventure enthusiasts. We have earned this reputation through

the unique experiences that we provide in the field, through our environmental

philosophy of minimal impact travel, and for the very special quality of giving

something back to the communities we visit.

Financial HighlightsThe magnitude of several of the year’s accomplishments is best illustrated by their

impact on our year over year improvement in financial results, which also exempli-

fies our consistent focus on the core strategies that create the greatest leverage on

our business model.

Dollars in thousands, except share amounts FY04 FY05 FY06 FY07 FY08 vs. FY07

Earnings/Share .15 .27 .44 .66 48.9%

Net Income 5,956 14,725 25,820 39,146 51.6%

Revenue 220,243 300,715 386,460 491,549 27.2%

System wide Sales 318,854 448,129 608,485 778,573 28.0%

Operating Margin % 4.9 7.8 10.6 14.0 3.4 ppts.

SalesDollars in thousands

2004 $240,316

2005 $318,854

2006 $448,129

2007 $621,665

2008 $778,573

RevenueDollars in thousands

2004 $180,880

2005 $220,243

2006 $300,715

2007 $394,354

2008 $491,549

Net IncomeDollars in thousands

2004 $2,513

2005 $5,956

2006 $14,725

2007 $26,378

2008 $39,146

Improvement

0 100 200 300 400 500 600 700 800

Net Income

Revenue

Sales

2004

2005

2006

2007

2008

65

Responsible Travel • Maximize the positive effects of tourism on the host communities by employing local staff, using

local suppliers and developing sustainable businesses.

• Minimize the negative effects of tourism by ensuring that it does not divert resources away from

local communities.

• Provide opportunities for cultural exchange, where we share and learn from the local communities.

• Contribute towards host community welfare by engaging in partnerships with local agencies to

develop programs that can assist with the health, education or environmental protection of

host communities.

• Increase your knowledge of the destination in order to encourage appropriate behavior and

minimize the cultural and environmental impact.

Giving Something Back Global Expeditions is committed to responsible travel and true sustainability. It was a commitment formed

when the company was established, and today, in the face of a multitude of threats to the environment, our

commitment is stronger than ever. We strive to ensure that our destinations retain their natural character and

cultural diversity for future generations. We encourage sustainable travel by utilizing services and support

conservation and preservation of natural resources. Our vision is shared with our travelers, business partners

and vendors. We have established a set of environmental objectives and practices and how you can play a

part in reducing the impact on environments and cultures around the world. For more details, visit our Web

site to download a PDF of our award winning handbook, The Responsible Global Travel Guide. Our respon-

sible tourism policy commits us to the following principles:

Company Philosophy

Environmental Sustainability • Ensure that the natural and cultural values of the regions in which we

operate are not undermined.

• Minimal environmental impact at all stages of the business.

• Contribution to conservation by engaging in partnerships with local environ

mental groups to campaign for conservation and environmental protection.

87

Products and Services

Guides with extensive local knowledgeYou get the best of both worlds on a Global Expeditions adventure. For than 40 years

we have worked with elite adventurers. Recognized experts in their field, many are

world-class photographers, authors and mountaineers. Their passion and expertise has

ensured that we are continually updating and refining our programs, taking adventure

travel to new heights. Of equal importance are our local guides who ensure that some-

one with a comprehensive understanding of regional conditions and culture leads

your trip. We have trained group leaders in all our operations. Validated by customer

feedback, our policy ensures employees with unparallel enthusiasm and experience.

Journeys as individual as you areWhile we offer an extensive range of programs, we recognize

that they may not suit everyone’s personal requirements. We

regularly custom-tailor holidays for families, friends, schools

and special-interest groups. Our staff will work with the cus-

tomer, using their expertise and experience to help make the

ultimate adventure a reality.

