EXHIBIT 1













                               [FOUR SEASONS LOGO]
                            FOUR SEASONS HOTELS INC.




                                  FORM 51-102F2
                             ANNUAL INFORMATION FORM






                                MARCH 14TH, 2005










<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                            PAGE

BUSINESS OF FOUR SEASONS......................................................1
MANAGEMENT OPERATIONS.........................................................2
   Hotels and Resorts.........................................................2
     Management...............................................................2
     Sales, Marketing, Advertising and Reservations...........................3
   Residence Clubs and Other Branded Residential Properties...................3
   Management Resources.......................................................4
   Employees..................................................................4
OWNERSHIP OPERATIONS..........................................................4
INTELLECTUAL PROPERTY.........................................................5
BUSINESS AND GROWTH STRATEGY..................................................5
   Growth from Existing Properties............................................6
   RevPAR Statistics - Core Hotels............................................6
   New Hotel and Resort Opportunities.........................................6
   Residence Clubs and Other Branded Residential Properties...................7
   Capital Deployment.........................................................7
COMPETITIVE STRENGTHS.........................................................7
   Strong Brand Recognition...................................................7
   Superior Hotel Operating Results...........................................8
   Strategic Relationships....................................................8
   Management Focus...........................................................8
   Global Presence............................................................8
   Strong Management Team.....................................................9
FOUR SEASONS PORTFOLIO........................................................9
   Description of Hotels, Resorts and Residence Clubs.........................9
   Properties under Construction or Development..............................13
SUMMARY HOTEL OPERATING DATA.................................................15
OPERATING RISKS..............................................................17
   Geopolitical, Economic and Lodging Industry Conditions....................17
   Competition...............................................................17
   Dependence on Management Agreements.......................................18
   Dependence on Property Owners.............................................19
   Risk Associated with Expansion, Growth and New Construction...............19
   Investments in and Advances to Managed and Owned Properties...............19
   Debt Rating Risks.........................................................20
   Government Regulation.....................................................20
   Political Risk............................................................21
   Insurance.................................................................21
   Legal Proceedings.........................................................21
   Currency Exposure.........................................................22
   Seasonality...............................................................22
   Intellectual Property.....................................................23
   Risks Associated with Residence Club Business.............................23
   Dependence on Key Employees...............................................23
MATERIAL CONTRACTS...........................................................23
CORPORATE INFORMATION........................................................24
   Description of Share Capital..............................................24
     Dividends...............................................................24
     Rights on Dissolution...................................................24
     Voting Rights...........................................................24
     Take-Over Bid Protection................................................25


                                       (i)

<PAGE>

     Conversion..............................................................25
     Modifications, Subdivisions and Consolidation...........................25
   Transfer Agent and Registrar..............................................25
   Market for Securities.....................................................25
   Dividend Policy...........................................................26
   Convertible Senior Notes..................................................26
   Ratings...................................................................26
DIRECTORS AND OFFICERS.......................................................27
EXPERTS......................................................................29
AUDIT COMMITTEE INFORMATION..................................................30
   Audit Committee Charter...................................................30
   Composition of Audit Committee............................................30
   Education and Experience..................................................30
   Pre-Approval Policies and Procedures......................................30
   Audit and Audit-Related Fees..............................................31
   Tax Fees..................................................................31
   All other Fees............................................................31
CORPORATE CHART..............................................................32
ADDITIONAL INFORMATION.......................................................32

                                   -----------

                           FORWARD LOOKING STATEMENTS

     This document contains  "forward-looking  statements" within the meaning of
federal  securities laws,  including  RevPAR,  profit margin and earning trends;
statements  concerning the number of lodging properties  expected to be added in
this and future years;  expected  investment  spending;  and similar  statements
concerning  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,
including  those  described in our  management's  discussion and analysis and in
this document.  Those risks and uncertainties  include adverse factors generally
encountered in the lodging  industry;  the risks  associated  with world events,
including war, terrorism,  international conflicts,  natural disasters,  extreme
weather conditions and infectious diseases; general economic conditions,  supply
and demand  changes  for hotel  rooms and  residential  properties,  competitive
conditions  in the lodging  industry,  relationships  with  clients and property
owners, currency fluctuations and the availability of capital to finance growth.
Many of these risks and  uncertainties  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. All forward-looking
statements in this document are qualified by these cautionary statements.  These
statements  are made as of the date of this document 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.

                                   -----------

     ALL AMOUNTS REFERRED TO IN THIS DOCUMENT ARE IN CANADIAN DOLLARS UNLESS
     OTHERWISE NOTED. THIS DOCUMENT CONTAINS REFERENCES TO OUR CONSOLIDATED
     FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003 AND
      RELATED MANAGEMENT'S DISCUSSION AND ANALYSIS, WHICH ARE AVAILABLE ON
                             SEDAR AT WWW.SEDAR.COM.

                                   -----------


                                       (ii)

<PAGE>


                            FOUR SEASONS HOTELS INC.

Four Seasons Hotels Inc. was  incorporated  under the BUSINESS  CORPORATIONS ACT
(Ontario) on January 6, 1978.(1) Our registered and principal  office is located
at 1165 Leslie  Street,  Toronto,  Ontario,  Canada M3C 2K8. Our Limited  Voting
Shares are listed on the Toronto Stock  Exchange  under the symbol FSH.SV and on
the New York Stock Exchange under the symbol FS.

                            BUSINESS OF FOUR SEASONS

Four  Seasons  is one of the  world's  leading  managers  of luxury  hotels  and
resorts,  with a portfolio of 64 luxury hotel and resort properties  (containing
approximately  16,400  guest rooms) and three  Residence  Clubs.  (Interval  and
fractional  ownership  projects that are known as "Four Seasons Residence Clubs"
are referred to as "Residence  Clubs".) These properties are operated  primarily
under the Four  Seasons and Regent  brand names in  principal  cities and resort
destinations  in 28 countries in North  America,  the Caribbean,  Europe,  Asia,
Australia,  the Middle East and South America. In addition,  26 properties to be
operated under the Four Seasons brand name are under construction or development
in a further nine countries  around the world.  Nine of these new properties are
to  include  a  Residence  Club or  other  residential  component.  (For a chart
summarizing  the  hotels,  resorts,  Residence  Clubs and Four  Seasons  branded
residential   projects  that  are  managed  by  us  and  under  construction  or
development to be managed by us, see "Four Seasons  Portfolio".)  Our goal is to
offer  business  and  leisure   travelers  the  finest   accommodation  in  each
destination in which we operate.

We earn income primarily from management,  and to a significantly lesser extent,
ownership operations.  Under our management agreements, we generally oversee, as
agent for the property  owner all aspects of the  day-to-day  operations of each
hotel  and  resort  on  behalf of its  owner,  including  sales  and  marketing,
advertising,  reservations,  accounting,  purchasing,  budgeting and the hiring,
training and supervising of staff. In addition, we generally provide owners with
strategic  management  services,  assistance  with the sourcing of financing and
development  of new hotels and  resorts,  advice with  respect to the design and
construction  of new or  renovated  hotels  and  resorts,  assistance  with  the
refurbishment  of hotels  and  resorts,  support  and  advice  with  respect  to
management  information  technology  systems and  database  applications,  and a
centralized  purchasing  system for goods.  For  providing  these  services,  we
generally  receive a variety of fees,  including a base fee, an incentive fee, a
sales and marketing charge,  an advertising  charge, a reservation  charge,  and
purchasing  and  pre-opening  fees.  The base fee  usually  is  calculated  as a
percentage of the total  revenues of the property.  Incentive fees typically are
based on the property's profitability. (See "Management Operations".)

To further  capitalize  on the value of the Four Seasons  brand,  we license and
manage Residence Clubs and other Four Seasons branded residential  projects.  We
generally  receive fees for the use of the Four Seasons brand in connection with
the sale of the  interests in these  projects  and for services  provided in the
oversight of the sales and marketing  activities.  In addition,  we receive fees
from the owners of the interests for services provided in the ongoing management
of these projects.

-------------------------

1  The articles of Four Seasons Hotels Inc. were restated in 1986 to consolidate
   prior  amendments  and were  amended in 1989 to  subdivide  each  Subordinate
   Voting Share and each  Multiple  Voting Share on a 2:1 basis and to create an
   unlimited number of special shares  designated as First Preference Shares and
   Second  Preference  Shares.  In 1996 the  articles  were  further  amended to
   re-designate  the  Subordinate  Voting Shares as Limited Voting Shares and to
   create  4,171,924  special  shares  designated  as Variable  Multiple  Voting
   Shares,  which replaced and have  substantially the same rights,  privileges,
   restrictions  and conditions as did the Multiple  Voting Shares,  except that
   the number of votes per Variable Multiple Voting Share generally increases as
   Limited  Voting  Shares are issued and  dividends  on the  Variable  Multiple
   Voting  Shares will be in an amount per share  equal to 50% of the  dividends
   per Limited Voting Share.


                                      - 1 -

<PAGE>

As part of our business strategy, we make investments in, or advances in respect
of or to  owners  of,  properties  with  a  view  to  obtaining  new  management
agreements  or  enhancing  existing  management  agreements  where  the  overall
economic return justifies the investment or loan. We generally seek to limit our
total  long-term  capital  exposure  to no more  than  20% of the  total  equity
required for a property and typically can choose to have our ownership  interest
diluted if additional capital is required. We attempt to structure our ownership
interests  separately  from our management  interests to enable us to dispose of
ownership  interests as opportunities  arise,  without  affecting our management
interests.

