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                                                                    EXHIBIT 10.2

                                     CAMTEK LTD.
                 AMENDED AND RESTATED SUBSIDIARY EMPLOYEE OPTION PLAN

1.   DEFINITIONS

     As used herein the following terms shall have the meanings hereinafter set
     forth, unless the context clearly indicates the contrary.

     (A) the "COMPANY" - Camtek Ltd.

     (B) "BOARD" - the Board of Directors of the Company.

     (C)  "SHARE(S)" - Ordinary Shares of the Company, each with a par value of
          NIS 0.01.

     (D)  "OPTION(S)" - an Option or Options granted within the framework of
          this Plan each of which imparts the right to purchase one Share per
          Option.

     (E)  "GRANTEE" - an employee of a Subsidiary to whom Options are granted or
          to whom the Company decides to grant Options.

     (F)  "PLAN" - the Company's Employee Subsidiary Option Plan as provided
          hereunder, and as may be amended from time to time, as set forth
          hereinbelow.

     (G)  "OPTION AGREEMENT" - the Agreement to be executed between the Company
          and the Grantee under which Option(s) are to be granted.

     (H)  "VESTED OPTION(S)" - that portion of the Options which the Grantee is
          entitled to exercise in accordance with the provisions of Section 8.2
          of the Plan or the provisions of the Option Agreement executed with
          such Grantee.

     (I)  the "EXERCISE PERIOD" - the period during which the Vested Options may
          be exercised, as provided in Section 8.3 of the Plan.

     (J)  "EXERCISE PRICE" - the price which the Grantee must pay to exercise
          each Option.

     (K)  "EXERCISED SHARES" - the Shares issued upon the exercise of the
          Options.

     (L)  the "CUSTODIAN" - a custodian who may be appointed by the Company for
          the purposes of this Plan and who shall act in accordance with terms
          to be determined by the Board.

     (M) "INCENTIVE STOCK OPTION(S)" - as defined in Section 7 hereto.

     (N) "INCENTIVE STOCK OPTION GRANTEE" - as defined in Section 7 hereto.
     (O) "SUBSIDIARY" - any company in which, at the time of granting an
          Option, the Company owns, directly or indirectly, at least fifty
          percent (50%) of the total combined voting power of all classes of
          shares of such company.

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     2.   THE PLAN

     2.1  PURPOSE - The purpose and intent of the Plan is to grant to selected
          employees of the Company's Subsidiaries, an opportunity to purchase
          Shares of the Company by way of granted Options and to provide an
          additional incentive to such employees to remain in the employ of the
          Company's Subsidiaries, to encourage the sense of proprietorship of
          such employees, and to stimulate the active interest of such employees
          in the success of the Company and the Company's Subsidiaries.

     2.2  EFFECTIVE DATE - The Board has resolved to adopt and authorize the
          Plan and has resolved that it shall enter into effect commencing
          1.9.97.

     2.3  SUNSET DATE - The Plan shall be valid and in effect for a period of
          ten (10) years and shall expire on 31.8.2007.

3.   ADMINISTRATION

     3.1  The Plan shall be administered by the Board.

     3.2  The Board shall have sole and full discretion and sole authority to
          administer the Plan and all actions related thereto, including to
          perform any and all of the following from time to time and at any
          time:

          3.2.1  to determine the Subsidiaries' employees in favor of whom the
                 Options shall be granted, the number of Options to be granted
                 in favor of each employee, the Exercise Price and Exercise
                 Period thereof, and the conditions under which such Options may
                 be exercised, including with respect to the entrustment of the
                 Options with a Custodian;

          3.2.2  to interpret the Plan;

          3.2.3  to determine the terms of the Option Agreements;

          3.2.4  to perform any action required or advisable for the
                 administration of the Plan; and

          3.2.5  to prescribe, amend, modify (including by adding new terms and
                 rules), and to rescind and terminate the Plan or any of its
                 terms.