Worldwide small group journeys, adventures and expeditionsOur adventures are rated not just in terms of the destinations

we visit, but also by the type of journey we offer. When booking

trips, we offer our customers a definition of all activities as well

as an explanation of our grading system. Here is a sampling of

the expeditions we offer to our customers:

Experience– at the heart of all our adventuresAdventure travel is about experience. Whether you are reveling

in the festivities of a Diwali street party or sitting amongst

what feels like a million penguins on South Georgia, we aim

to capture the essence of this experience. Our adventures

are about discovery, personal achievement and camaraderie.

They will challenge, inspire and flirt with all of your senses.

Traveling the paths less trodden, and visiting isolated

communication, old sites and spectacular landscapes are

synonymous with Global Expeditions adventures.

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Family Adventures These adventures are designed for families yearning more than

the ‘typical family holiday’ and are designed with the younger

traveler in mind. The minimum age is generally 10-12 years

old. Our Vietnam and Tanzania itineraries have little trekking

or walking and can be enjoyed by all family members of all

ages. Our Annapurna trek requires a good level of fitness and

involves trekking of up to six hours a day at a slow, but

steady pace.

Cycle Touring Experience the world at handlebar level. Cycle touring is a

great way to explore remote villages a world away from the

highway. We provide a support crew and backup vehicle so

you can cycle at your own pace. You will cycle on sealed &

unsealed roads between 20-100 km a day. We operate our

cycle tours in India, Vietnam, China, Cuba, New Zealand,

the Andes, and Tibet.

We also offer more rugged mountain cycling. On these trips,

you will cycle on remote and rough roads, in variable wea-

ther conditions for up to eight hours a day. You will spend

successive days at altitudes generally not exceeding 5,500m.

While these are also fully supported expeditions you will

need to have a high level of cycling fitness and you should be

comfortable in adverse weather conditions in remote areas.

Kayaking Expect to kayak 6-7 hours per day. Prior kayaking experience is

expected, as is a good fitness level.Kayaking is a great way to

explore remote rivers and coastline. We also offer sea kayaking.

For these expeditions, is expected that you are experienced

specifically in sea kayaking. Our sea kayaking adventures are in

Tasmania and Queensland in Australia, Vanuatu and Fiji in the

South Pacific and on Halong Bay in Vietnam.

Rafting On our rafting trips, expect to raft 4-6 hours a day. We tackle

the whitewater rapids of the world renowned Franklin River

in Tasmania, as well as the Seti River in Nepal. No rafting

experience is necessary. We will teach you the basics and

ensure that your trip lives up to your expectations. Although

rafting the Franklin does not require any previous rafting

experience, the whitewater rapids and the terrain require a

solid background in the outdoors in order to fully participate.

Cruising We have co-chartered the Polar Pioneer for this season’s

cruises in the Antarctic and the High Arctic. This vessel

affords ample opportunity for daily (except when in transit)

shore-based excursions for unrivalled wildlife sightings. We

also offer an awesome excursion down the Nile on our Egypt

Expedition – a great way to see the wonders of Egypt.

Sailing Our Maldives sailing expedition is aboard a traditional quality

Dhonis. If you have never sailed before this trip is for you. Our

professional crew will assist you in all of the basic of sailing

and navigation. With our specially equipped sail boat, we

have the opportunity to explore both inhabited and uninhabited

islands a world away from the tourist resorts. A sense of fun

and a flexible approach is all that is required to have the trip

of a lifetime.

Wildlife Safari Whether it be in Nepal’s Chitwan National Park spotting the

armored Rhino, or in Costa Rica’s Corcovado National Park

viewing the two-toed sloth, or maybe in Antarctica getting up-

close to penguins, Global Expeditions will take you to some of

the world’s best wildlife viewing opportunities. Depending on

the location, wildlife viewing requires a keen eye, patience and a

love for creatures big and small. On all safaris, you will have

an experienced guide along with you to provide commentary

and insight. Bring your binoculars and don’t forget your

camera gear.