                              MANAGEMENT OPERATIONS

HOTELS AND RESORTS

     MANAGEMENT

We  generally  manage our hotels and  resorts on behalf of our  property  owners
pursuant  to  separate  management  agreements  for each  property.  Under these
management  agreements,  we generally oversee,  as agent for the property owner,
all aspects of the  day-to-day  operations of each hotel and resort on behalf of
the owner, including hiring,  training and supervising staff,  maintaining sales
and  marketing,  as well  as  advertising,  efforts  and  providing  accounting,
purchasing and budgeting functions, providing support for management information
technology systems and database applications, and providing for the safekeeping,
repair and maintenance of physical assets.  We perform these services within the
guidelines contained in annual operating and capital plans that are submitted to
the owners of the hotels and resorts  during the last  quarter of the  preceding
year for their review and  approval.  For these  services,  we generally  earn a
number of fees  including  base fees equal to a percentage of gross revenues and
incentive fees based on the profits of the hotel or resort.

We have the  ability to earn  incentive  fees in 61 of the 64 hotels and resorts
under our management. These incentive fees are based on the profits of the hotel
or resort as determined in accordance  with the relevant  management  agreement.
Incentive fees were earned from 35 of our 63 hotels and resorts under management
during 2004, as compared to 33 of our 60 hotels and resorts under  management in
2003.

We generally  supervise  purchasing  at the hotels and resorts that we manage to
maintain a uniform  quality of goods  purchased and to control  hotel  operating
costs. We maintain a centralized  purchasing system and receive a fee calculated
as a percentage of the cost of goods  purchased  when this system is utilized by
the hotels and resorts under management.

Although the hotel and resort owners are generally responsible for financing and
managing  the  development  of the  hotels  and  resorts,  we  typically  play a
significant  pre-opening  role.  We provide  advice with  respect to the design,
construction and fitting out specifications of the hotels and resorts during the
development  stage to ensure that they meet Four  Seasons'  standards and earn a
variety of fees for these  pre-opening  services.  We may also assist  owners in
connection  with the  refurbishment  of the hotels and resorts  after opening in
return for a refurbishing fee.

Under our management  agreements,  the hotel or resort owner is responsible  for
funding  the hotel's or  resort's  operating  costs,  capital  expenditures  and
working  capital  requirements,  including  the  salaries  and  benefits  of all
employees.  The owner  typically  is required to set aside a  percentage  of the
gross  revenue  of the  hotel or  resort  each  year as a  reserve  for  capital
expenditures. Those percentages typically range from 3% to 5% of hotel or resort
annual  gross  operating  revenues.  We propose an  operating  plan and  capital
expenditure  budget to the owner for approval on an annual basis. All structural
changes,  major  refurbishing  programs and major repairs  generally require the
separate approval of owners prior to implementation and may be carried out by us
or a third party.


                                      - 2 -

<PAGE>

Total fee revenues are  geographically  diversified around the world. The United
States is the only geographic segment which contributed more than 40% of all our
fee revenues in 2004.  The  diversification  of our fee  revenues has  increased
significantly  over the past 10 years.  With the  opening of hotels and  resorts
currently under construction and development around the world, we expect greater
diversification of fee revenues in the future.

     SALES, MARKETING, ADVERTISING AND RESERVATIONS

We are responsible for the development of overall sales and marketing strategies
for our  portfolio  of branded  hotels and  resorts,  which  includes  enhancing
international  awareness of the Four Seasons brand and  developing  local market
potential for specific hotels and resorts. Our marketing efforts are coordinated
through our  headquarters  in Toronto and are targeted at the luxury  segment of
the market worldwide.  Our customer mix consists of business  travelers,  groups
(including  corporate and  incentive),  and leisure  travelers.  These  customer
segments  accounted for an estimated  32%, 30% and 38%,  respectively,  of total
room  nights in 2004.  Our  corporate  marketing  staff  oversees  planning  and
implementation of hotel and resort marketing  programs and also the training and
development for the global sales force and the hotel sales and marketing  staff.
We also provide supplementary  oversight sales support to the four Regent hotels
that we manage (see  "Intellectual  Property") with core marketing  services for
the Regent brand being provided by Carlson Hospitality Group of Minneapolis.

We have a global  sales  force of  approximately  50 sales  professionals  in 16
offices  worldwide  including,   Atlanta,   Bahrain,   Chicago,  Dallas,  Dubai,
Frankfurt,  Hong Kong, London, Los Angeles, New York, Paris, Singapore,  Sydney,
Tokyo, San Francisco and Washington,  D.C. Key objectives of our sales force are
to attract groups and corporate  business  travelers for the hotels and resorts,
as well as to establish  personal  contact  with  nationally  recognized  travel
agencies.  In addition,  a total of over more than 450 sales  professionals  are
employed  locally at hotels and  resorts  that we  manage.  Our local  marketing
strategy is concentrated on developing rooms and food and beverage  business for
hotels and resorts locally and regionally,  and promoting the hotel or resort as
a centre of community  activity  with a view to  increasing  revenues from local
sources.

We also provide an international corporate advertising program that develops and
places  advertising  for Four  Seasons  branded  hotels and resorts and oversees
promotional  programs which benefit all the properties.  Our  advertisements are
designed to enhance consumer  awareness of our luxury service and the value that
such services provide to the business and leisure traveler.

We staff one reservation centre for all Four Seasons branded hotels and resorts,
while  Carlson  Hospitality  Group  provides core  reservation  services for the
Regent hotels. In addition,  our global reservation network provides reservation
services in the local language in 28 markets in major North American,  Asian and
European  cities.  Electronic  reservations  are  another key part of our global
distribution  network,  as our  reservation  systems are fully  integrated  with
international  airline booking systems.  The Internet is a growing  distribution
channel  which is  supported by our website -  WWW.FOURSEASONS.COM.  Our website
accepts  on-line  reservations  and also  refers  guests  to  other  reservation
channels.

We  receive  corporate  sales and  marketing  charges,  centralized  reservation
service charges and corporate  advertising  charges from our hotels and resorts,
thereby enabling us to recover substantially all of the costs of providing these
services.

RESIDENCE CLUBS AND OTHER BRANDED RESIDENTIAL PROPERTIES

We manage  the  Residence  Clubs and other Four  Seasons  branded  and  serviced
residential  projects  pursuant to management  agreements under which we oversee
the  management of the day-to-day  operations of the completed  projects and for
which we receive an ongoing management fee from the owners of interests. We also
oversee  the  sales  and  marketing  of the  Residence  Club  interests  and are


                                      - 3 -

<PAGE>

responsible  for the branding of the Residence  Clubs and the other Four Seasons
branded residential projects. For these services we receive fees generally based
on a percentage of the selling price of the interests.

MANAGEMENT RESOURCES

Each of our  properties  is  managed by a General  Manager  and  supported  by a
Regional Vice President  (who is also a General  Manager),  and other  corporate
Vice  Presidents.  The size of each  property's  management  team and its hourly
staff varies,  based on the size and business volume of the particular property.
Property  management  monitors  staffing  levels on an ongoing basis to optimize
service standards and labour productivity.

A General Manager is responsible for supervising the day-to-day  operations of a
single property, is a full-time employee at that property, and is compensated in
part based on the operational performance of that property. Our General Managers
report  directly to one of 16 Regional Vice Presidents or directly to the Senior
Vice President,  Operations,  the President Europe/Middle East, or the Executive
Vice President, Operations. Area Directors of Finance and Regional IT Directors,
each of whom is a full-time employee at a property that we manage, also devote a
portion of their time to regional  activities and providing  assistance to other
properties that we manage.  Corporate Area Directors or Vice Presidents of Human
Resources and Marketing complete each regional support team. We believe that our
regional  management  structure is a key component in our ability to deliver and
maintain  the  highest  and most  consistent  standards  of product  quality and
service at each of our properties in a cost effective  manner,  especially as we
expand globally.

From the corporate level, we provide each of our properties with the benefits of
management  services delivered by our network of highly experienced  executives,
corporate personnel and area managers. We also provide or arrange assistance and
training to each property's employees for administration,  operations, rooms and
guest service,  reservations,  maintenance and engineering,  human resources and
benefits.  Other  services  arranged by us include  advice and  assistance  with
accounting,  tax, legal,  risk  management,  treasury,  information  technology,
internal audit and credit services.

EMPLOYEES

We  directly  employ  and are  financially  responsible  for  approximately  500
individuals at the various  corporate  offices,  the worldwide sales offices and
the central  reservations  offices. In addition,  there are approximately 30,900
employees located at the 64 hotels and resorts and three Residence Clubs that we
manage.  All  costs  relating  to  property-based  employees,  including  wages,
salaries  and health  and  insurance  benefits,  are the  responsibility  of the
property  owners and are generally  paid out of the  operating  cash flow of the
property.  Management and corporate staff share responsibility for the selection
and training of property-based  employees and for ensuring,  through progressive
career  development,  an adequate  supply of mobile,  qualified and  experienced
staff to match the  growth of our  operations  internationally.  Maintenance  of
employee  communication,  motivation  and morale at high levels is  necessary to
meet  the  expectations  of our  clientele.  In this  context,  we have  devoted
significant  effort to  developing  customized  hiring  practices,  training and
career development programs and approaches.