     3.3  Any amendment or modification of the Plan, if any, shall be applicable
          to the relationship between the Grantee and the Company, including
          under the Option Agreements and the amendment or modification shall be
          deemed to have been included in the Plan and the Option Agreements, AB
          INITIO, unless the amendment or modification adversely affects the
          rights of a Grantee under the Vested Options.

4.   ELIGIBILITY

          In determining the employees in favor of whom Options are to be
          granted, the number of Options to be granted and the terms of the
          Options, the Board may take into account the nature of the services
          rendered by the respective employee, such employee's present and
          future potential and contribution to the success of the Subsidiaries,
          and any other criteria the Board may deem relevant.

5.   RESERVED SHARES

     The total number of Options to be granted to the Grantees pursuant to the
     Plan shall be determined from time to time by the Board.

     The Company shall at all times reserve such number of authorized but
     unissued Shares which equals the number of Shares to which all of the then
     outstanding Options may be converted upon exercise.

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6.   GRANT OF OPTIONS AND ISSUANCE OF SHARES IN TRUST

     6.1  The Options shall be granted in favor of the Grantee for no
          consideration.

     6.2  The Options and the Grantee's rights thereunder shall be subject to
          the execution of an Option Agreement between the Company and the
          Grantee, which Option Agreement shall set forth the terms and
          conditions of the Options, as determined by the Company, including
          without limitation, the number of Options granted thereunder, the
          terms of exercise thereof (including the Exercise Price) and any other
          term the Board may deem necessary.

     6.3  In addition, the Options shall be subject to the execution of all the
          documents necessary in order to comply with all applicable tax laws
          (hereinafter: the "TAX LAWS"), and all other documents that may be
          required by the Company at any time, (the Option Agreement and said
          documents shall be hereinafter referred to as: the "DOCUMENTS").

     6.4  The Company shall provide the Grantee with the Documents for signature
          after the Board adopts a resolution to grant Options in favor of such
          Grantee, and the Company shall sign such Documents after they have
          been duly signed and returned by such Grantee.

          It is hereby clarified that the execution of the said Documents by the
          Grantee does not exempt the Grantee from signing any other document as
          may be required by the Company at a later stage.

     6.5  The Board may, from time to time, with respect to all of the Grantees
          or with respect to any particular Grantee, resolve that during the
          Restricted Period (as defined below) and until the underlying Shares
          are released (as provided below), the Options granted hereunder shall
          be held by the Custodian and the Exercised Shares shall be issued to
          the Custodian, and both shall be registered in the name of the
          Custodian, who shall hold the Options and/or the Exercised Shares in
          trust for such period as determined by the Board commencing from the
          date the Option documentation is deposited with the Custodian
          (hereinafter: the "RESTRICTED Period"), and then continuing until such
          time as they are released, as hereinafter provided.

7.   AWARD OF INCENTIVE STOCK OPTIONS

     The Board may, from time to time and subject to the provisions of the Plan
     and such other terms and conditions as the Board may prescribe, grant to
     any participant in the Plan who is a United States citizen or resident
     and/or otherwise subject to taxation in the United States with respect to
     the grant of the Options, one or more "incentive stock options" (intended
     to qualify as such under the provisions of Section 422 of the Internal
     Revenue Code of 1986, as amended) (the "CODE" and "INCENTIVE STOCK OPTIONS"
     respectively) to purchase for cash the number of Shares allotted by the
     Board. The maximum number of Shares that may be issued under this Section 7
     is 250,000. The date an Incentive Stock Option is granted shall mean the
     date selected by the Board as of which the Board allots a specific number
     of shares to a participant pursuant to the Plan. Notwithstanding the
     foregoing, Incentive Stock Options shall not be granted to any owner of 10%
     or more of the total combined voting power of the Company and its
     Subsidiaries.