Culinary Touring The food and flavors of a destination are integral to a memo-

rable travel experience. With this in mind, we have recently

introduced several culinary tours to tempt your taste buds. Our

expert culinary leaders will help you uncover the secrets of the

world’s most tantalizing cuisines, including behind the scenes

cooking classes and visits to the best local kitchens in the

region. It goes without saying why China, Japan, Vietnam and

India have been selected as our inaugural culinary adventures.

Exploratory Treks Our exploratory treks involve trekking in variable conditions

for up to 8 or even 12 hours a day. They include travel along

remote, rugged trails and may occasionally venture into snow

and ice requiring the use of mountaineering boots, crampons

and ice axe. Expect to carry up to 12-15kgs in your backpack

on some stages of the expedition. You will spend a reasonable

portion of the trip at high altitudes and may camp on glaciers.

You will need an excellent level of fitness and be completely

comfortable in adverse weather conditions in remote areas.

Surfing These trips are recommended for experienced surfers only. We

will be surfing isolated reef breaks over live coral reefs. Waves

can be anywhere from 1m-3m (3-10 feet). We venture out to

the waves of Bali, Thailand, Costa Rica, Australia, Fiji and

other more remote locales.

Senior Adventures These trips have been tailored for the mature adventurer

who prefers a slightly slower pace, further rest days and more

creature comforts. The Annapurna and Best of South America

itineraries involve trekking for up to five to six hours a day at a

steady pace at moderate altitudes. In Patagonia, the day walks

are at a relaxed pace. You will spend each night at a comfort-

able lodge or hotel.

Mountaineering These include mountaineering treks to some of the world’s

most spectacular mountain ranges with some of the world’s

most experienced and knowledgeable guides. You will trek

remote trails in variable weather conditions at high altitude

for 8-12 hours per day and will carry up to 12-15 kgs in your

backpack. This may include travel on snow and ice requiring

the use of mountaineering boots, crampons and ice axe. You

will spend a reasonable portion of the trip at altitude (with

some days in excess of 5500m) and normally have several

camps on glaciers. A high level of fitness is required.

We explore remote peaks and passes in Nepal, India and the

Tian Shan, the summits of Bolivia, Aconcagua – the highest

mountain in the southern hemisphere, Ojos del Salado – the

highest volcano in the world, Mt. Elbrus – the highest mountain

in Europe, and Mt Aspiring in New Zealand.

Trekking Trek 4-8 hours a day, depending on the grading. You are

required to carry your own daypack (5-10 kgs) to hold your

daily requirements, including a liter of water, a jacket, rain

gear, snacks and camera equipment. We also have trekking

to remote locations, where each person is required to carry

a full pack of up 20 kgs. We feel that trekking is suited to

exploring villages and monasteries in remote regions and

getting up and personal with inspiring mountain scenery. We

discover the remote trails of the Himalaya in Nepal, Tibet,

India, and Bhutan; the Andes from Patagonia to Peru; the

Table Mountains of Venezuela; the High Atlas of Morocco;

the Simien Mountains of Ethiopia; Kilimanjaro, Mount Kenya

and the Ruwenzori Mountains in East Africa; along the Great

Wall of China; Turgen Mountain in Mongolia; the volcanoes of

the Kamchatka Peninsula in Eastern Russia; Greenland’s vast

fjords and many more locales.

Adventure Touring Consists of short day walks of 1-3 hours per day, such as

city tours or boardwalks. Our diverse range of natural history

and cultural adventures combine our expert knowledge of

remote regions with our ability to devise exhilarating journeys.

There is no camping on these trips. Instead you will stay in

comfortable hotels, local inns or lodges.On these journeys you

may enjoy the local hospitality of the Ryokans (inns) in the

remote countryside of Japan, explore a Buddhist monastery

deep in the mountains of Tibet or delve into the history of the

Great Game in Kashgar. While there are no specific physical

prerequisites it is important that travelers are in good health

and have a positive attitude to enjoy the vast experiences that

are part of our journeys.

