STATEMENT FROM SPICE TRADE TRAVEL

Bangkok, 25 March 2004: Spice Trade Travel wishes to clarify recent reports that have appeared in the media and elsewhere concerning its operations and personnel.

On Friday 19 March 2004 Thai law enforcement authorities went to the offices of Spice Trade Travel where they removed computers and files and detained employees. Virtually all of the items removed from the offices at that time were returned later that same day.

Following a news conference held by Thai immigration police on Saturday morning, 20 March, four Thai newspapers published separate accounts of the incident. All of these stories included serious inaccuracies and some were filled with total fabrications. Further stories have appeared elsewhere, specifically in the Australian media, which have also been inaccurate and loaded with unfounded innuendo.

On Saturday, Robert Scoble, an Australian national, was charged with cooperating in the trade of obscene materials. In addition, a management trainee was charged with a work permit violation, and one other partner was also taken into custody for a work permit technicality (later dropped) but was subsequently charged along with Mr. Scoble. Spice Trade Travel does not believe that there is any evidence to implicate this partner and that he will be absolved of any wrongdoing in court. Spice Trade Travel firmly believes that this event was entirely due to an investigation of charges against Mr. Scoble which were raised by the Australian embassy in Bangkok and that other staff and partners were unfortunately swept up into this inquiry.

While allegedly obscene items were found in Robert Scoble's home, we have not seen nor can we comment on these. However, Mr. Scoble has acknowledged in writing that all questionable items held by the police were found in his home and that no such items were found in the offices of Spice Trade Travel. Mr. Scoble has since resigned all positions he held within the company.

Spice Trade Travel has neither been accused nor charged with any crime whatsoever. Spice Trade Travel remains open for business and there has been no interruption in customer service.

Those who know Spice Trade Travel or have been our customers know that we abhor the practice of sex tourism and that offering positive alternatives to this is the very foundation of our business. We are not now nor have we ever been involved in prostitution, pairing of our customers with local hosts or hostesses, or in the exploitation of children in any way.

Spice Trade Travel is extremely grateful for the generous support and offers of help we have received from our many friends in Thailand and abroad. We would like to thank them all for thinking of us at this difficult time. Spice Trade Travel looks forward to a timely and positive resolution of the legal matters resulting from this incident.