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Palace Resorts' Cancún and Cozumel Resorts Emerge Nearly Unscathed After Hurricane Emily Passes Over Mexico - Riviera Maya Resorts Sustain Damage and Undergo Repairs

Miami, FL, July 20, 2005 - Palace Resorts' line of all-inclusive resorts throughout Cancún and Cozumel emerged nearly unscathed following Hurricane Emily, a category 4 storm that passed over the Yucatan Peninsula on Monday in the early morning hours.

Palace Resorts reports that Moon Palace Golf & Spa Resort, Cozumel Palace, Cancun Palace, Sun Palace and Beach Palace sustained only minor damages and are open for business as usual. In fact, several of these resorts acted as temporary shelters for the thousands of displaced tourists during the hurricane.

Aventura Spa Palace and Xpu-Ha Palace, which are located in the Riviera Maya region of Mexico, were less fortunate, suffering significant damages. Both resorts are currently closed. The north section of Aventura Spa Palace is slated to reopen on September 30th, while Xpu-Ha Palace is scheduled to reopen on October 31st. All guests staying at these resorts during the time of the storm were evacuated safely to Moon Palace Golf & Spa Resort and there were no reported injuries.

"Our main concern was the safety and welfare of our guests," said Roberto Chapur, President of Palace Resorts. "We are very fortunate that everyone is safe. We are currently assessing all damages and hopefully will be able to provide further information on the condition of these two resorts to our partners and guests shortly."

Palace Resorts' newest property Playacar Palace, which was under construction at the time of the storm and slated to open in October 2005, also sustained damage. As a result, the grand opening has been delayed and a new date is yet to be determined. However, the 18-hole golf course at the Playacar Spa & Golf Club in the Riviera Maya did not suffer much damage and will open next week.

According to the National Hurricane Center in Miami, Hurricane Emily made landfall near Tulum, which is located approximately 100 miles south of Cancún, and the northern eye-wall passed directly over Cozumel.

Palace Resorts, the company that set the standard in five-star, all-inclusive resort accommodations, offers six all-inclusive properties in Cancún and the Riviera Maya. In May, Palace Resorts opened the new Cozumel Palace and in July the new Vallarta Palace, Palace's first property on Mexico's Pacific coastline. Le Blanc Spa Resort, a new luxury brand by Palace Resorts, will debut in August.

For more information contact (800) 635-1836 or visit www.palaceresorts.com.

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