Long Botham Boats Releases President's Report

"The Company recorded a profit of $646,798.00 which represents a decline of $4,897.00 on the previous year. Clearly, any such decline is worrisome but having regard to the fact that our traditional busy season has been dramatically curtailed since September 11th 2001, we cannot complain given the number of months of off-season has increased exponentially. Tourism numbers did improve in May and June but we did not see a commensurate increase in spending. Finally, Hurricane Fabian brought the already abridged "peak" season to a screeching halt on 5th September, 2003.

Continuing in this vein, we must also advise that the Horseshoe Bay concession was not renewed and the Lease expired on 31st December, 2003. While the loss will in the near term affect the bottom line, we are pleased to note that the Pantry continues to perform well and may prove the focus of our attention over the next year as we consider viable opportunities to improve profit margins.

On this score, our subsidiary, Little John Limited trading as The Robin Hood, is functioning well in that it is maintaining market share and servicing its debt. We are confident that once the debt is retired, it will prove a worthy successor to the Horseshoe Beach concession. Long Botham has been able to retire its Bank debt, resulting in both a timely and significant reduction in cash flow requirements.

In any event, there may be some cause for optimism on the tourism front as we anticipate that by Spring of 2004 or shortly thereafter, both the Southampton Fairmont and Sonesta will re-opened, which can only bode well for our businesses and the Island's tourism in general."

Signed, W. Paul King, President and Chief Executive Officer