reported strong earnings in first quarter results released yesterday.

Orient Express completed its initial public offering on August 9, 2000 and was listed on the New York Stock Exchange the following day.

For the quarter ended September 30, 2000, earnings before interest, tax and depreciation (EBITDA) were $22.6 million, up 14 percent from the prior year period, on revenue of $73.3 million, while net income was $10.7 million.

In the prior year period EBITDA was $19.8 million on revenue of $65.3 million, and net income was $9.9 million. Earnings per share (EPS) were $0.37 in the latest quarter. EPS comparisons with prior year are not meaningful in view of the changes in equity and debt structure made before the initial public offering (IPO).

Chairman James B. Sherwood said the result was ahead of consensus forecasts and had been achieved despite the weakening of the euro against the US dollar.

Fourteen of the company's 35 properties are in Europe. He indicated that the weakening of the Euro bodes well for 2001 because costs in dollar terms have declined while rates in dollar terms will be adjusted upward.

EBITDA in US dollars of European hotels both in the third quarter and for the nine months were approximately the same this year as last, reflecting stronger performance in local currencies.

Mr. Sherwood noted that same store revenue per available room (REVPAR) growth at the European hotels was 14 percent for the quarter and 12 percent for the nine months in local currency.

For the North American properties the third quarter is the low season at the Windsor Court, `21' Club and La Samanna.

Tourist trains and river cruising were also strongly ahead of the year earlier periods.

Mr. Sherwood said that on September 18, 2000 the company had purchased the historic Granary of Venice adjacent to the Hotel Cipriani for about $2.5 million.

"This property will enable the hotel to expand its banqueting, conference and restaurant facilities in addition to permitting a number of additional rooms to be built, and should make a contribution to profits in 2001, increasing in the following years as the build-out continues,'' he said.

He indicated that negotiations were well advanced towards acquiring, probably in the first quarter of 2001, two additional hotel properties.

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