     Without derogating from anything to the contrary contained herein, it is
     hereby clarified that a resolution of the Board with the following effect
     shall require shareholder approval: (I) increasing the maximum number of
     Shares that may be issued under this Section 7; (II) extending the period
     during which an Incentive Stock Option may be granted or exercised; (III)
     extending the term of this Incentive Stock Option Plan; or (IV) changing
     the class of employees who are eligible to participate in this Incentive
     Stock Option Plan.

     7.1    INCENTIVE STOCK OPTION AGREEMENTS.

          The grant of an Incentive Stock Option shall be evidenced by a written
          Incentive Stock Option Agreement, executed by the Company and the
          holder of an Incentive Stock Option (the "INCENTIVE STOCK OPTION
          GRANTEE"), stating the number of Incentive Stock Options to be granted
          and the other

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          terms referred to in Section 6.2 of the Plan, and in such form as the
          Board may from time to time determine.

     7.2    INCENTIVE STOCK OPTION PRICE.

          The exercise price of the Incentive Stock Options shall be 100% of the
          fair market value of a share of Shares on the date the Incentive Stock
          Option is granted. For as long as the Company's shares are traded on
          Nasdaq, said fair market value shall be as determined by the closing
          value of the Shares listed on Nasdaq at the closing of the last
          previous day of trading.

     7.3    MAXIMUM AMOUNT OF INCENTIVE STOCK OPTION GRANT.

          The aggregate value of Shares vesting in any calendar year to the
          benefit of any one Grantee pursuant to an Incentive Stock Option,
          shall not exceed US $100,000, such value measured by the fair market
          value of such shares on the date of grant of the Option pursuant to
          Section 7.2 above.

     7.4    APPLICABILITY OF STOCK OPTIONS SECTIONS.

          All Sections of this Plan with the specific exclusion of any
          provisions pertaining to the holding of the Options of the underlying
          Shares by a Custodian shall apply equally to Incentive Stock Options,
          MUTATIS MUTANDIS, to the extent not inconsistent with the express
          provisions of this Section 7. Said sections are incorporated by
          reference in this Section 7 as though fully set forth herein.

8.   TERMS OF OPTIONS

     8.1  Except as otherwise provided, the amount of Options and the Exercise
          Price for each Grantee shall be determined by the Board and shall be
          specified in the Option Agreement; provided however, that in no event
          shall the Exercise Price of (a) any Option be less than the par value
          price of the Shares; and of (b) any Incentive Stock Option be less
          than the fair market value of the Shares on the date of the grant of
          the Options, as set forth in Section 7.2 above.

     8.2  Unless otherwise determined by the Board with respect to any specific
          Grantee, the right of a Grantee to exercise the Options granted in
          such Grantee's favor during the Exercise Period shall be vested with
          such Grantee as follows:

          (a)    If the Grantee remains in the employ of any of the Subsidiaries
                 for a period of not less than 2 years from the date of the
                 resolution of the Board regarding the issuance of the Options
                 to the Grantee (hereinafter: the "Date of the Grant") - the
                 Grantee shall be entitled to exercise 50% of all the Options
                 granted in such Grantee's favor.

          (b)    If the Grantee remains in the employ of any of the Subsidiaries
                 for a period of not less than 3 years from the Date of Grant -
                 the Grantee shall be entitled to exercise 75% of all the
                 Options granted in such Grantee's favor.

          (c)    If the Grantee remains in the employ of any of the Subsidiaries
                 for a period of not less than 4 years from the Date of Grant -
                 the Grantee shall be entitled to exercise 100% of all the
                 Options granted in such Grantee's favor.

          In the event that the employment of the Grantee is terminated for any
          reason (including due to death or disability), all of the Options
          granted in such Grantee's favor which are not yet Vested Options shall
          immediately expire and terminate, shall become null and void and shall
          not entitle the Grantee to any right in or to the Company.
          Notwithstanding the above, a transfer of a Grantee's employment from
          one Subsidiary to another Subsidiary or to the Company shall not be
          deemed a termination of the Grantee's employment.

