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Banyan Tree and Taj Hotels - The following are official updates as of December 27th, 2004 from Sheila Donnelly & Associates/SDA International clients affected by the tsunamis that hit Southern Asia Sunday morning local time.

BANYAN TREE: TSUNAMI WAVES IN PHUKET, MALDIVES AND SRI LANKA

BANYAN TREE OFFICIAL STATEMENT

The Banyan Tree Group manages Banyan Tree and Angsana resorts in Phuket, Maldives and Sri Lanka. Some resorts were affected by the tsunami with property damages. Preliminary resort assessment in Phuket and Maldives indicates no significant property damage.

Laguna Phuket

There are five resorts, including Banyan Tree Phuket in the Laguna Phuket area. Limited property damage has been found in three of the resorts -- Sheraton Grande Laguna Phuket, Dusit Laguna and Laguna Beach Resort. One guest is currently missing.

Mixed media reports regarding the extent of damage in the Laguna Phuket development which Banyan Tree Holdings owns and operates have been confusing. This should clarify matters.

- Banyan Tree Phuket has been left unscathed. Sands Restaurant, the resort's beach bar and snack restaurant, was damaged.

- Allamanda Laguna Phuket beach also is not affected.

- Laguna Phuket has been spared the full force of the tsunami, as it is protected by the headland in the South.

- Resorts within Laguna Phuket that have been affected are Sheraton Grande Laguna Phuket, Dusit Laguna Resort and Laguna Beach Resort. The damage is contained.

- Laguna Phuket in total has 1100 guest rooms. Only 50 rooms along the beach were affected.

- Dusit Laguna's beach restaurants have been damaged. Banyan Tree can confirm damage to furniture, furnishing and windows.

- Dusit Laguna Resort has reported one missing guest.

- All five hotels are open and operational.

Maldives

Impact on Banyan Tree Maldives Vabbinfaru and Angsana Maldives Ihuru has been minimal. The waves were broken by the reefs, which are far away from the resorts. The surge of water and mud damaged the jetty at Banyan Tree Maldives Vabbinfaru. The jetty was repaired within 24 hours.

Some of the villas at Angsana Maldives Ihuru were affected by flooding but they have been cleaned up and are operational.

There have been no casualties at Banyan Tree and Angsana resorts.

Sri Lanka

While Sri Lanka has been hit by the tsunami, Colour of Angsana's Deer Park Hotel, which is situated in the Polonnaruwa district in the Northeastern part of the island was not affected at all. It is approximately 4-5 hours inland with no beaches nearby. The roads to Deer Park Hotel are also clear.

The opening of Angsana's Swanee Hotel located in Sri Lanka's Beruwela beach area (currently at the final stages of construction) is delayed to the later half of 2005. There has been damage to the ground floor, including lobby area and guest rooms. The design and construction team will resume work once debris has been cleared.

There have been no casualties at Banyan Tree resorts in Sri Lanka.

Hourly updates from all five resorts under the Laguna Phuket Development, Banyan Tree and Angsana Maldives and Swanee Hotel in Sri Lanka will be provided as received.

-END-

CONTACT:

Kalai Natarajan, Banyan Tree corporate communications
E-mail: Kalai.Natarajan@banyantree.com

OR: Diana Moody, SDA International
E-mail: Diana@sheiladonnelly.com

OR: Sheila Donnelly Theroux
E-mail: Sheila@sheiladonnelly.com

TAJ HOTELS, RESORTS & PALACES
STATEMENT UPDATES POSTED ON http://www.tajhotels.com/

There have been no casualties or injuries to guests or staff at any of the Taj Hotels in the affected areas particularly in the Maldives and Sri Lanka. Our operations at Taj Fisherman's Cove in Chennai, the three Taj hotels in Sri Lanka and Taj Coral Reef in Maldives are functioning normally.

In an effort to enable restoration of all facilities to Taj standards, we will be temporarily suspending operations at Taj Exotica Resort & Spa, Maldives for a period of about two months. As a precautionary measure, we have offered to provide alternate transport to our guests who would like to reach Chennai, India. We have chartered an aircraft, which is due to land this evening in Male to bring back guests and our staff. At Chennai, we are making arrangements to assist them for their onward journeys.

All other Taj hotels across India are unaffected and are functioning with business as usual.

We are deeply saddened by the devastation caused due to the tsunamis across South and South East Asia including Tamil Nadu and parts of coastal south east India. We continue to extend our full support to local authorities.

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