Capturing a Priceless Experience

1211

Leaders in the Field — the key to our successSince 1960, Global Expeditions has worked with many recognized experts, elite adventurers and mountaineers. All of our leaders have made a significant contribution to our development while their expertise and enthusiasm have ensured we maintain the ‘leading edge’ in adventure travel.

Tim Macartney-SnapeTim is Australia’s best known mountaineer and a popular

Global Expeditions leader. He has climbed Everest twice, from

Tibet in 1984 and in 1990 during his famous ‘Sea to Sum-

mit’ Expedition. He has also climbed many other peaks in the

Himalaya including Ama Dablam, Dunagiri in the Indian Hima-

laya and Gasherbrum 4 in the Karakoram. Tim is the Chairman

of the Nepal Eye program Australia, a program founded by the

late Professor Fred Hollows. Tim regularly leads our exploratory

treks in Nepal and in the Indian Himalaya.

Sue FearIn May 2003, Sue became the first Australian women to

climb Everest from the north side. Sue has led an impressive

number of treks and climbs for us in the Himalaya and in

South America over the last decade. Sue was the first Austra-

lian woman to climb Cho Oyu (8135m) in 1998 and in 2002

she added Shishapangma (8046m) to her impressive climbing

cv. In between these expeditions she is based in the Sydney

office where she can provide you with invaluable advice on our

climbing and high altitude trips.

Richard I’AnsonThere are few corners of the world where Richard has not pho-

tographed. Indeed his work features in over 150 Lonely Planet

guidebooks as well as their best selling guide on ‘Travelpho-

tography’. Over the last decade Richard has made a significant

contribution to our brochures. This season he will accompany

our Best of East Africa photography trip.

Dr. Jim DuffJim is a mountaineer and medical practitioner who enjoys the

distinction of being on a number of Everest climbs including

the successful Australian ascent in 1984 and the historic Brit-

ish SW Face Expedition in 1975. Jim is our medical advisor

and has over the last decade supervised the medical courses

for our local leaders in Kathmandu. He is the author of the

definitive medical guide for trekkers to the Himalaya carried by

all our leaders. This year Jim will again guide a trek for medical

professionals that will cover some of the health care problems

of traveling in remote areas and trekking at high altitude.

Andreas HollandAndreas makes our South and Central American programs

special. He has lived in South America for over 25 years.

Much of this time has been spent in Peru where he has

amassed a wealth of experience that would be hard to equal.

His innovative itineraries and desire to share his love of South

and Central America are key factors that ensure the success

of our outstanding program. His expertise also extends south

to the Antarctic.

Garry WeareGarry has been involved with Global Expeditions since its

inception in the mid-1970s. He is a recognized authority on

the Indian Himalaya and his intimate knowledge of the region

is documented in his Lonely Planet guidebook ‘Trekking in the

Indian Himalaya’, now in its 4th edition. He is also a founding

director of the Australian Himalayan Foundation. As our Himal-

ayan consultant he also spends time on the trail in Nepal, Tibet

and Bhutan.

1413

Heather ReidHeather has been leading adventure journeys since 1982 when

she took her first group into northern Pakistan. Since then she

has worked in a number of locations including India, Vietnam

and Bangladesh. This season she again shares her passion for

Islamic culture on our exceptional journey through

‘Ancient Persia’.

Jake StarleyJake started with the company as guide on our Kakadu and

Arnhem Land trips and has gone on to lead our Morocco Ad-

venture, Highlands of Ethiopia and Tanzania on Foot. He now

runs our unique Australian program, and apart from being one

of our most experienced leaders he also has an abiding interest

in eco-tourism. His dedication to sustainable travel is reflected

in our award winning Responsible Travel Guide Book

Skip HornerSkip Horner has been guiding mountain expeditions worldwide

for over 30 years. When he summited Everest in 1992 he be-

came the first to person to successfully guide the Seven Sum-

mits, the highest peak on each continent. He is also a longtime

professional white-water boatman with many first descents of

rivers on five continents, and was recently named one of the

“Top 100 Paddlers of the 20th Century”. This year Skip will be

leading our Huayhuash Circuit –shortened version in Peru.