Employees  at 22 hotels and  resorts  that we manage are  covered by  collective
bargaining agreements.

                              OWNERSHIP OPERATIONS

We hold ownership interests in, or have made advances in respect of or to, 30 of
the 64 hotels and resorts and all three of the Residence Clubs that we currently
manage,  including a 100%  leasehold  interest in each of The Pierre in New York
and Four Seasons Hotel Vancouver. We hold secured cash


                                      - 4 -

<PAGE>

flow loans in  connection  with Four Seasons  Hotel  London(2) and have advances
outstanding in connection with various properties,  including Four Seasons Hotel
George V Paris,  Four Seasons  Hotel Sydney,  Four Seasons Hotel San  Francisco,
Four Seasons Resort Nevis and Four Seasons Hotel Hampshire.

We work  closely with owners and  investors in  developing  new  properties  and
acquiring  existing  luxury  properties  that  we  will  manage.  To the  extent
required,  we will make investments or advances to secure  long-term  management
contracts  with a view to  expanding or enhancing  our  management  business and
where we believe the overall  economic  return to us justifies the investment or
advance.  We generally seek to limit our total long-term  capital exposure to no
more than 20% of the total  equity  required for a property.  We  structure  our
investments  to be able to have our interest  diluted if  additional  capital is
required.  We attempt to structure our ownership  interests  separately from our
management  interests  so as to be able to dispose of an  ownership  interest as
sale opportunities arise, without affecting our management interests.

                              INTELLECTUAL PROPERTY

In the highly  competitive  service  industry in which we operate,  trade names,
trademarks,  service  marks  and  logos  are very  important  in the  sales  and
marketing  of those  services.  We have a  significant  number  of trade  names,
trademarks,  service  marks and  logos,  and  significant  time and  effort  are
expended each year on  surveillance,  registration  and  protection of our trade
names,  trademarks,  service  marks and  logos,  which we  believe  have  become
synonymous in the lodging industry with a standard of attention to detail and an
unwavering dedication to excellence.

We have an arrangement with Carlson  Hospitality Group pursuant to which Carlson
owns and has the  exclusive  right to use the Regent  name,  and related  names,
trademarks,  service  marks  and  logos for new  development.  Pursuant  to this
arrangement  we retain the right to use the Regent  name and  related  marks and
logos at the four Regent  properties  we manage and,  in  consideration  for the
transfer of the ownership rights in the Regent name and related marks and logos,
we receive fixed annual  payments from Carlson.  The costs  associated  with the
maintenance of the Regent brand and marks are the obligation of Carlson.

                          BUSINESS AND GROWTH STRATEGY

Our core business strategy  continues to be to enhance our industry position and
overall  profitability through a focused,  international  expansion program that
capitalizes on the strengths of our core management  operations and the value of
our brand name.  We intend to continue to focus on growth and to seek to utilize
our competitive  strengths to increase  earnings,  cash flow,  property  owners'
returns,   and  shareholder   value  by  continuing  to  improve  the  operating
performance of our existing property portfolio,  by generating profitable growth
through the  acquisition  of new  management  contracts and by  capitalizing  on
opportunities  to leverage  our luxury brand name  through  compatible  business
extensions such as Four Seasons branded residential products.

We believe that the strength of our brand name,  our global  marketing  presence
and our operational  expertise result in average room revenue per available room
(RevPAR)(3) premiums and strong operating

-------------------------

2  See note 3(a) and (b) to Four Seasons' consolidated financial statements.

3  RevPAR is a commonly  used  indicator  of market  performance  for hotels and
   resorts and represents the combination of the average daily room rate and the
   average  occupancy rate achieved  during the period.  RevPAR does not include
   food and beverage or other ancillary revenues generated by a hotel or resort.
   RevPAR is the most commonly  used measure in the lodging  industry to measure
   the period-over-period performance of comparable properties.


                                      - 5 -

<PAGE>

profitability for luxury hotels and resorts that we manage and provide us with a
competitive  advantage in obtaining new management contracts  worldwide.  RevPAR
for Core Hotels(4) in the United States during 2004 was US$244,  54% higher than
the RevPAR of the United  States  luxury  segment as  compiled  by Smith  Travel
Research.

From 2001  through  the  latter  part of 2003,  the  travel  industry  worldwide
operated in a challenging environment.  Further tumultuous events for the travel
industry occurred in the first half of 2003: acts of terrorism,  war in Iraq and
infectious  diseases.  The impact of these factors, in addition to a weak global
economic  environment,  had a  significant  negative  impact  on  travel  demand
throughout  the world.  In 2004 broad based  improvements  in travel demand were
realized  on a world wide  basis.  Gross  operating  profit  margins of the Core
Hotels  under  management  also  improved  by 240 basis  points to 29.3%.  These
improvements  in hotel  operating  results  allowed us to increase  our earnings
before other operating items by 60.6% to $79.4 million.

GROWTH FROM EXISTING PROPERTIES

We believe  opportunities  will exist for growth  within our  existing and newly
opened  properties  by  increasing  overall  market  share and  RevPAR,  thereby
improving  the  properties'  profitability  and, in turn,  our fee  revenues and
ownership earnings. From 2003 to 2004, on a US dollar basis, RevPAR for all Core
Hotels increased by 15.5%.  During this period, on a US dollar basis, RevPAR for
Core Hotels in the United States, Other  Americas/Caribbean,  Europe, the Middle
East  and  Asia  Pacific  increased  8.7%,  18.2%,   20.6%,   52.9%  and  31.9%,
respectively.  On a local currency basis, as compared to 2003,  RevPAR for Other
Americas/Caribbean,  Europe,  the  Middle  East  and  Asia/Pacific  Core  Hotels
increased 18.0%, 10.0%, 58.7% and 27.6%, respectively.

REVPAR STATISTICS - CORE HOTELS

----------------------------------------------------------------------
REGION                   OCCUPANCY      AVERAGE ROOM       REVPAR
                                            RATE
----------------------------------------------------------------------
(In US$)               2004     2003     2004    2003   2004    2003
----------------------------------------------------------------------
Worldwide              68.5%    61.9%    $332    $308   $211    $183
----------------------------------------------------------------------
United States          70.5%    68.1%    $346    $330   $244    $225
----------------------------------------------------------------------
Other                  64.2%    56.1%    $302    $285   $180    $152
Americas/Caribbean
----------------------------------------------------------------------
Europe                 63.0%    59.5%    $520    $459   $343    $285
----------------------------------------------------------------------
Middle East            70.5%    47.7%    $171    $159   $121    $ 79
----------------------------------------------------------------------
Asia/Pacific           68.7%    56.7%    $258    $238   $127    $ 97
----------------------------------------------------------------------


NEW HOTEL AND RESORT OPPORTUNITIES

Having  established  a network  of  luxury  hotels  in many of the  world's  key
financial  centres,  we  expect  our  future  expansion  to occur  primarily  in
locations  that satisfy our  objectives of better  servicing the travel needs of
our existing customer base and attracting new international  business  travelers
to our managed

-------------------------

4  The term "Core Hotels" means hotels and resorts under management for the full
   year of both 2004 and 2003.  However,  if a "Core Hotel" has  undergone or is
   undergoing extensive renovation program in one of those years that materially
   affects the  operation of the property in that year, it ceases to be included
   as a "Core Hotel" in either year.  Changes from the 2003/2002 Core Hotels are
   the  additions of Four  Seasons  Hotel  Amman,  Four Seasons  Resort Sharm el
   Sheikh,  Four  Seasons  Hotel  Shanghai  and  Four  Seasons  Hotel  Tokyo  at
   Marunouchi,  and the  deletion of Four  Seasons  Hotel  Berlin,  Four Seasons
   Resort Santa Barbara,  Four Seasons Resort Scottsdale at Troon North and Four
   Seasons  Hotel  Washington  DC,  the  last  three of  which  were  undergoing
   extensive renovation programs that began in 2004.


                                      - 6 -

<PAGE>

hotels  and  resorts  worldwide.  We  expect  that  future growth will primarily
be in the form of new hotels and resorts,  or the conversion of existing  hotels
and resorts,  in Europe, the Middle East, South America and Asia/India,  as well
as selected  urban and resort  locations in the United States and the Caribbean.
We plan to  increase  the number of resorts  that we manage to serve the leisure
travel needs of our  customers,  which is expected to reduce the  seasonality of
our cash flows.  We  currently  have 26 new  properties  under  construction  or
development  and are  evaluating  numerous  other  management  opportunities  in
various locations around the world.

We believe that we will continue to have the  opportunity  to consider and enter
into appropriate new hotel and resort  management  agreements as a result of our
competitive  strengths.  In 2004,  we began  operations  at Four  Seasons  Hotel
Gresham Palace  Budapest,  Four Seasons Hotel Cairo at Nile Plaza,  Four Seasons
Resort  Costa Rica,  Four  Seasons  Resort  Provence  at Terre  Blanche and Four
Seasons Resort Whistler,  and in early 2005, we began operations at Four Seasons
Hotel  Hampshire.  We also expect to begin operating five additional  hotels and
resorts  in 2005 or early  2006.  (For  details  on these and other  hotels  and
resorts under construction or advanced stages of development,  see "Four Seasons
Portfolio -- Properties under Construction or Development".)

