ATLANTIC SAIL EXPO® WEATHERS SNOWSTORMS AND RECORD LOW TEMPERATURES
---Sales reported at first major all-sail show of year help industry detect trends for 2004

January 22, 2004 -- Snowstorms and winter temperatures that reached record lows swept over the Northeast during Atlantic SAIL EXPO, a four-day sailboat show held at the Atlantic City (NJ) Convention Center from January 15-18. But the climate inside the exhibition hall was definitely sunnier.

Sailing enthusiasts from the mid-Atlantic region came to this four-day show to see sailboats, take seminars, and find a slice of summer. But exhibitors came searching for a forecast of a different kind: a sign that the upward trend in sailboat sales bolstered by a strengthening economy will continue into 2004. Many exhibitors left Atlantic City with reason to be optimistic.

"In 2003, we had one of our strongest years [at this show]. But this year`s record could prove to be better than last. This show was a good start for the year ahead," said Jeff Jorgensen of Bay Yacht Agency, the Annapolis
(Md.) dealer for Jeanneau. Jorgensen left the show with several sales in hand, for boats ranging 40 to 43 feet in length. Jorgensen`s final determination on show sales will require several weeks, to see if strong leads he collected at SAIL EXPO will result in first-quarter sales.

As the first major all-sail show of the year, Atlantic SAIL EXPO (ASE) is an important test ground and an opportunity for the sailing trade to see their customers face-to-face and gauge the mood for the next twelve months.

This year, boat manufacturers viewed the timing as critical for another
reason: while the media heralds the signs of an economic recovery, interest rates are still low. According to Bruce Mundle of Bavaria Yachts USA, boat buyers` desire to catch a favorable tide on low rates may be creating a sense of urgency to purchase or trade up soon.

"This show went very well for us," said Mundle, after returning to his Annapolis office and reviewing leads from the show. "We saw a lot more people looking to buy in the next three to twelve months. . . In the past, there`s been more uncertainty. But I sense people now feel more confident in the future of the economy. Some buyers know interest rates may be rising and I imagine they are thinking, the difference between what I am paying now and what I could pay on a new boat is quite acceptable."

Sales of big boats are a key index, as each sale generates the need for a range of accessories such as winches, rigging, deck hardware, and other equipment. Exhibitors in other categories found that business had picked up over their results at ASE 2003.

In the small-boat arena, Scott Steele of Vanguard Sailboats gauged sales at this year`s show to be an improvement over those at ASE 2003. Offshore Sailing School CEO Doris Colgate tallied their sales of instruction courses at an 8% increase over last year`s show.

Despite reports of solid sales, the number of exhibitors was down compared to last year`s show, according to Sail America Executive Director Scot West. Although pre-show ticket sales had improved by 1