Jon MuirJon is recognized as one of Australia’s top mountaineers and

explorers, as well as one of our most colorful wild-wise charac-

ters. He has been on five Everest expeditions and summited in

1988. In line with his true expeditionary nature he has also re-

cently completed an unassisted trek to the North Pole. He has

a deep love for Australian wilderness has seen him become the

first person to cross Australia unassisted on foot. This season

he will be leading our Aconcagua Expeditions.

Lucas TriheyLucas is in his element when climbing and photographing high

mountains. His vast experience – dating back over 20 yrs – has

taken him on expeditions to the Karakoram, China, Antarctica,

Japan, Africa and New Zealand. Lucas is now kept busy jug-

gling his new role of chief editor at ‘Outdoor’ Magazine with his

young family.

Ian PerlmanAfter living in Japan for over a decade Ian lives and breathes

the country. His intimate knowledge of the language and

culture, his familiarity with the back roads and mountain trails

together with his love of Japanese buildings (Ian is an architect)

ensure that our unique range of Japanese adventures are led by

a true expert and enthusiast.

Greg MortimerIn 1984 Greg and Tim Macartney-Snape became the first Aus-

tralian’s to climb Everest. Since then Greg has completed some

outstanding climbs including an ascent on the North Face of

K2 in 1993 and Manaslu in 2002. He has also pioneered Polar

voyages with over 60 leads to the Antarctic with his company

Aurora Expeditions, with whom we co-charter the Polar Pioneer

for our voyages.

1615

Our vision can only be achieved with the support of our business partners. Here is what they have to say about Global Expeditions.

Partners

World Wildlife Federation“Global Expeditions were the winners of the “Environmental Achievement Award

2007” for their outstanding publication of ‘TheResponsibleTravelGuidebook’,

highlighting ways to minimize the impact of your travel, and encouraging every

participant to only take photos’ and leave only Footprints. WWF decided to be

involved in the award to encourage tourism strategies and practices that have

a positive effect on the environment. This award to Global Expeditions not only

acknowledges and rewards progress towards better environmental management,

but also identifies the practices that can be promoted and adopted by others,

internationally as well as locally.”

International Porter Protection Group“IPPG would like to congratulate Global Expeditions on its ongoing support and

efforts to make the conditions of their porters safer and easier. Your initiative

in flying large quantities of clothing to Nepal for the porter clothing banks of

Lukla and Kathmandu and sponsoring fund raising talks is greatly appreciated.

By providing tents, cooked food and warm drinks in addition to full outdoor

clothing and boots when porters are above the tree line, Global Expeditions has

significantly raised the standard on porter care by large companies and is setting

important industry standards. Keep up the good work.”

The Wilderness Society“The Wilderness Society is dedicated to the protection, promotion and preser-

vation of wilderness areas. Achieving this has never been easy. It is therefore

extremely encouraging when a business takes leadership in developing respect

for our fragile environmental and cultural landscapes. Global Expeditions

has displayed this leadership and committed themselves to act in a socially

and envronmentally responsible manner. They are striving to minimize the impact

of their business, assist local communities in their efforts to care for the environ-

ment and educate their travelers. This ethical policy puts into writing a philosophy

that they have been operating for many years. We commend them on their ongo-

ing attempts to find a true balance between the enjoyment and the preservation

of our physical and social environments.”

The Fred Hollows Foundation“Right from the early days of the Fred Hollows Foundation, Global Expeditions

has been there supporting our work and raising funds. They have been involved

in developing and supporting Nepal’s Tilganga Eye Care Centre right through to

today. The staff and clients of Global Expeditions have shown real enthusiasm for

working with the Fred Hollows Foundation in dealing with vision and health issues

throughout the world. There is no better example of this than the “See the World”

program combining fundraising with travel to Nepal, China, Vietnam and the

Aboriginal Communities of Australia’s Top End. Global Expeditions have created

one of our most important fundraisers and have given hundreds of supporters the

chance to visit our eye-hospitals in places like Nepal and Vietnam.”