RESIDENCE CLUBS AND OTHER BRANDED RESIDENTIAL PROPERTIES

As part of our program to capitalize on the value of the Four Seasons brand,  we
have  embarked on  opportunities  such as additional  Residence  Clubs and other
branded and serviced residential projects. Typically, these residential projects
will be integrated with our managed hotels and resorts.  (See  discussion  under
"Management   Operations  --  Residence  Clubs  and  Other  Branded  Residential
Properties".)  During  2004,  interests  were  available  for  initial  sale  in
Residence  Clubs or other branded and serviced  residential  projects in Aviara,
California;  Scottsdale, Arizona; Punta Mita, Mexico; San Francisco, California;
Nevis, West Indies;  Jackson Hole,  Wyoming;  Miami,  Florida;  Great Exuma, the
Bahamas;  and  Whistler,   British  Columbia.  We  anticipate  pursuing  similar
initiatives in a number of our future resort and urban developments.

CAPITAL DEPLOYMENT

Consistent with our business strategy, we do not generally require large amounts
of  capital  to  maintain  existing  management   agreements  or  our  ownership
positions,  which are typically  minority  interests.  As a result,  in 2004, we
utilized a majority of the operating cash flow to make  investments that allowed
us to obtain new or enhanced management  agreements.  As at December 31, 2004 we
had  $272.5  million  in cash  and cash  equivalents  and  additional  financing
available  under  our bank  credit  facilities.  (For  details  of those  credit
facilities see "Liquidity and Capital Resources" in Management's  Discussion and
Analysis.)

                              COMPETITIVE STRENGTHS

The hotel  industry  is highly  competitive.  We  believe  that our  competitive
position is strengthened by the barriers to entry into the luxury segment of the
hotel  management  business.  Those  barriers  to  entry  include  the  time and
significant  capital  resources  required  to  establish a well  recognized  and
respected  luxury  brand  name and to obtain  management  contracts  for  luxury
properties  in  strategic  markets  worldwide.  We  also  believe  that  we have
developed a unique service culture, depth of management expertise,  and multiple
capital resources over our more than 41-year history that would be difficult for
others to replicate.

STRONG BRAND RECOGNITION

Our properties are widely recognized for the exceptional  quality of their guest
facilities, service and atmosphere, and have been named more frequently than any
other  competitor  among the  world's  best


                                      - 7 -

<PAGE>

hotels   and   travel   experiences   by   INSTITUTIONAL  INVESTOR,  CONDE  NAST
TRAVELER,  ZAGAT and others.  We believe that our brand name recognition  cannot
easily be replicated by others, as it has been created over 40 years through the
exceptional   experiences  provided  by  Four  Seasons  global  list  of  unique
properties of the highest quality.

SUPERIOR HOTEL OPERATING RESULTS

We generally  achieve RevPAR and operating profit margins for hotels and resorts
that we manage that are above the average  achieved in the luxury segment of the
lodging  industry.  We believe that we attract  owners and  developers of luxury
hotels and resorts worldwide as a result of the superior  financial  performance
of the hotels and resorts that we manage.

STRATEGIC RELATIONSHIPS

Strategic relationships are an important source of financing for the development
opportunities required to expand our management operations.  We have established
relationships with numerous institutional and private equity sources that invest
in and  develop  luxury  properties.  Several  of the  existing  owners  have an
ownership interest in more than one Four Seasons hotel or resort, including five
owners that have interests in four or more properties.

In 1994, a company  controlled by His Royal Highness  Prince  Alwaleed Bin Talal
Bin Abdulaziz Al Saud purchased a significant  minority position in Four Seasons
Hotels  Inc.  Prince  Alwaleed or  companies  controlled  by him  (collectively,
"Kingdom"),  own a majority interest in Four Seasons Hotel London,  Four Seasons
Hotel George V Paris and Four Seasons  Hotel  Riyadh,  with Four Seasons  having
made advances in respect of the former two hotels.  Kingdom also holds  minority
interests in the Four Seasons  Resort  Aviara,  California,  Four Seasons  Hotel
Amman,  Four Seasons Resort Sharm el Sheikh and Four Seasons Hotel Cairo at Nile
Plaza and has  invested,  or is  expected  to make  investments,  in a number of
additional  properties at various stages of development that we expect to manage
under the Four Seasons  brand name,  such as the Four Seasons  hotels or resorts
being  developed  in  Alexandria,  Damascus,  Beirut  and  Geneva.  All  of  our
transactions with Kingdom are conducted at arm's length.

MANAGEMENT FOCUS

We are  principally  a global hotel and resort  management  company.  Management
agreements  for the hotels and resorts that we manage  generally are  long-term,
having an average remaining term of approximately 52 years,  including extension
periods  available at our option.  The average term of the management  contracts
for the  five  new  properties  expected  to open in 2005 or early in 2006 is 53
years.  (For a chart  summarizing,  among other  things,  the hotels and resorts
under  construction  or development by Four Seasons that are expected to open in
2005 or early 2006 see "Four Seasons Portfolio -- Properties under  Construction
or Development".)

GLOBAL PRESENCE

We manage a global portfolio of 64 luxury hotels and resorts and three Residence
Clubs in 28 countries in North America, the Caribbean,  Europe, Asia, Australia,
the Middle East and South America. 26 additional properties to be operated under
the Four Seasons name are under  construction  or  development in a further nine
countries  around  the  world.  Nine of these new  properties  are to  include a
Residence Club or other residential  component.  Hotels that we currently manage
are located in major international  financial centres, such as London, New York,
Paris, Chicago,  Washington,  Los Angeles,  Tokyo, Milan,  Shanghai,  Singapore,
Toronto and Sydney, as well as in emerging international markets, such as Dublin
and Mexico City. We also manage  resorts in  world-class  destinations,  such as
Bali,  California,  Costa Rica,  Hawaii,  Mexico,  Nevis and  Whistler  and have
Residence  Clubs in active  sales  and  operation  in  California,  Arizona  and
Wyoming.  We  anticipate  that we will  continue  to expand in urban


                                      - 8 -

<PAGE>

and  resort  destinations  where  consumer  demand  warrants  a luxury property.
In 2004, approximately 53%, 12%, 17%, 4% and 14% of our management revenues were
derived  from hotels and  resorts in the United  States,  Asia/Pacific,  Europe,
Middle East,  and Other  Americas/Caribbean,  respectively.  We maintain a fully
integrated   global   reservation   and  sales  office   system  that   provides
international sales coverage for our properties.

STRONG MANAGEMENT TEAM

Our corporate  executive  management  team consists of nine  individuals who are
responsible  for our  global  strategic  direction  and who have an  average  of
approximately  23 years of  experience  with us.  This team is  supported  by 26
corporate Vice Presidents,  who are responsible for various aspects of our daily
operations, as well as by 67 General Managers and Regional Vice Presidents,  who
together have an average of  approximately  15.4 years of experience with us. We
have a fundamental  strategy of developing  our senior  management  team, to the
extent  possible,  from  within in order to ensure  consistency  of our  service
culture and work ethic.

                             FOUR SEASONS PORTFOLIO

Our  properties  are comprised of luxury hotels,  resorts,  Residence  Clubs and
other  serviced and branded  residential  projects  whose target  customers  are
principally  business  travelers,  corporate and incentive groups and discerning
leisure  travelers.  Our urban hotels  generally  are  centrally  located in the
commercial  and  financial  districts  of the  world's  leading  cities in North
America,  South America,  Asia,  Europe and the Middle East. Our luxury resorts,
Residence Clubs and other serviced and branded residential  projects are located
in world-class  leisure  destinations  and provide  extensive  recreational  and
meeting facilities to attract upscale leisure travelers and groups.

DESCRIPTION OF HOTELS, RESORTS AND RESIDENCE CLUBS

The following  table  provides an overview of the  properties  that we currently
manage:

-------------------------------------------------------------------------
                                        APPROXIMATE    APPROXIMATE
                                         NUMBER OF        EQUITY
                                        ROOMS/UNITS     INTEREST(1)
-------------------------------------------------------------------------
UNITED STATES
-------------------------------------------------------------------------
Four Seasons Hotel Atlanta, GEORGIA         244             --
-------------------------------------------------------------------------
Four Seasons Hotel Austin, TEXAS            291             --
-------------------------------------------------------------------------
Four Seasons Resort Aviara,                 329            7.3%(2)
CALIFORNIA
-------------------------------------------------------------------------
Four Seasons Residence Club Aviara,         120            7.3%(2)
CALIFORNIA
-------------------------------------------------------------------------
The Regent Beverly Wilshire (Beverly        395             --
Hills), CALIFORNIA
-------------------------------------------------------------------------
Four Seasons Biltmore Resort (Santa         213             --
Barbara), CALIFORNIA
-------------------------------------------------------------------------
Four Seasons Hotel Boston,                  272             --
MASSACHUSETTS(3)
-------------------------------------------------------------------------
Four Seasons Hotel Chicago, ILLINOIS        343             --
-------------------------------------------------------------------------
The Ritz-Carlton Hotel Chicago,             435             --
ILLINOIS
-------------------------------------------------------------------------
Four Seasons Hotel Houston, TEXAS(3)        404             --
-------------------------------------------------------------------------
Four Seasons Resort Hualalai at             243             --
Historic Ka'upulehu, HAWAII
-------------------------------------------------------------------------
Four Seasons Resort Jackson Hole,           146             10%(2),(5)
WYOMING(3)
-------------------------------------------------------------------------
Four Seasons Residence Club Jackson          16(4)          10%(2)
Hole, WYOMING
-------------------------------------------------------------------------
Four Seasons Resort and Club Dallas         357             --
at Las Colinas, TEXAS
-------------------------------------------------------------------------
Four Seasons Hotel Las Vegas, NEVADA        424             --
-------------------------------------------------------------------------


