Iberostar Hotels Mexico Report Damage to Properties From Emily

. October 14, 2008

YUCATAN, Mexico Jluy 20, 2005. There are reports that Iberostar Hotels & Resorts along the Riviera Maya in Mexico's Yucatan Peninsula sustained some damage as a result of Hurricane Emily and that guests who did not vacate the four resorts in the Playa Paraiso complex along the Riviera Maya and the two properties in Playacar near Playa del Carmen were housed in the convention centre or the resorts' nightclubs, allegedly never without electricity or water, even at the height of the storm.

The hotels expect to return to normal operational standards by this weekend, July 22-24. The Iberostar Playa Paraiso Golf Course designed by P.B. Dye was damaged by a number of fallen trees and workers are clearing debris and repairing damage to the fairways and greens. The course is expected to re-open as soon as the course meets Iberostar's and P.B. Dye standards.

The island of Cozumel suffered more damage from the brunt of the storm than the mainland and the destination, in general, will take longer to recover from the effects of Hurricane Emily on the infrastructure of the island's operations. Given these circumstances, the decision has been made to close the Iberostar Cozumel for repairs to the gardens, pools, restaurants and public areas until early November and to use this period for planned renovations and enhancements to the property.

John Long, Vice President for Sales and Marketing at Iberostar Resorts & Hotels in the Caribbean stated that, "We prefer not to re-open until we are satisfied that we can provide the level of service and overall vacation experience that meets our high standards and surpasses our guest's expectations."

Mr. Long noted that all five Iberostar resorts in the Dominican Republic are operating as usual with no ill effects from the storm to that island.

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