The Himalayan Trust“Sir Edmund Hillary created a charity that has a real and immediate impact on

the Sherpas daily lives. Since inception The Himalayan Trust has been governed

by these 5 guiding principles. First, to focus on basic infrastructure to give the

Sherpas the basic resources to help them help themselves. Second, to only do

what was requested by the Sherpas. Third, too involve the Sherpas themselves

in the work. Next, to minimize all unnecessary costs— the Trust is staffed by

volunteers. Finally, he implemented the direct transfer of funds by carrying the

money directly to Nepal. These principles still hold true today, and we have

expanded our work to use this approach to benefit the mountain people of Nepal.

In particular, we have been particularly focused on projects aiming to improve

education, social development, and the environment.”

1817

YEAR ENDED 2004 2005 2006 2007 2008 Statement of Operations Data:Total revenues $180,880 $220,243 $300,715 $394,354 $491,549

Operating expenses $159,941 $190,003 $250,690 $316,946 $381,489

General and

administrative expenses $10,897 $14,856 $20,061 $27,562 $28,897

Depreciation and

amortization expenses $4,278 $4,546 $6,457 $7,959 $12,271

Arbitration award — — — — $9,075

Provision for restructuring 9,466 — — — —

Income (loss) from operations (3,702) 10,838 23,507 41,887 59,817

Interest expense (income),

net, and other 1,577 1,232 (1,698) (2,408) 749

Equity loss in joint ventures — — 706 602 2,008

Minority interest — — 716 1,147 2,287

Income (loss) before

income taxes (5,279) 9,606 23,783 42,546 54,773

Provision (benefit)

for income taxes (2,112) 3,650 9,058 16,168 21,295

Net income (loss) $(3,167) $5,956 $14,725 $26,378 $33,478

Net income (loss) per share:

Basic $(.09) $ .16 $.30 $ .49 $.61

Diluted $(.09) $.15 $.27 $.45 $.56

Shares used in calculation of net income (loss) per share:

Basic 32,996 37,360 49,184 53,703 55,093

Diluted 32,996 39,280 53,656 58,443 59,492

Dividends declared per common share $ .04 $ — $ — $— $—

Operating Data (Un-audited):

Sales $240,316 $318,854 $448,129 $621,665 $778,573

Balance Sheet Data (at end of period):

Working capital $8,387 $11,452 $29,443 $49,236 $81,441

Total assets 93,312 104,958 171,493 255,376 410,487

Long-term debt, incld.

current maturities 21,020 22,902 — 4,643 60,489

Total shareholders’ equity 42,247 47,755 125,679 187,667 273,352

The following table shows selected financial data for Global Expeditions. The selected historical

statement of operations data for each of the years ended, and the selected historical balance sheet

data as of January 31, 2003, January 30, 2004, January 28, 2005, February 3, 2006 and February

2, 2007 have been derived from our audited consolidated financial statements. Please note that our

fiscal year contained 53 weeks. You should read the following selected financial data in conjunction

with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the

financial statements and accompanying notes and the other financial data included elsewhere herein.

All references to per share amounts and any other reference to shares in “Selected Financial Data,”

unless otherwise noted, have been adjusted to reflect a two-for-one stock split paid on March 19, 2005

to shareholders of record as of March 5, 2005 and a two-for-one stock split paid on June 14, 2006 to

shareholders of record as of May 29, 2006. Unless otherwise specified, references in this annual report

to “Global Expeditions,” the “Company,” “we,” “us” or “our” refer to Global Expeditions.

