FEATURE/First Ever Luxury Holiday Survey Published by Elite Traveler; Luxury Spending Survey Finds Wealthiest Americans Very Optimistic.

Feature Editors/Business Editors

FEATURE...

NEW YORK--(BUSINESS WIRE)--Dec. 18, 2003

Elite Affluents to Spend over 27% More This Year Than Last

Elite Traveler, the world's leading luxury, travel and lifestyle publication for the Elite Affluent, released the results of the 2003 Luxury Spending Survey, which it commissioned and was conducted by the wealth management consulting firm of Prince and Associates. The results of the survey were announced by Mr. Douglas D. Gollan, President and Editor-in-Chief of Elite Traveler.

"Wealth is a relative term and the truly wealthy are spending 27% more this holiday season than they did last. This is indicative not only of their optimism with regard to the economy, but is a reflection of an evolving luxury lifestyle," said Mr. Gollan. The 2003 Luxury Spending Survey analyzed spending habits of 431 individuals who were segmented based upon their net worth as follows: Elite Affluent, those with a Net Worth in excess of $10 million; Upper Affluent Plus, individuals with a Net Worth between $5 and $10 million; and Upper Affluent, those with a Net Worth of $1-$5 million. Of those surveyed, 21.10% were Elite Affluent, 31.10% were Upper Affluent Plus and 47.8% were Upper Affluent.

Highlights from the 2003 Luxury Spending Survey, the first of its kind to focus specifically on the purchasing behavior of the wealthiest Americans, include:

-- The Elite Affluent tend to be more optimistic about the

economy, and over all categories measured, spend more

frequently and in much larger amounts.

-- Elite Affluents will spend over 27% more this year than last

on holiday purchases.

-- Elite Affluents are 7 times less likely than the Upper

Affluent and Upper Affluent Plus segments to be cutting back

on holiday purchasing expenditures.

Luxury spending patterns are consistent among the Upper Affluent and Upper Affluent Plus; however, luxury spending reaches an "acceleration point" with those individuals with a Net Worth in excess of $10 million. This group, the Elite Affluent, spend significantly more than the Upper Affluent and Upper Affluent Plus segments and constitute the "heavy users" of luxury products and services.

-- Individuals with a Net Worth in excess of $10 million almost

universally have a Household Income (HHI) above $400,000, and

nearly two-thirds of that group have a HHI above $1 million.

-- Elite Affluents are more likely to spend significantly on

travel to spas and health resorts during the holidays.

-- Elite Affluents are 1,517% more likely than the Upper

Affluent Plus and Upper Affluent segments to spend $5,000

or more on spas and resorts.

-- A full 10% of Elite Affluents plan to spend over $25,000

on spas and resorts.

-- Nearly two-thirds of Elite Affluents plan to spend over $5,000

on electronic purchases this holiday season and are 2,070%

more likely to be high spenders on photographic equipment than

the Upper Affluent Plus and Upper Affluent segments.

-- Elite Affluents are 300% more likely than the Upper

Affluent Plus to buy the latest in technology.

-- Elite Affluents are 2,609% more likely to spend over

$10,000 on electronics than the Upper Affluent Plus

segment.

-- Elite Affluents are 6,000% more likely to spend over $10,000

on holiday purchases of jewelry and watches than the Upper

Affluent Plus.

-- 50.6% of the Elite Affluents plan to spend $25,000 or more

on jewelry and watches.

-- Over 35% of the Elite Affluents intend to spend over

$50,000 on holiday purchases of jewelry and watches.

-- Elite Affluents plan to spend a significant amount of money on

wines and spirits during the holiday season.

-- Over 1 in 4 of the Elite Affluents plan to spend more than

$10,000 on wine and spirits.

-- Nearly 2 in 3 of the Elite Affluents will spend over

$5,000.

-- Elite Affluents are 288% more likely than Upper Affluents to

spend at least $5,000 on men's fashion.

-- Elite Affluents are 5 times more likely than the other

segments to spend over $25,000 on men's fashion for the

holidays.

-- Elite Affluents are twice as likely to spend between

$6-10,000 on holiday fashions than the Upper Affluent

Plus.

Elite Traveler will continue to monitor these purchasing trends, and will conduct the survey on a semi-annual basis. This survey represents an ongoing dialogue the magazine has created to meet the needs of the evolving luxury lifestyle market. To maintain its brand leadership, Elite Traveler will periodically make the results of its surveys available.

About Elite Traveler:

Elite Traveler is a bi-monthly luxury travel and lifestyle magazine published exclusively for the International community of Elite Affluent consumers ($1.1 million+ household income). Launched in 2001, each issue of Elite Traveler explores subjects that embody the essence of luxury -- the best in travel, fashion and jewelry, automotive, private jets and yachts. Elite Traveler is distributed exclusively through private jets, mega yachts, premier country clubs, first-class lounges, luxury spas, professional sports locker rooms and its subscriber-base. For more information, visit www.elite-traveler.com.

About Russ Prince & Associates:

Prince & Associates is the leading authority on the ultra-affluent. Chairman Russ Prince has authored over 25 books on financial strategies for the wealthy. Mr. Prince is a contributor for Institutional Investor and serves as an advisor for Personal Financial Advisors to the wealthy. More information on Russ Prince of Prince & Associates can be found at http://www.iihighnetworth.com/rapbio.asp.