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     8.3  EXERCISE PERIOD

          8.3.1  Each Vested Option shall remain exercisable until the lapse of
                 two years following the later of : (I) the vesting date of such
                 Options, or (II) the date of the initial public offering of the
                 Company's shares on Nasdaq.

          8.3.2  In the event of a merger of the Company with or into another
                 corporation, or the sale of all or substantially all the assets
                 or the shares of the Company (such merger or sale: the "MERGER
                 TRANSACTION"), the surviving or the acquiring entity, as the
                 case may be, or their respective parent or subsidiary (the
                 "SUCCESSOR ENTITY"), may either assume the Company's rights and
                 obligations under outstanding Options or substitute for
                 outstanding Options substantially equivalent options for the
                 Successor Entity's shares.

                 For purposes of this Section 8.3.2, the outstanding Options
                 shall be deemed assumed or substituted by the Successor Entity
                 if, following the consummation of the Merger Transaction, the
                 outstanding Options confer the right to purchase or receive in
                 accordance with their terms, for each share subject to any
                 outstanding Option immediately prior to the consummation of the
                 Merger Transaction, the consideration (whether shares, cash or
                 other securities or property) to which a holder of a share on
                 the effective date of consummation of the Merger Transaction
                 was entitled; provided however, that if such consideration is
                 not solely securities of the Successor Entity, the Board may,
                 with the consent of the Successor Entity, provide for the
                 consideration to be received upon the exercise of the
                 outstanding Options, to be solely securities of the Successor
                 Entity equal in their market value to the per share
                 consideration received by the holders of shares in the Merger
                 Transaction.

                 In the event that the Successor Entity does not assume or
                 substitute for all of the outstanding Options of a Grantee,
                 then the Grantee shall have a period of fifteen (15) days, from
                 the date designated in a written notice to be gi ven to the
                 Grantee by the Company, to exercise all the Vested Options of
                 the Grantee; provided, however, that if the Merger Transaction
                 occurs within the first one year period of vesting, a
                 proportionate quantity of the Options granted to the Grantee
                 which are to be vested at the end of the first one year period,
                 relative to such Grantee's engagement period out of such
                 one-year period, shall become vested and may be exercised by
                 the Grantee within said 15-day period.

                 All Options which are neither assumed or substituted for by the
                 Successor Entity nor exercised as of the date of the end of the
                 said 15 day period shall expire and terminate effective as of
                 the date of the consummation of the Merger Transaction, shall
                 become null and void and shall not entitle the Grantee to any
                 right in or towards the Company.

     8.4  Unless otherwise instructed in writing by the Company, Vested Options
          may be exercised at one time or from time to time during the Exercise
          Period, Custodianby providing written instructions to the Company from
          the Grantee in a form to be determined by the Company at its principal
          office or to anyone the Company may designate for this purpose,
          accompanied by the full payment of the Exercise Price for the Vested
          Options then being exercised, by personal check or cashier's check
          payable to the order of the Company (the written instructions
          accompanied by the full payment shall be referred to hereinafter as:
          the "EXERCISE NOTICE"); provided however, that in case payment is made
          by personal check (and not by cashier's check), the Options shall not
          be deemed exercised, and the Company shall not issue the Exercised
          Shares in respect thereof, until the personal check shall have been
          fully honored by the bank on which it was drawn.

     8.5  If such Vested Options are held by a Custodian, the terms under which
          such Vested Options may be exercised and the terms of their issuance
          and release shall be determined by the Company, including in
          accordance with the Tax Laws.
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     8.6  A Grantee whose employment with any of the Subsidiaries was terminated
          for any reason (including death or disability) shall be entitled only
          to the Exercised Shares and to the Vested Options, and the remaining
          Options (i.e. non-Vested) shall expire and terminate and become null
          and void and shall not entitle the Grantee to any right in or to the
          Company.

9.   TRANSFERABILITY

     9.1  The Options and all rights related thereto shall not be assignable,
          transferable, subjected to an attachment, lien or encumbrance of any
          kind.