Selected Financial Data

2019

The following discussion of our financial condition and results of operations

should be read together with the financial statements and the accompanying

notes. This annual report contains statements about future events and expec-

tations, including anticipated entries into the travel market, planned capital

expenditures and trends in or expectations regarding the Company’s operations

and financing abilities that constitute “forward-looking statements” within the

meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking

statements are based on management’s beliefs, assumptions, and expectations of

our future economic performance, taking into account the information currently

available to management. These statements are not statements of historical fact.

Forward-looking statements involve risks and uncertainties that may cause our

actual results, performance or financial condition to differ materially from the

expectations of future results, performance or financial condition we express or

imply in any forward-looking statements. Factors that could contribute to these

differences include, but are not limited to: the Company’s ability to continue and

manage growth; delays in entering new travel regions; the quality of expeditions;

the price and availability of transportation; changes in customer preferences and

perceptions; risks associated with competition; risks associated with fluctuations

in operating and quarterly results; compliance with government regulations; and

other factors discussed in Global Expeditions’ periodic reports, proxy statement

and other information statements filed with the Securities and Exchange Com-

mission. The Company qualifies any forward-looking statements entirely by these

cautionary factors. All references to per share amounts and any other reference

to shares in unless otherwise noted, have been adjusted to reflect a two-for-one

stock split paid on March 19, 2006 to shareholders of record as of March 5,

2006 and a two-for-one stock split paid on June 14, 2007 to shareholders of

record as of May 29, 2007.

Management Discussion and Analysis

2221

Critical Accounting Policies The Company’s analysis and discussion of its financial condition and results of

operations are based upon its consolidated financial statements that have been

prepared in accordance with accounting principles generally accepted in the United

States of America (“US GAAP”). The preparation of financial statements in accor

dance with US GAAP requires management to make estimates and assumptions

that affect the reported amounts of assets, liabilities, revenues and expenses, and

the disclosure of contingent assets and liabilities. US GAAP provides the framework

from which to make these estimates, assumptions and disclosures. The Company

chooses accounting policies within US GAAP that management believes are appro-

priate to accurately and fairly report the Company’s operating results and financial

position in a consistent manner. Management regularly assesses these policies in

light of current and forecasted economic conditions and has discussed the develop-

ment and selection of critical accounting policies with its audit committee of the

board of directors. Effective fiscal 2006, the Company adopted SFAS No. 142,

“Goodwill and Other Intangible Assets.” The Statement addresses the accounting

and reporting of goodwill and other intangible assets subsequent to their acquisi-

tion. The Statement requires intangible assets with definite lives to be amortized

over their estimated useful lives, while those within definite lives and goodwill are

no longer subject to amortization, but must be tested annually for impairment or

more frequently if events and circumstances indicate potential impairment.

Company Overview and Industry OutlookWe expect sales to grow due to a variety of factors, including the growth in two-

income households and rebound of the travel industry after 9-11. We view the

fragmented competition in the travel industry as an opportunity for our continued

growth. We also believe that the quality of our service and the strength of our brand

has enhanced and will continue to help enhance the growth and expansion of the

overall adventure travel market. We have fixed or semi-fixed costs, and margins and

profitability are significantly impacted by travel volume and sales.

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To the Board of Directors and Shareholders of Global Expeditions

In our opinion, the accompanying consolidated balance sheets and the related

consolidated statements of operations, of shareholders’ equity and of cash flows

present fairly, in all material respects, the financial position of Global Expeditions

at February 3, 2007 and February 2, 2008, and the results of their operations

and their cash flows for each of the three years in the period ended February 2,

2008, in conformity with accounting principles generally accepted in the United

States of America. These financial statements are the responsibility of the Com-

pany’s management; our responsibility is to express an opinion on these financial

statements based on our audits. We conducted our audits of these statements in

accordance with auditing standards generally accepted in the United States of

America, which require that we plan and perform the audit to obtain reasonable as-

surance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts

and disclosures in the financial statements, assessing the accounting principles

used and significant estimates made by management, and evaluating the overall

financial statement presentation. We believe that our audits provide a reasonable

basis for the opinion expressed above. As discussed in Note 2 to the consolidated

financial statements, effective February 4, 2008, the Company changed its method

of accounting for goodwill and other intangible assets to conform to Statement of

Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.”

