Abercrombie & Kent and Preferred Retreats Agree to Discontinue Name-Licensing Agreement

Date: August 19, 2005

Preferred Retreats and Abercrombie & Kent announced today that they have mutually agreed to discontinue an existing licensing agreement between the two companies. The agreement, initiated in April 2003, gave Preferred Retreats, an operator of destination clubs, the right to use Abercrombie & Kent's brand name for marketing of its Private Retreats and Distinctive Retreats Clubs.

"We have reached a natural conclusion to this partnership with the sellout of our first two clubs," said Rob McGrath, Chief Executive Officer of Preferred Retreats. "The two clubs will continue to operate as they have in the past with no changes. Having just launched Legendary Retreats, a Tanner & Haley Destination Club, we are now focused on expanding the Tanner & Haley brand and its unique identity."

"Our long term business strategy now requires that we maintain full control over our valuable brand name," said Geoffrey Kent, Chairman and Chief Executive Officer of Abercrombie & Kent.

Although the licensing agreement has been discontinued, Preferred Retreats and Abercrombie & Kent have mutually agreed to continue the current arrangement of allowing existing members of the two Retreats clubs to continue booking Abercrombie & Kent Tours on the same basis as in the past. "The Preferred Retreats Clubs licensing agreement provided for this service and Abercrombie & Kent will continue offering it to existing Preferred Retreats club members," Mr. Kent said.