     9.2  Notwithstanding the abovesaid, the Vested Options shall be
          transferable by will or intestacy, provided that the Company receives
          written notice thereof, accompanied by a certified copy of the Will or
          Intestacy Order and/or other evidence deemed acceptable by the Board,
          and accompanied by the transferee(s) written consent to the provisions
          and rules of the Tax Laws, the Plan, and the Option Agreement.

     9.3  Following the exercise of the Vested Options, the Exercised Shares
          shall be transferable after the Restricted Period, subject to all
          applicable securities regulations and lock-up provisions. Further, to
          the extent that applicable law provides for concurrent payment of
          taxes by the transferor upon transfer, the Exercised Shares shall only
          be transferable once payment of all taxes required to be paid in
          connection with a sale or transfer of Exercised Shares shall have been
          made to the tax assessor, confirmation of same shall have been
          received by the Custodian or the Company, and the conditions set forth
          in Section 9 hereunder shall have been fulfilled.

     9.4  Without derogating from the abovesaid, in the event the shareholders
          of the Company (not including shareholders who purchased shares under
          a share option plan for employees or officeholders) (hereinafter: the
          "SELLING SHAREHOLDERS") intend to sell all of their shares in the
          Company, and to the effect that the Grantee was asked to do so by the
          majority of the Selling Shareholders (which majority shall be
          determined according to the pro rata share of each Selling Shareholder
          of the issued share capital of the Company), the Grantee shall be
          obligated to join the sale and sell the Exercised Shares such Grantee
          holds, under the same terms and conditions as the Selling Shareholders
          are selling their shares, and if requested by the purchasers of such
          sale, at the purchaser's sole discretion, the Grantee shall sell to
          the purchasers the Vested Options, under the same terms, as if the
          Grantee had exercised same immediately prior to the sale it being
          clarified that the Exercise Price shall be deducted from the sale
          price under such terms and that the remaining Options (i.e. non-Vested
          Options) shall expire and terminate and become null and void and shall
          not entitle the Grantee to any right in or to the Company.

10.  TERMINATION

     10.1 Notwithstanding anything to the contrary herein, any Option granted in
          favor of a Grantee not exercised by such Grantee within the Exercise
          Period and in strict accordance with the terms of the Plan and the
          Option Agreement, shall, upon the lapse of the Exercise Period,
          immediately expire and terminate, become null and void, and shall not
          entitle the Grantee to any right in, or toward the Company in
          connection with same, and all interests and rights of the Grantee, in
          and to same, shall expire.

     10.2 Notwithstanding anything to the contrary herein, upon the issuance of
          a court order declaring the bankruptcy of a Grantee, or the
          appointment of a receiver or a provisional receiver for a Grantee, or
          over such Grantee's assets, or any part thereof, or upon making a
          general assignment for the benefit of his creditors, any Option issued
          and registered in favor of such Grantee which was not yet exercised by
          the Grantee shall immediately expire and terminate, become null and
          void and shall not entitle the Grantee, the Grantee's receiver,
          successors, creditors or assignees, to any right in, or toward the
          Company in connection with same, and all interests and rights of the
          Grantee, the Grantee's receiver, successors, creditors or assignees,
          in and to same, if any, shall expire.

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11.  RIGHTS AS SHAREHOLDER

     11.1 It is hereby clarified that a Grantee shall not, by virtue of the
          Plan, the Option Agreement or any Option granted in favor of such
          Grantee thereunder, have any of the rights of a shareholder with
          respect to any Shares represented by the Options, until the Options
          have been exercised.

          Furthermore, except for the right to receive dividends as provided in
          Section 12.1 hereinafter, the Grantee shall not have any rights by
          virtue of the Exercised Shares until same shall have been released and
          transferred to the Grantee by registering same in the Grantee's name,
          and only then shall the Grantee have the rights of a shareholder with
          respect to the shares so registered.