                                      - 9 -

<PAGE>

-------------------------------------------------------------------------
                                        APPROXIMATE    APPROXIMATE
                                         NUMBER OF        EQUITY
                                        ROOMS/UNITS     INTEREST(1)
-------------------------------------------------------------------------
Four Seasons Hotel Los Angeles,             285             --(5)
CALIFORNIA
-------------------------------------------------------------------------
Four Seasons Resort Maui at Wailea,         377             --
HAWAII
-------------------------------------------------------------------------
Four Seasons Hotel Miami, FLORIDA           221            4.7%(2)
-------------------------------------------------------------------------
Four Seasons Hotel Newport Beach,           295             --
CALIFORNIA
-------------------------------------------------------------------------
Four Seasons Hotel New York, NEW YORK       362             --
-------------------------------------------------------------------------
Four Seasons Resort Palm Beach,             210             --
FLORIDA
-------------------------------------------------------------------------
Four Seasons Hotel Philadelphia,            364             --
PENNSYLVANIA
-------------------------------------------------------------------------
The Pierre in New York, NEW YORK            201(6)         100%(7)
-------------------------------------------------------------------------
Four Seasons Hotel San Francisco,           277             --
CALIFORNIA(3)
-------------------------------------------------------------------------
Four Seasons Resort Scottsdale at           210            3.9%(2),(5),(8)
Troon North, ARIZONA
-------------------------------------------------------------------------
Four Seasons Residence Club                  44           14.2%(2),(5)
Scottsdale at Troon North, ARIZONA
-------------------------------------------------------------------------
Four Seasons Hotel Washington,              211             --
DISTRICT OF COLUMBIA
-------------------------------------------------------------------------
OTHER AMERICAS/CARIBBEAN
-------------------------------------------------------------------------
Four Seasons Hotel Buenos Aires,            165             --
ARGENTINA
-------------------------------------------------------------------------
Four Seasons Resort Carmelo, URUGUAY         44             --
-------------------------------------------------------------------------
Four Seasons Resort Costa Rica at           165           11.4%(7)
Peninsula Papagayo, COSTA RICA(3)
-------------------------------------------------------------------------
Four Seasons Resort Great Exuma at          183             --
Emerald Bay, THE BAHAMAS(3)
-------------------------------------------------------------------------
Four Seasons Hotel Mexico City,             240             --
MEXICO
-------------------------------------------------------------------------
Four Seasons Resort Nevis, WEST             196             --
INDIES(3)
-------------------------------------------------------------------------
Four Seasons Resort Punta Mita,             140             --
MEXICO(3)
-------------------------------------------------------------------------
Four Seasons Hotel Toronto, ONTARIO,        380             --
CANADA
-------------------------------------------------------------------------
Four Seasons Hotel Vancouver, BRITISH       376            100%(7)
COLUMBIA, CANADA
-------------------------------------------------------------------------
Four Seasons Resort Whistler, BRITISH       273             --(5)
COLUMBIA, CANADA
-------------------------------------------------------------------------
ASIA/PACIFIC
-------------------------------------------------------------------------
Four Seasons Resort Bali at Jimbaran        147             --
Bay, INDONESIA
-------------------------------------------------------------------------
Four Seasons Resort Bali at Sayan,           60             --
INDONESIA(3)
-------------------------------------------------------------------------
Four Seasons Hotel Bangkok, THAILAND        340             --
-------------------------------------------------------------------------
Four Seasons Resort Chiang Mai,              80             --
THAILAND
-------------------------------------------------------------------------
Four Seasons Hotel Jakarta, INDONESIA(3)    365              2%(2),(10)
-------------------------------------------------------------------------
The Regent Kuala Lumpur, MALAYSIA           468             --
-------------------------------------------------------------------------
Four Seasons Resort Maldives at Kuda        106             --
Huraa, MALDIVES
-------------------------------------------------------------------------
Four Seasons Hotel Shanghai, PEOPLE'S       439           21.2%(2),(5),(9)
REPUBLIC OF CHINA
-------------------------------------------------------------------------
Four Seasons Hotel Singapore,               254             --
SINGAPORE
-------------------------------------------------------------------------
The Regent Singapore, SINGAPORE             441             --
-------------------------------------------------------------------------
Four Seasons Hotel Sydney, AUSTRALIA        531           15.2%(7)
-------------------------------------------------------------------------
Grand Formosa Regent Taipei, TAIWAN         538             --
-------------------------------------------------------------------------
Four Seasons Hotel Tokyo at                 283             --
Chinzan-so, JAPAN
-------------------------------------------------------------------------
Four Seasons Hotel Tokyo at                  57             --
Marunouchi, JAPAN
-------------------------------------------------------------------------
MIDDLE EAST
-------------------------------------------------------------------------
Four Seasons Hotel Amman, JORDAN            193            1.6%(2)
-------------------------------------------------------------------------
Four Seasons Hotel Cairo at The First       269             --
Residence, EGYPT(3)
-------------------------------------------------------------------------
Four Seasons Hotel Cairo at Nile            365            7.8%(2)
Plaza, EGYPT(3)
-------------------------------------------------------------------------
Four Seasons Hotel Riyadh, SAUDI            249             --
ARABIA
-------------------------------------------------------------------------


                                     - 10 -

<PAGE>

-------------------------------------------------------------------------
                                        APPROXIMATE    APPROXIMATE
                                         NUMBER OF        EQUITY
                                        ROOMS/UNITS     INTEREST(1)
-------------------------------------------------------------------------
Four Seasons Resort Sharm el Sheikh,        136             --
EGYPT(3)
-------------------------------------------------------------------------
EUROPE
-------------------------------------------------------------------------
Four Seasons Hotel Gresham Palace           179           18.3%(2)
Budapest, HUNGARY
-------------------------------------------------------------------------
Four Seasons Hotel Dublin, IRELAND          259             --
-------------------------------------------------------------------------
Four Seasons Hotel Hampshire, ENGLAND       133             --(5)
-------------------------------------------------------------------------
Four Seasons Hotel Istanbul, TURKEY          65             --(11)
-------------------------------------------------------------------------
Four Seasons Hotel The Ritz Lisbon,         282             --
PORTUGAL
-------------------------------------------------------------------------
Four Seasons Hotel Canary Wharf,            142             --(12)
ENGLAND
-------------------------------------------------------------------------
Four Seasons Hotel London, ENGLAND          220           12.5%(5),(7),(13)
-------------------------------------------------------------------------
Four Seasons Hotel Milan, ITALY             118             --
-------------------------------------------------------------------------
Four Seasons Hotel George V Paris,          245             --
FRANCE
-------------------------------------------------------------------------
Four Seasons Hotel Prague, CZECH            161             --(5)
REPUBLIC
-------------------------------------------------------------------------
Four Seasons Resort Provence at Terre       115             --
Blanche, FRANCE(3)
-------------------------------------------------------------------------

1     In the ordinary course,  we make investments in, or advances in respect of
      or to owners of,  properties  to obtain new  management  agreements  or to
      enhance  existing  management  agreements  where we  believe  the  overall
      economic return to us will justify the investment or advance. We generally
      seek to limit our total long-term  capital exposure to no more than 20% of
      the  total  equity  required  for a  property.  For a  description  of our
      investments in, or advances made in respect of or to owners, of properties
      and other  commitments  in respect of existing  properties,  including the
      equity  investments  listed in this chart,  see "Balance  Sheet Review and
      Analysis" and "Liquidity and Capital Resources".

2     Freehold interest.

3     This project includes, or is expected to include, a Four Seasons Residence
      Club or a Four Seasons branded residential component.

4     Four  Seasons  Residence  Club  Jackson  Hole,  Wyoming may have up to 40
      units at full build out.

5     In addition to providing  management services to this property,  we have a
      guarantee  or  other  off-balance  sheet  commitment  in  respect  of this
      property.   See   "Off-Balance   Sheet   Arrangements  --  Guarantees  and
      Commitments".

6     Includes approximately 30 cooperative suites leased from individual owners
      and operated as hotel rooms.

7     Leasehold interest.

8     We have a preferred  profits  interest  derived from  previously  existing
      subordinated  loans to the resort or  property  of  approximately  US$17.4
      million in  aggregate  plus a loan in the  amount of US$6.0  million to an
      entity that owns approximately 85% of the entity that owns the hotel.

9     We anticipate that we will reduce our equity  interest  through a sale to
      a third party.

10    The  Regent   Jakarta  was  re-branded  as  Four  Seasons  Hotel  Jakarta
      effective July 14, 2004.

11    Subject to  satisfaction  of  certain  conditions,  we may  acquire an 18%
      leasehold interest in conjunction with a proposed expansion and renovation
      of Four Seasons Hotel Istanbul.

12    We have made a loan of (pound)3  million to the owner of the Four  Seasons
      Hotel Canary Wharf,  which is convertible  into an equity  interest in the
      hotel on the occurrence of certain events.


