STATEMENT

It is with deep regret that Euro Prix Yachting Ltd announces the cancellation of the 2004 Euro Prix race.

Despite efforts by all partners and parties involved, the many skippers and national teams who have expressed interest in entering the race have been unable to secure sufficient sponsorship to confirm their entries. Edward Leask, Director of Euro Prix Yachting Ltd: “We are deeply grateful to all our partners who have given so much to support this wonderful new concept, in particular our title sponsor Timberland who has invested so much energy and time into making the event a success, and to the Port Authorities of Sitges, Cascais, La Rochelle, Portsmouth/Cowes, Rostock/Warnemunde and Oslo who have expressed interest in staging the race.”

“We recognise that we (EYL) under estimated the difficulties and challenges for teams to raise sponsorship for the event within the timescale we (EYL) set. It was, and is, our intention to provide a lower cost commercial opportunity for European off shore yachting. We strongly feel Euro Prix will be a truly good investment for commercial companies in the future, compared to the continually soaring cost of other races, and we will be working hard to deliver an even more attractive package to potential sponsors in the future.”

Richard O Rourke, Vice President and Managing Director of Timberland Europe: “Timberland is deeply disappointed that such an exciting venture has failed to realise its potential. We had been looking for a suitable pan-European sponsorship for almost 15 years. We entered into this relationship with high hopes to deliver an exciting event to the public, and to open up the yachting community to new ideas and ventures, in an event which shared so many of our key brand values.”

“Timberland is however committed to continuing its stated mission to support opportunities for disabled children to enjoy the experience of sailing. Hopefully with the support of the ports, we will continue to support sailing events for disabled children in Sitges, Cascias, Portsmouth and in Oslo.”

“The product ranges that we had begun to develop for Timberland Euro Prix this year, will stand us in good stead as we continue to develop more sport focused products in Spring 2005, delivering apparel and footwear that satisfied everyone who wants to enjoy the benefits of the marine environment, whether than be on shore or off shore.”