Four Seasons also signed a letter of intent with SIHL and its parent company, Shanghai Industrial Investment (Holdings) Co., Ltd. (``SIIC'') for the hotel management group to acquire a minority interest in the new hotel.

The new property is being developed and constructed by SIIC. The superstructure is expected to be completed by the end of this month and the opening is scheduled for July 2000. To be named Four Seasons Hotel Shanghai, the new Hotel is situated at the civic center in Shanghai at the intersection of Weihai Road and Shimen Road, near the core business and shopping center of the city and the Municipal Government Building. Upon completion, the new Hotel will be the first Four Seasons hotel in mainland China.

Vice Mayor of Shanghai Chen Liangyu today had a meeting with a Four Seasons delegation led by Isadore Sharp, Chairman and Chief Executive Officer of Four Seasons Hotels and Resorts. Mr. Chen welcomed Four Seasons' participation in the management and investment in the Shanghai hotel project. He also appreciated the cooperation between Four Seasons and Shanghai Industrial which will further promote the prosperity and development of the tourism industry in Shanghai.

Mr. Chen added that as SIIC is the only overseas window company of the Shanghai Municipal Government, the government will continue to support SIIC in carrying out its function as a bridge between local and overseas markets and developing into an international company.

Commenting on the joint venture, Mr. Sharp said, ``The Shanghai project is yet another milestone for Four Seasons Hotels and Resorts as we continue to expand our portfolio in the world's leading financial centers. With the continued investment in the civic center of Shanghai, the completion of new commercial development and the opening of a major new international airport, visitation to Shanghai will increase dramatically -- and with it, the demand for luxury accommodations. We are confident that Four Seasons Hotel Shanghai will bring a new level of service to its business and leisure visitors.''

Cai Lai Xing, Chairman of SIHL, added, ``This Shanghai hotel project represents an important step in SIHL's diversification to the hotel and tourism business sector. As Shanghai is assuming an increasingly important role as one of the key financial and commercial centers in the Asia-Pacific region, we see a surging demand for top-grade hotel accommodations. We are positive that under the professional management of Four Seasons, who will also become a shareholder of the venture, the new hotel will play a significant role in the development of the hotel and tourism industry in Shanghai. We are pleased to see the participation of Four Seasons in contributing to the economic growth of the largest city in China.''

Four Seasons Hotel Shanghai will feature approximately 440 guest rooms, a club lounge, four restaurants, a roof-top entertainment bar and dining room, health and fitness facilities (including an indoor swimming pool and special spa treatment rooms), a business center and extensive meeting space (approximately 17,000 square feet). It will be a stand-alone hotel, consisting of a four-story podium level that supports a 34-story guest room tower.

Conveniently located in central Shanghai just off the exit from the North-South Elevated Expressway, the hotel also will be within 15 minutes walking distance of Huaihai Road (the city's most prestigious shopping district) and a 30-minute drive to the airport.

Four Seasons Hotels and Resorts is the world's leading operator of luxury hotels and currently manages 42 properties in 18 countries, primarily under the Four Seasons and Regent brand names. In 1997, Four Seasons added a hotel in Atlanta, Georgia to the portfolio, and opened a major resort, together with its first vacation ownership development, in Aviara (Carlsbad), California. In 1998, Four Seasons acquired management of The Ritz Hotel in Lisbon, opened its second resort in Bali (at Sayan), and assumed management of the Kuda Huraa Reef Resort in the Republic of the Maldives. Expected openings in 1999 include hotels in Las Vegas, Nevada; Paris, France (the reopening of the George V); Canary Wharf in London, England; and Cairo, Egypt (the company's first development in the Middle East); and resorts in Punta Mita, Mexico and Scottsdale, Arizona (both resorts will include vacation ownership developments). While most hotels bear the respective names of Four Seasons or Regent, some do not, including The Ritz-Carlton in Chicago and The Pierre in New York. Four Seasons Hotels Inc. is traded on the New York Stock Exchange under the ticker symbol ``FS'' and the Toronto and Montreal stock exchanges under the ticker symbol ``FSH''. 

SIHL is a diversified conglomerate listed on the Stock Exchange of Hong Kong. It is also one of the 33 Hang Seng Index constituent stocks. In addition to hotel and tourism businesses, SIHL is engaged in consumer products manufacturing, automotive parts manufacturing, commercial retail, infrastructure investment and high technology projects. Its investment projects are primarily located in Shanghai and Hong Kong. The company's consolidated net asset value stands in excess of HK$10 billion (approximately US$1.29 billion) and its after-tax earnings in 1997 was HK$1,016 million (approximately US$131 million).

SIHL's parent company, SIIC, is the only window company of the Shanghai Municipal Government and also Shanghai's largest conglomerate overseas. Incorporated in Hong Kong in 1981, SIIC today holds interests in more than 270 companies worldwide. 
SOURCE Four Seasons Hotels Inc.