     11.2 For so long as the Exercised Shares are held by the Custodian, if
          applicable, the Company shall consider only the Custodian as the owner
          of such shares for all purposes whatsoever (including without
          limitation, for the purpose of delivering notices); the Custodian,
          however, shall not exercise the voting rights conferred by such
          Exercised Shares in any way whatsoever, and shall not issue a proxy to
          any person or entity to vote such shares.

     11.3 The Grantee shall not have, and hereby waives the right to have, by
          virtue of the Exercised Shares, any pre-emptive rights to purchase,
          along with the other shareholders in the Company, a pro rata portion
          of any securities proposed to be offered by the Company prior to the
          offering thereof to any third party and any rights of first refusal to
          purchase any securities of the Company offered by the other
          shareholders of the Company.

12.  DIVIDENDS AND BONUS SHARES

     12.1 Cash dividends paid or distributed, if any, with respect to the
          Exercised Shares held by the Custodian, shall be remitted directly to
          the Grantee who is entitled to the Exercised Shares for which the
          dividends are being paid or distributed.

     12.2 If the Exercised Shares are registered to the Custodian all bonus
          shares to be issued by the Company, if any, with regard to the
          Exercised Shares, shall, be registered in the name of the Custodian
          and, if the Exercised Shares are registered to the Grantee, such bonus
          shares shall be registered in the name of the Grantee. All provisions
          applying to the Exercised Shares, shall apply to the bonus shares,
          MUTATIS MUTANDIS.

     12.3 If the bonus shares were registered in the name of the Custodian, the
          Custodian shall transfer the said bonus shares upon the transfer of
          the Exercised Shares with respect to which the bonus shares were
          issued.

13.  ADJUSTMENTS

     The number of Shares to which each outstanding Option is exercisable, shall
     be proportionately adjusted in the event of a reorganization of the share
     capital of the Company by a stock split, reverse stock split, combination
     or reclassification of the shares, as well as for a distribution of bonus
     shares. Such adjustment shall be made by the Board, whose determination in
     this matter shall be final and binding.

     All provisions applying to the Exercised Shares shall apply to all Shares
     received as a result of an adjustment as described above.

14.  RIGHTS TO CHANGES

     The Plan or the Option Agreement shall not affect, in any way, the rights,
     powers or freedoms of the Company or its shareholders to make or authorize:
     (a) any sale, transfer or any change whatsoever in all or any part of the
     Company's assets, obligations or business, or any other business,
     commercial or corporate act or proceeding, whether of a similar character
     or otherwise; (b) any or all adjustments, recapitalizations,

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     reorganizations or other changes in the Company's capital structure or
     business; (c) any merger or consolidation of the Company; (d) any issue of
     bonds, debentures, shares (including preferred or prior preference shares
     ahead of or affecting the existing shares of the Company including the
     shares into which the Options granted hereunder are exercisable or the
     Exercised Shares or the rights thereof, etc.); (e) or the dissolution or
     liquidation of the Company; and none of the above acts or authorizations
     shall entitle the Grantee to any right or remedy, including, without
     limitation, a right of compensation for any dilution resulting from any
     issuance of any shares or of any other securities in the Company to any
     person or entity whatsoever.

15.   NO EMPLOYMENT OBLIGATIONS

     Nothing in the Plan, the Option Agreements or in any Option granted
     hereunder shall guarantee the Grantee's employment in any of the
     Subsidiaries and no obligation of any of the Subsidiaries as to the length
     of employment of the Grantee or as to any other term of employment shall be
     implied by same; it is provided that the employment of any employee may be
     terminated at any time pursuant to such employee's terms of employment and
     any law.

16.  NO REPRESENTATION

     The Company does not and shall not, through this Plan or through any Option
     Agreement, make or be deemed to make any representation toward any Grantee
     with regard to the Company, its business, its value or with regard to the
     Company's shares in general, and the Exercised Shares in particular, their
     value or rights.

