Four Seasons redeems Liquid Yield Option(TM) Notes

Four Seasons redeems Liquid Yield Option(TM) Notes 


TORONTO, Sept. 24  /PRNewswire-FirstCall/ -- Four Seasons Hotels Inc. (TSX
Symbol "FSH"; NYSE Symbol "FS") today announced that it has redeemed all of its
Liquid Yield Option(TM) Notes ("LYONs") due 2029 (Zero Coupon - Subordinated:
CUSIP 35100EAD6) on September 23, 2004 for US$328.73 cash per US$1,000
principal amount at maturity (the redemption price being the issue price plus
interest that is accrued but unpaid to but excluding September 23, 2004) for an
aggregate payment of US$215,450,957.

In accordance with Canadian generally accepted accounting principles, Four
Seasons will allocate the consideration paid on the redemption to the liability
and equity components of the LYONs based on their relative fair values at the
date of redemption. Four Seasons anticipates that it will recognize a pre-tax
accounting loss of approximately $14.6 million related to the debt component of
the LYONs (representing the difference between the carrying value of the debt
component and the relative fair value of the debt component - estimated at the
present value of the amount due on maturity, using an assumed 25-year interest
rate of 8.474% per annum, compounding semi-annually). This loss will be
recorded in the statement of operations of Four Seasons in its third quarter.
In addition, Four Seasons anticipates that it will recognize a pre-tax
accounting gain on the extinguishment of the equity component of the LYONs of
approximately $8.1 million. This gain will be recognized in contributed surplus
in the third quarter. The net impact on shareholders' equity from the
extinguishment of the debt and equity components of the LYONs is anticipated to
be a reduction of approximately $6.5 million.

All dollar amounts referred to in this news release are in Canadian dollars
unless otherwise noted.

With a history spanning four decades and a portfolio that extends worldwide,
Four Seasons Hotels and Resorts is the world's leading operator of luxury
hotels, currently managing 64 properties in 29 countries.

This news release contains "forward-looking statements" within the meaning of
federal securities laws. These statements concern anticipated future events,
results, circumstances, performance or expectations that are not historical
facts. These statements are not guarantees of future performance and are
subject to numerous risks and uncertainties that can affect our actual results
and could cause our actual results to differ materially from those expressed or
implied in any forward-looking statement made by us or on our behalf. These
statements are made as of the date of this news release and, except as required
by applicable law, we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise. 

DATASOURCE: Four Seasons Hotels and Resorts



CONTACT: Douglas L. Ludwig, Chief Financial Officer and

Executive Vice President, [phone]; Barbara Henderson, Vice President

Taxation and Investor Relations, [phone]

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