                                     - 11 -
<PAGE>

13    Four  Seasons  Hotels  Limited  ("FSHL")  is the  tenant  of the  land and
      premises  constituting Four Seasons Hotel London.  FSHL has entered into a
      sublease of the hotel with the entity on whose behalf we manage the hotel.
      The annual rent  payable by FSHL under the lease is the same as the annual
      rent  that  is  payable  by  the  sub-tenant  pursuant  to  the  sublease.
      Indirectly, we now hold a 12.5% ownership interest in the sub-tenant.


                                     - 12 -

<PAGE>

PROPERTIES UNDER CONSTRUCTION OR DEVELOPMENT

We currently have 26 properties under construction or development that are to be
operated  under the Four Seasons  name.  We expect nine of those  properties  to
include a Residence Club or other residential  branded component.  The following
table provides an overview of these properties:

--------------------------------------------------------------------------------
                                                                   CAPITAL
                                                                  COMMITMENT
                                                                NOT YET FUNDED
                                               TOTAL CAPITAL    AS AT MARCH 14,
                                 APPROXIMATE     COMMITMENT         2005
HOTEL/RESORT/RESIDENCE CLUB       NUMBER OF        (IN              (IN
    AND LOCATION(1),(2)          ROOMS/UNITS     MILLIONS)        MILLIONS)
--------------------------------------------------------------------------------
SCHEDULED 2005/2006 OPENINGS
--------------------------------------------------------------------------------
Four Seasons Hotel  Alexandria,      125            --               --
EGYPT(3)
--------------------------------------------------------------------------------
Four  Seasons  Hotel  Damascus,      305          US$5               --
SYRIA
--------------------------------------------------------------------------------
Four Seasons Hotel Doha, QATAR(3)    230          US$4(4)          US$4
--------------------------------------------------------------------------------
Four  Seasons  Hotel  Florence,      120      (euro)10(4)      (euro)10
ITALY
--------------------------------------------------------------------------------
Four  Seasons   Hotel   Geneva,      100         US$19          US$15.4
SWITZERLAND
--------------------------------------------------------------------------------
Four  Seasons  Hotel Hong Kong,      395            --               --
PEOPLE'S REPUBLIC OF CHINA(3)
--------------------------------------------------------------------------------
Four  Seasons  Resort  Lanai at      100            --               --
Koele, HAWAII, USA
--------------------------------------------------------------------------------
Four  Seasons  Resort  Lanai at      250            --               --
Manele Bay, HAWAII, USA
--------------------------------------------------------------------------------
Four Seasons  Resort  Langkawi,       90            --               --
MALAYSIA
--------------------------------------------------------------------------------
Four  Seasons  Resort  Maldives      115          US$4             US$4
at Landaa Giraavaru, MALDIVES
--------------------------------------------------------------------------------
Four  Seasons   Hotel   Mumbai,      235            --               --
INDIA
--------------------------------------------------------------------------------
Four  Seasons   Residence  Club       35       US$36.8          US$35.7
Punta Mita, MEXICO(5)
--------------------------------------------------------------------------------
Four  Seasons   Hotel   Silicon      200        US$6.7           US$0.8
Valley  at  East   Palo   Alto,
CALIFORNIA, USA
--------------------------------------------------------------------------------
Four Seasons Private Residences       35            --               --
Whistler, BRITISH COLUMBIA,
CANADA(6)
--------------------------------------------------------------------------------
BEYOND 2006
--------------------------------------------------------------------------------
Four Seasons  Hotel  Baltimore,      200          US$5             US$5
MARYLAND, USA(3)
--------------------------------------------------------------------------------
Four  Seasons  Hotel   Beijing,      325          US$1             US$1
PEOPLE'S REPUBLIC OF CHINA
--------------------------------------------------------------------------------
Four  Seasons   Hotel   Beirut,      235          US$5             US$5
LEBANON
--------------------------------------------------------------------------------
Four Seasons  Resort Bora Bora,      105        US$6.5(4)        US$6.5
FRENCH POLYNESIA
--------------------------------------------------------------------------------
Four   Seasons   Hotel   Dubai,      250            --               --
UNITED ARAB EMIRATES(3)
--------------------------------------------------------------------------------
Four Seasons Hotel  Istanbul at      170         US$12(7)       US$10.5
the Bosphorus, TURKEY
--------------------------------------------------------------------------------
Four   Seasons   Hotel   Kuwait      225            --               --
City, KUWAIT
--------------------------------------------------------------------------------
Four  Seasons   Hotel   Moscow,      210         US$10            US$10
RUSSIA(3)
--------------------------------------------------------------------------------
Four   Seasons   Hotel   Moscow       80          US$5             US$5
Kamenny Island, RUSSIA(3)
--------------------------------------------------------------------------------
Four  Seasons   Resort   Puerto      250         US$10            US$10
Rico, PUERTO RICO(3)
--------------------------------------------------------------------------------


                                     - 13 -

<PAGE>

--------------------------------------------------------------------------------
                                                                   CAPITAL
                                                                  COMMITMENT
                                                                NOT YET FUNDED
                                               TOTAL CAPITAL    AS AT MARCH 14,
                                 APPROXIMATE     COMMITMENT         2005
HOTEL/RESORT/RESIDENCE CLUB       NUMBER OF        (IN              (IN
     AND LOCATION(1),(2)         ROOMS/UNITS     MILLIONS)        MILLIONS)
--------------------------------------------------------------------------------
Four  Seasons  Hotel   Seattle,      150           US$5             US$5
WASHINGTON, USA(3)
--------------------------------------------------------------------------------
Four   Seasons   Resort   Vail,      120           US$6             US$6
COLORADO, USA
--------------------------------------------------------------------------------

1     Information  concerning  hotels,  resorts  and  Residence  Clubs  or other
      residential  branded components under construction or under development is
      based upon  agreements  and letters of intent and may change  prior to the
      completion  of the  project.  We have  estimated  the  dates of  scheduled
      openings based upon information provided by the various developers.  There
      can be no assurance that the dates of scheduled openings will be achieved,
      that estimated capital  commitments will not change or that these projects
      will be completed.  In  particular,  where a property is scheduled to open
      near the end of a year  there is a  greater  possibility  that the year of
      opening could be changed.

2     We have made an investment in Orlando, Florida, which we expect to include
      a Four Seasons  Residence Club and/or a Four Seasons  branded  residential
      component.  The financing for this project has not yet been  completed and
      therefore a scheduled opening date cannot be established at this time.

3     We expect this project to include a Four Seasons  Residence  Club and/or a
      Four Seasons branded residential component.

4     All or a portion of the capital  commitment is to be provided by way of an
      operating  deficit  loan that may or may not be required to be funded.  In
      the case of Four Seasons Hotel Doha,  Four Seasons Hotel Florence and Four
      Seasons  Resort Bora Bora,  we do not expect the  operating  deficit loans
      that we are to provide to exceed US$4 million,  (euro)10  million and US$4
      million, respectively, if they are funded.

5     Four  Seasons   Residence  Club  Punta  Mita  remains  under  development
      adjacent to Four Seasons Resort Punta Mita.

6     Four Seasons Private Residences  Whistler are under development  adjacent
      to Four Seasons Resort Whistler.

7     This capital  commitment  relates to our purchase of an equity interest in
      Four Seasons Hotel  Istanbul at the Bosphorus as well as the existing Four
      Seasons Hotel Istanbul.


                                     - 14 -

<PAGE>

                          SUMMARY HOTEL OPERATING DATA

The following table sets forth certain summary operating data in the years shown
for hotels and resorts that we manage.

--------------------------------------------------------------------------------
(Unaudited)                                  2004         2003         2002
--------------------------------------------------------------------------------
ALL MANAGED HOTELS
--------------------------------------------------------------------------------
   Worldwide
--------------------------------------------------------------------------------
     No. of properties                       63(1)          60           57
--------------------------------------------------------------------------------
     No. of rooms                        16,378(1)      15,726       15,433
--------------------------------------------------------------------------------
   United States
--------------------------------------------------------------------------------
     No. of properties                       24             24           23
--------------------------------------------------------------------------------
     No. of rooms                         7,109          7,145        7,248
--------------------------------------------------------------------------------
   Other Americas/Caribbean
--------------------------------------------------------------------------------
     No. of properties                       10              9            8
--------------------------------------------------------------------------------
     No. of rooms                         2,162          1,929        1,762
--------------------------------------------------------------------------------
   Asia/Pacific
--------------------------------------------------------------------------------
     No. of properties                       14             14           14
--------------------------------------------------------------------------------
     No. of rooms                         4,109          4,109        4,119
--------------------------------------------------------------------------------
   Europe
--------------------------------------------------------------------------------
     No. of properties                       10(1)           9            9
--------------------------------------------------------------------------------
     No. of rooms                         1,786(1)       1,696        1,698
--------------------------------------------------------------------------------
   Middle East
--------------------------------------------------------------------------------
     No. of properties                        5              4            3
--------------------------------------------------------------------------------
     No. of rooms                         1,212            847          606
--------------------------------------------------------------------------------
MANAGED   HOTELS   (EXCLUDING   RECENTLY
OPENED PROPERTIES)(2)
--------------------------------------------------------------------------------
   Worldwide
--------------------------------------------------------------------------------
     No. of properties                       51             50           46
--------------------------------------------------------------------------------
     No. of rooms                        13,559         13,423       12,834
--------------------------------------------------------------------------------
     Occupancy(3)                           66.8%         61.9%        64.6%
--------------------------------------------------------------------------------
     ADR(4)                               US$307        US$299       US$289
--------------------------------------------------------------------------------
     RevPAR(5)                            US$205        US$185       US$187
--------------------------------------------------------------------------------
     Gross operating margin(6)              29.1%         26.7%        30.0%
--------------------------------------------------------------------------------
   United States
--------------------------------------------------------------------------------
     No. of properties                       19             22           22
--------------------------------------------------------------------------------
     No. of rooms                         6,108          6,800        6,971
--------------------------------------------------------------------------------
     Occupancy(3)                           70.5%         67.6%        66.7%
--------------------------------------------------------------------------------
     ADR(4)                               US$346        US$331       US$321
--------------------------------------------------------------------------------
     RevPAR(5)                            US$244        US$224       US$214
--------------------------------------------------------------------------------
     Gross operating margin(6)              25.6%         24.9%        28.0%
--------------------------------------------------------------------------------
   Other Americas/Caribbean
--------------------------------------------------------------------------------
     No. of properties                        7              7            5
--------------------------------------------------------------------------------
     No. of rooms                         1,541          1,534        1,341
--------------------------------------------------------------------------------
     Occupancy(3)                           64.2%         56.1%        63.8%
--------------------------------------------------------------------------------
     ADR(4)                               US$280        US$271       US$261
--------------------------------------------------------------------------------
     RevPAR(5)                            US$180        US$152       US$167
--------------------------------------------------------------------------------
     Gross operating margin(6)              29.8%         26.7%        30.9%
--------------------------------------------------------------------------------
   Asia/Pacific
--------------------------------------------------------------------------------
     No. of properties                       13             11           10
--------------------------------------------------------------------------------
     No. of rooms                         3,571          3,149        2,715
--------------------------------------------------------------------------------
     Occupancy(3)                           63.4%         56.6%        63.9%
--------------------------------------------------------------------------------
     ADR(4)                               US$183        US$165       US$164
--------------------------------------------------------------------------------
     RevPAR(5)                            US$116         US$93       US$105
--------------------------------------------------------------------------------
     Gross operating margin(6)              32.3%         29.5%        33.7%
--------------------------------------------------------------------------------