     The Grantee, upon entering the Option Agreement, represents and warrants
     toward the Company, that the Grantee's consent to the grant of the Options
     issued in favor of the Grantee and their exercise (if so exercised), is, in
     no respect, made on the basis of any representation or warranty made by the
     Company or by any of its directors, officers, shareholders or employees,
     and is made based only upon the Grantee's examination and expectations of
     the Company, on an "as is" basis. The Grantee waives any claim whatsoever
     of "non conformity" of any kind or any other cause of action or claim of
     any kind with respect to the Options and/or the Shares exercised thereupon.

17.  TAX CONSEQUENCES

     All tax consequences arising from the grant or exercise of any Option, the
     payment for or the transfer of the Exercised Shares to the Grantee, or from
     any other event or act (of the Company or the Grantee) hereunder, shall be
     borne solely by the Grantee, and the Grantee shall indemnify the Company
     and hold it harmless from and against any and all liability for any such
     tax or interest or penalty.

     Each of the Company and the Custodian, if applicable, may withhold from any
     payment to which the Grantee may be entitled to from the Company, the
     amount of the tax and/or other mandatory payment the withholding of which
     is required with respect to the Options and/or the Exercised Shares under
     any law.

18.  SUBORDINATION

     It is clarified that the grant of the Options hereunder is subject to the
     approval, if necessary, by the relevant tax authorities of the Plan and the
     Custodian, in accordance with the Tax Laws. It is also clarified that the
     Plan and the Option Agreement are subject to the provisions of the Tax Laws
     which accordingly shall be deemed an integral part of each, and which shall
     prevail over any term that is not consistent with the Tax Laws.<Page>
[LOGO]

                                 March 18, 2002

To Our Stockholders:

    On March 5, 2002, Sabre Holdings Corporation, through an indirect
wholly-owned subsidiary, commenced an unsolicited tender offer for all
outstanding shares of common stock of Travelocity.com Inc. at $23 per share in
cash. Having received prior notice of Sabre's intent to commence this tender
offer, the Travelocity board of directors met on March 4, 2002 and determined
that, if an offer was commenced at $23 per share, such an offer would be
inadequate. At this meeting and all subsequent meetings of the Travelocity board
of directors, the Sabre-affiliated directors abstained from voting with respect
to determinations concerning Sabre's proposed transaction.

    After a series of discussions between a special committee of independent,
outside directors of Travelocity created to review, consider and evaluate
Sabre's tender offer and the representatives of the special committee, and Sabre
and its representatives, Sabre announced on March 18 that it was increasing its
tender offer price to $28 per share.

    The special committee and the board of directors of Travelocity, with two
directors voting for, six directors abstaining and one director voting against,
have now concluded that the revised Sabre tender offer is adequate. The special
committee and the board recommend that you carefully evaluate the fairness and
terms of the offer. It is the recommendation of the board of directors of
Travelocity and the special committee that you accept Sabre's revised offer and
tender your shares to Sabre in the revised offer.

    The special committee and the board, with six directors abstaining and the
remaining directors voting for, determined on March 4 that a $23 offer would be
inadequate. In making such determinations, the special committee and the board
relied on several factors, including those described in the press release issued
March 4, 2002 and filed as an exhibit to the attached Schedule 14D-9.

    In reaching its determination that the revised offer of $28 a share is
adequate, the board of directors and the special committee considered the
following additional factors:

    - FINANCIAL ANALYSES AND OPINION OF SALOMON SMITH BARNEY. The board and the
      special committee considered financial analyses of the offer price
      performed by Salomon Smith Barney and the opinion of Salomon Smith Barney
      that, as of the date of the opinion, based upon and subject to the
      assumptions, considerations and limitations set forth in the opinion, the
      offer price of $28 per share was fair, from a financial point of view, to
      Travelocity's stockholders, other than Sabre and its affiliates.