Los Angeles, California

March 13, 2008

Executive OfficersGorden Steer President and Chief Executive Officer

Karen Cottle Executive Vice President

Gabrielle Dean Senior Vice President and Chief Financial Officer

Susan Rawlings Senior Vice President of Corporate Marketing and

Communications

UnitIvan Koon Senior Vice President, Antartic Travel

Rezharco Doria Senior Vice President, African Travel

Tom Tomiyama Senior Vice President, Asian Travel

Sue Badyari Senior Vice President, United States Travel

Kate Barker Senior Vice President, Australian Travel

Board of Directors

Global Expeditions Report of Independent Accountants

Scott Porter Chairman of the Board, Global Expeditions

Gorden Steer President and Chief Executive Officer, Global Expeditions

Amanda Baldwin Independent Consultant

James Phillips Executive Vice President of Global Sales and Marketing, World

Travel Inc.

Colleen Clark Attorney

Robert Woodward Professor of Environmental Science, Princeton University

Jennifer Boyd Independent Consultant

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A copy of Global Expeditions 2008 Form 10-K is included as part of this Annual

Report. If you would like to receive additional financial documents such as an-

nual reports, earnings press releases, or Global Expeditions’ SEC filings on Form

10-Q or Form 10-K, you can request them without charge by calling 805-555-

4700 or via e-mail at glbexp@kpcorp.com. Please include your contact informa-

tion with your request. You can view this Annual Report, obtain Global Expedi-

tion’s financial calendar information such as earnings release dates, listen to

Global Expeditions management conference calls, view recent Global Expeditions

investor presentations, sign up to automatically receive Global Expeditions inves-

tor news via e-mail, and obtain other Global Expeditions finance-related docu-

ments online at www.globalexpeditions.net/aboutglobal expeditions/invrelations.

Annual MeetingThe Annual Meeting of Stockholders will be held April 9, 2009, at 3:30 p.m. at Global Expeditions headquarters in Ventura, California.

Stock Exchange ListingThe Nasdaq Stock Market Ticker symbol GLBEXP

Independent AuditorsKPMG LLP Mountain View, California, USA

On May 17, 2001, Global Expeditions’ common stock began trading on the New

York Stock Exchange. During the period April 5,2000 through May 16, 2001, the

stock was traded on the Nasdaq National Market. Prior to that time, there was no

trading market for the Company’s common stock. The following table sets forth for

the periods indicated the high and low closing sales prices of Global Expeditions’

common stock on the New York Stock Exchange.

FISCAL YEAR ENDED February 2, 2008 High Low

First Quarter $43.27 $35.98

Second Quarter $41.42 $29.46

Third Quarter $37.77 $28.52

Fourth Quarter $38.90 $29.96

As of April 7, 2008, the Company had approximately 166,900 shareholders based

on the number of holders of record and an independent estimate of the number of

individual participants represented by securities position listings. Global Expedi-

tions presently intends to retain its earnings to finance the expansion of its business

and does not anticipate paying cash dividends in the foreseeable future.

To contact Global Expeditions’

Investor Relations department,

please use the following contact informa-

tion:

Investor Relations Department

Global Expeditions

5757 San Buenaventura Street

Ventura, CA, 93001

Tel. 805 555 2212

Fax. 805 555 3443

Toll free: 1 800 555 TREK

Email: invrel@globalexpeditions.net

To report a change of address or lost

stock certificates,

please notify our Transfer Agent:

Travel Investor Services LLC

Shareholder Communications

P.O. Box 345, Chicago, IL 60690-1689

800-455-1130312-360-5148

Investor Relations Common Stock

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