                                     - 15 -

<PAGE>

--------------------------------------------------------------------------------
(Unaudited)                                  2004         2003         2002
--------------------------------------------------------------------------------
   Europe
--------------------------------------------------------------------------------
     No. of properties                        8              8            8
--------------------------------------------------------------------------------
     No. of rooms                         1,492          1,535        1,536
--------------------------------------------------------------------------------
     Occupancy(3)                          63.5%          59.5%        59.9%
--------------------------------------------------------------------------------
     ADR(4)                              US$529         US$459       US$376
--------------------------------------------------------------------------------
     RevPAR(5)                           US$336         US$285       US$243
--------------------------------------------------------------------------------
     Gross operating margin(6)             34.7%          31.2%        33.6%
--------------------------------------------------------------------------------
   Middle East
--------------------------------------------------------------------------------
     No. of properties                        4              2            1
--------------------------------------------------------------------------------
     No. of rooms                           847            405          271
--------------------------------------------------------------------------------
     Occupancy(3)                          65.6%          47.7%        50.0%
--------------------------------------------------------------------------------
     ADR(4)                              US$182         US$159       US$204
--------------------------------------------------------------------------------
     RevPAR(5)                           US$119          US$79       US$102
--------------------------------------------------------------------------------
     Gross operating margin(6)             37.9%          33.6%       48.8%
--------------------------------------------------------------------------------

1     Since  December 31, 2004,  we commenced  management  of Four Seasons Hotel
      Hampshire,  which has 133 rooms.  The  property is not  reflected  in this
      table.

2     Includes  hotels  and  resorts  that were  fully  open and that we managed
      throughout  a  particular  year and during  the last  quarter of the prior
      year.  This  data is used  when  information  for more  than two  years is
      provided.  However, if a "Managed Hotel" has undergone or is undergoing an
      extensive  renovation program during the aforementioned  period, it ceases
      to be included as a "Managed Hotel" for that particular year.

3     Occupancy  percentage  is  defined as the total  number of rooms  occupied
      divided by the total number of rooms available.

4     ADR is defined as average daily room rate per room occupied.

5     RevPAR is defined as average room revenue per available room.  RevPAR is a
      commonly used indicator of market  performance  for hotels and resorts and
      represents the  combination of the average daily room rate and the average
      occupancy  rate achieved  during the period.  RevPAR does not include food
      and beverage or other ancillary  revenues  generated by a hotel or resort.
      RevPAR is the most  commonly  used  measure  in the  lodging  industry  to
      measure the period-over-period performance of comparable properties.

6     Gross operating  margin  represents gross operating profit as a percentage
      of gross operating revenue.


                                     - 16 -

<PAGE>

                                 OPERATING RISKS

Our  business  is  subject  to many  risks and  uncertainties,  including  those
discussed below.

GEOPOLITICAL, ECONOMIC AND LODGING INDUSTRY CONDITIONS

We focus  exclusively  on the luxury segment of the lodging  industry,  which is
subject to operating risks inherent in the industry.  These risks include, among
other things:

     o    changes in general, local and industry-specific economic and financial
          conditions, such as the airline industry,

     o    periodic overbuilding in the industry or a specific market,

     o    varying  levels of demand for rooms and  related  services  (including
          food and beverage and function space),

     o    competition from other properties,

     o    changes in travel patterns,

     o    the recurring need for  renovation,  refurbishment  and improvement of
          hotel and resort properties,

     o    changes in wages,  benefits,  prices,  construction  and  maintenance,
          insurance  and  operating  costs that may  result  from  inflation  or
          otherwise,

     o    government regulations,

     o    changes in taxes and interest rates,

     o    currency fluctuations,

     o    the  availability  and cost of  financing  for  operating  or  capital
          requirements,

     o    natural disasters,

     o    extreme weather conditions,

     o    labour disputes,

     o    infectious diseases, and

     o    war,  civil unrest,  terrorism,  international  conflict and political
          instability.

We operate and own luxury hotels,  resorts and serviced and branded  residential
projects  in many areas of the world and our  revenues  are  dependent  upon the
results of the individual properties.  The conditions listed above can have, and
have  from  time to time had,  a  significant  adverse  impact  upon  individual
properties or particular  regions. A period of economic recession or downturn in
any  of the  world's  primary  outbound  travel  markets  could  materially  and
adversely affect, and have from time to time materially and adversely  affected,
our business,  results of  operations  and  financial  condition,  including fee
revenue and ownership earnings. An economic downturn generally affects ownership
results to a  significantly  greater degree than  management  results due to the
high fixed costs associated with hotel ownership.

COMPETITION

The  luxury  segment  of the hotel and  resort  industry  is  subject to intense
competition,  both  for  guests  and  for  the  acquisition  of  new  management
agreements.  Competition  for guests  arises  primarily  from other


                                     - 17 -

<PAGE>

luxury hotel  chains,  individual  luxury  hotels  and  resorts  and  a  limited
number of luxury properties operated by larger hotel chains. That competition is
primarily based on, among other things, brand name recognition,  location,  room
rates and quality of service and  accommodations.  Demographic,  geographic  and
other  changes in specific  market  conditions  could  materially  and adversely
affect the  convenience  or  desirability  of the  locales  in which  hotels and
resorts that we manage are located.

We compete for management  opportunities with other hotel operators.  We believe
that our ability to obtain management agreements is based primarily on the value
and quality of our management services,  brand name recognition and the economic
advantages to the hotel owner of retaining our management services and using our
brand  name.  We  also  believe  that  an  owner's  assessment  of the  economic
advantages of retaining our management  services and using our brand name is, in
part,  a function  of the  success of the hotels  and  resorts  currently  under
management  by us.  Competitive  factors also include  relationships  with hotel
owners and investors,  marketing  support,  reservation  system capacity and the
ability  to  make  investments  that  may  be  necessary  to  obtain  management
agreements.  Our failure to compete successfully for expansion  opportunities or
to attract and maintain relationships with current hotel owners could materially
and  adversely  affect  our  business,   results  of  operations  and  financial
condition.

DEPENDENCE ON MANAGEMENT AGREEMENTS

Management  agreements  expire  in the  ordinary  course,  and  may  in  certain
circumstances  be renegotiated and be subject to termination upon the occurrence
of specified  events.  Failure to obtain new  management  agreements or maintain
existing  management  agreements  could  materially  and  adversely  affect  our
business,  results of operations and financial  condition.  We manage hotels and
resorts for various  owners subject to the terms of each  property's  management
agreements.  Those agreements  generally can be terminated by the non-defaulting
party upon default in payment or unremedied  failure to comply with the terms of
the agreements  unless,  in most cases,  such default or unremedied  failure was
caused by typical FORCE MAJEURE  events.  Most of the management  agreements are
subject to performance  tests that, if not met, could allow the agreements to be
terminated by the owner prior to the expiration of their  respective  terms. The
failure to maintain  the  standards  specified  in the  agreement or to meet the
other terms and conditions of an agreement,  including a performance test, could
result in the loss or cancellation of a management agreement. Typically, but not
in all cases,  we have  certain  rights to cure a default to avoid  termination.
Substantially  all of the management  agreements  include  typical FORCE MAJEURE
events,  which,  if they were to occur  would  prevent  the  termination  of the
management agreements. Some management agreements also can be terminated subject
to a payment to us if the  property is sold by the owner to a new owner who does
not wish to retain the existing agreement.