    - TRAVELOCITY'S LONG-TERM VALUE. The board and the special committee were
      familiar with the business, financial condition, prospects and current
      business strategy of Travelocity, the nature of the industry in which
      Travelocity operates and Travelocity's strong position in this industry.
      The board and the special committee noted a number of related matters,
      including the following:

       - Travelocity's position as a leader with the most well-recognized brand
         in the online travel industry, which is growing rapidly as the
         traditional travel agency business is declining;

       - Travelocity's business plan, which focuses upon high-margin
         diversification (through, for example, merchant model initiatives) and
         other possible value-enhancing initiatives aimed at seizing market
         opportunity and increasing earnings per share growth; and
<Page>
       - Travelocity's increasing ability to leverage its scale, which has aided
         in Travelocity achieving profitability, excluding certain special
         items, for 2001.

    - RELATIONSHIP OF THE OFFER PRICE TO CERTAIN HISTORICAL MARKET PRICES. The
      board and the special committee considered the relationship of the offer
      price to certain historical market prices of Travelocity's shares. The
      board noted that the $28 per share offer price represents an approximate
      45.83% premium from Travelocity's closing price on February 15, 2002 (the
      last trading day prior to Sabre's initial announcement of its proposed
      offer), an approximate 25.50% premium above Travelocity's February 15th
      trailing 30-day average closing price of $22.31, and an approximate 15.23%
      premium above Travelocity's February 15th trailing 60-day average closing
      price of $24.30.

    In making its recommendation to you to accept the revised offer, the board
of directors and the special committee also considered the following:

    - STRATEGIC ALTERNATIVES. The board and the special committee took into
      account that Sabre and its affiliates currently own approximately 70% of
      the voting power of Travelocity and recognized that any alternative
      transaction was impossible without the consent of Sabre and its
      affiliates. The board and the special committee considered that Sabre has
      stated that it had no current intent to sell any of its equity interests
      in Travelocity nor was Sabre willing to explore the possibility of another
      party making an investment in Travelocity. Accordingly, the board and the
      special committee concluded that an acquisition of Travelocity by a third
      party was not a feasible alternative.

    - ACCESS TO CAPITAL. The board and the special committee considered
      Travelocity's increasing need for capital to expand its business in
      accordance with its long-term business plan and current strategy in the
      face of competition from better-capitalized entities.

    - TIMING OF THE OFFER. The board and the special committee took into account
      the timing of the Offer. This included a consideration that Travelocity's
      earnings and share price, like those of other travel companies, had been
      adversely affected by the economic conditions associated with the attacks
      of September 11, 2001, especially as they related to the travel industry.
      The board believed that, while conditions in the online travel industry
      are improving, conditions in the overall travel industry remain quite
      volatile. The board also considered the potential for enhanced value that
      could result if Travelocity were able to consummate the acquisition of one
      or more merchant model businesses currently in various stages of
      negotiations or discussions.

    - INTERCOMPANY RELATIONSHIPS. The board and the special committee considered
      the terms of long-term agreements between Travelocity and Sabre and
      potential conflicts of interest arising out of those relationships. These
      are discussed in more detail in the attached Schedule 14D-9. The board
      also considered Sabre's acknowledged plan to converge the long-term
      strategies of Sabre with those of Travelocity and that such convergence
      could contribute to increasing conflicts of interest between Sabre and
      Travelocity should it remain a publicly-held entity.

    The board and the special committee, prior to expressing their positions
with respect to the offer, received advice from, opinions of, views or
presentations from, legal and financial advisors and Travelocity's management.
In making their recommendations, the board and the special committee remained
committed to protecting the best interests of Travelocity's non-Sabre
stockholders.

    Additional information with respect to the Sabre tender offer and the
matters considered by the board and the special committee is contained in the
attached Schedule 14D-9. We urge you to read that document in its entirety.

                                          Sincerely,

                                          /s/ F. William Conner

                                          F. William Conner
                                          CHAIRMAN OF THE SPECIAL COMMITTEE

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