Lima, April 2004

INKATERRA'S MACHU PICCHU PUEBLO HOTEL REPORTS ALL GUESTS SAFE IN WAKE OF SATURDAY LANDSLIDE

Monday, April 12, 2004:- A mud slide during the early hours of saturday morning destroyed several houses in Machu Picchu village (also known as Aguas Calientes) and blocked the railroad station. The train is the only land connection between one of the world's most legendary sites and the outside world.

Earlier, river monitoring personnel at Inkaterra's Machu Picchu Pueblo Hotel had detected a reduction in the water flow from the Alcammayo stream and immediately alerted townspeople. All hotel guests were evacuated to higher ground.

After close inspection of the site in the wake of the landslide, Inkaterra reports that:

The Machu Picchu Pueblo Hotel has suffered no damage and continues to operate normally.

All scheduled train services to Machu Picchu resume today.

The one-day interruption of train service made it necessary for hotel guests - as well as other visitors to Machu Picchu - to spend an extra night in Machu Picchu. The hotel assisted guests reschedule their travel arrangements and facilitated their calls overseas to assure families that they were safe and well.

The Machu Picchu Sanctuary is located in the Cusco Cloud Forest in the heart of the Andes. An alluvial zone, as are many mountain ranges worldwide, minor landslides during the raining season are not totally uncommon. In order to minimize potential hazards and to protect guests, the Machu Picchu Pueblo Hotel has long taken precautions by building on high ground, by reforesting the property, by constantly monitoring potential risky areas and by undertaking regular and comprehensive safety drills.

Inkaterra is working closely with the Municipality of Machu Picchu, Peru Rail and other parties to restore access to the town, to help rebuild the damaged areas, to assist the families of the ten villagers lost in this tragedy, and to ensure that visits to Peru's most legendary site are uninterrupted.

Sincerely,

INKATERRA