In the event of bankruptcy  involving a property and  foreclosure,  a management
agreement  may be  terminated  in most  jurisdictions,  unless  the  lender  has
executed  a  non-disturbance  agreement  that is  enforceable  under  applicable
bankruptcy laws. We generally have  non-disturbance  agreements with the lenders
to  owners  of hotels  and  resorts  that we  manage.  Where no  non-disturbance
agreement is in place or where it is not enforceable under applicable bankruptcy
laws,  the risk of loss of a  management  agreement  increases  where  debt that
cannot be serviced adequately is incurred by the owner at the property level. In
some  jurisdictions,  particularly in the United States,  management  agreements
have  been  construed  by  courts  to  create  an  agency  relationship  that is
terminable by the owner,  notwithstanding  any  provision of the agreement  that
purports to make the agreement not terminable under such circumstances.  In such
circumstances, we would generally have an unsecured claim for breach of contract
against the owner of the hotel or its trustee in bankruptcy.

Management  agreements for hotels and resorts we manage currently have remaining
terms (including  extension periods at our election) averaging  approximately 52
years. Renewal of management  agreements at the end of their term is the subject
of  negotiation  between us and the relevant  owners.


                                     - 18 -

<PAGE>

There  can  be  no  assurance  that any  particular  management   agreement   or
agreements  will be renewed or with respect to the terms and  conditions  of any
renewal.

DEPENDENCE ON PROPERTY OWNERS

As a result of our  strategic  decision  to focus on  management  as  opposed to
ownership of hotel and resort properties, our growth opportunities are dependent
in part on our ability to establish and maintain satisfactory  relationships and
enhance those relationships with existing and new property owners.  Those growth
opportunities  are also  dependent on access to capital by these  investors.  In
2004, no owner had interests in any combination of hotels,  resorts and serviced
and branded  residential  properties managed by Four Seasons that represented in
excess of 10% of our total  consolidated  revenues.  A failure by us to maintain
satisfactory  relationships  with any owner or owners of a significant number of
properties  could have a material  adverse  effect on our  business,  results of
operations and financial condition.

RISK ASSOCIATED WITH EXPANSION, GROWTH AND NEW CONSTRUCTION

An element of our  business  strategy  is to  increase  the number of hotels and
resorts under management.  That expansion is dependent upon a number of factors,
including the identification of appropriate management opportunities,  competing
successfully  for the  management  agreements  relating to those  opportunities,
availability  of  financing  for  new  developments  and  timely  completion  of
construction  of new  hotels  and  resorts  (or the  refurbishment  of  existing
properties) that are, or are to be, managed by us.

From time to time,  the hotel  industry  has  experienced  periods  during which
financial  institutions  generally have been reluctant to provide  financing for
the construction of real estate properties,  including hotels and resorts. There
can be no  assurance  that we will be able to obtain  financing  for projects or
that the terms on which such financing can be obtained will be acceptable to us.
The inability to obtain financing for a project could cause  cancellation of, or
short-term  interruption  in, the progress or  completion  of  properties  under
construction or development.

Additionally,  any construction  project entails significant  construction risks
that  could  delay  or  result  in  a  substantial   increase  in  the  cost  of
construction.  The opening of newly constructed  properties,  in particular,  is
contingent upon, among other things,  receipt of all required licences,  permits
and  authorizations,  including  local  land use  permits,  building  and zoning
permits,  health and safety permits and liquor licences.  Changes or concessions
required by regulatory  authorities  could also involve  significant  additional
costs and delays or prevent  completion of construction or opening of a project.
As a result of the global nature of our business, these regulatory matters arise
in a number of jurisdictions, many of which have distinctive regulatory regimes.

INVESTMENTS IN AND ADVANCES TO MANAGED AND OWNED PROPERTIES

We have made  investments  in,  and/or  advances  in respect of or to owners of,
several of the hotels and  resorts  that we manage,  to enable us to acquire the
management  agreements  for those  properties  or to enhance  the terms of those
agreements.  Currently,  we hold an ownership or leasehold  interest in, or have
made  advances in respect  of, 30 of the 64 hotels and  resorts  that we manage,
including a 100% leasehold  interest in each of Four Seasons Hotel Vancouver and
The Pierre in New York.  We also have made,  or expect to make in the near term,
investments  in,  or  advances  in  respect  of or to  owners  of,  17 of the 26
properties under construction or development. In addition, we have an investment
in three  Four  Seasons  Residence  Club  properties.  The  book  value of total
investments and advances as at December 31, 2004 was approximately $564 million.

In  addition  to the risks  associated  with the  operation  of a hotel,  we are
subject  to risks  generally  related  to  owning  and  leasing  real  estate in
connection with these properties. These risks include, among others,


                                     - 19 -

<PAGE>

adverse  changes  in  general  or  local economic conditions,  local real estate
market conditions,  property and income taxes, interest rates, the availability,
cost and terms of  financing,  the  financial  stability of the property  owner,
liability  for  long-term  lease  obligations,  the  availability  and  costs of
insurance  coverage,  the potential for uninsured casualty and other losses, the
impact of present or future legislation or regulation  (including those relating
to the environment), adverse changes in zoning laws and other regulations, civil
unrest, terrorism, war and political instability. In addition, these investments
in real  estate  are  relatively  illiquid  and our  ability  to  dispose of our
ownership  interests,  particularly  our  leasehold  interests,  in  response to
changes in economic or other  conditions  may be limited.  Further,  advances to
owners of  properties  are  typically  subordinated  and,  in any event,  may be
subject to loss in the event of  insolvency of the owner to which an advance was
made. Any of these factors could result in material  operating losses by us or a
particular  hotel or resort and possibly the whole or partial loss of our equity
investment  in the property or the  inability to collect  advances  outstanding.
Holding an interest in a hotel also introduces  risks associated with funding of
capital  expenditures  and  incurring our  proportionate  share of any operating
losses. Where cash and working capital reserves provided by hotel operations are
insufficient,   debt  service,  major  repairs,   renovations,   refurbishments,
alterations or other capital expenditures generally must be funded by the owners
of the hotels and resorts, including us in some cases.

DEBT RATING RISKS

Our corporate rating is currently investment grade (BBB-) as rated by Standard &
Poor's.  Our senior  unsecured  debt is  currently  rated by three  debt  rating
agencies (Standard & Poor's: BBB- with stable outlook; Moody's: Baa3 with stable
outlook;  Dominion Bond Rating Services:  BBB- with stable outlook). As a result
of current global economic and political  events, it is possible that the rating
agencies  may  downgrade  the  rating  and/or  outlook  for many of the  lodging
companies,  which  would  result  in an  increase  in our  borrowing  costs.  In
addition,  pricing  of any  amounts  drawn  under  our  syndicated  bank  credit
facilities  (which are  undrawn but under  which  US$10.9  million of letters of
credit were  issued at December  31,  2004)  includes a spread to LIBOR  ranging
between 0.875% and 2.25%,  depending upon the ratings from Standard & Poor's and
Moody's and certain financial ratios.

GOVERNMENT REGULATION

We are subject to laws,  ordinances  and  regulations  relating  to, among other
things,  taxes,  environmental  matters,  the  preparation  and sale of food and
beverages,  accessibility  for disabled  persons and general building and zoning
requirements in the various jurisdictions in which we manage hotels and resorts.
Owners and managers of hotels and resorts also may be subject to laws  governing
the relationship with employees, including minimum wage requirements,  overtime,
working conditions and work permit requirements.  Compliance with these laws can
affect the  revenues  and profits of hotels and  resorts  managed by us or could
materially  and  adversely  affect  our  business,  results  of  operations  and
financial condition.

Four Seasons,  as the current or previous  owner or operator of certain  hotels,
could be liable  for  investigation  and  clean-up  of  contamination  and other
corrective or remedial  action under various laws,  ordinances  and  regulations
relating to environmental  matters.  These laws often impose  liability  without
regard to whether the owner or operator  knew of, or was  responsible  for,  the
condition requiring environmental response and whether the party is currently or
formerly the owner or manager of the  property.  The  presence of  contamination
from  hazardous  or toxic  substances,  or the failure to  properly  remediate a
contaminated  property,  may affect  the  ability  to use the  property  for its
intended purpose, to sell or rent the property,  or to borrow using the property
as collateral. Persons who arrange for the disposal or treatment of hazardous or
toxic  substances  also may be liable for the cost of removal or  remediation of
substances  at the  disposal  or  treatment  facility.  In  connection  with the
operation and ownership of various  properties,  we could be held liable for the
cost of remedial action with respect to environmental  matters. We are not aware
of any  potential  material  environmental  liabilities  for  which  we


                                     - 20 -
<PAGE>

will   be   responsible   with   respect   to  any of the  properties  which  we
currently manage or previously managed.

Pursuant  to the  management  agreements  to which we are a party,  the owner is
responsible  for the costs and  expenses of the  employees at each hotel and for
all costs, expenses and liabilities incurred in connection with the operation of
the hotel,  including  compliance with government  regulations.  However, as the
manager,  we may be  contingently  liable for certain  liabilities in respect of
which we do not maintain  insurance,  including  certain  workers'  compensation
claims,  environmental  liabilities  and,  in  respect  of hotels in the  United
States, claims arising under the AMERICANS WITH DISABILITIES ACT.

We generally obtain  indemnities from the owners of the hotels that we manage in
respect of these liabilities.  The value of those indemnities is dependent upon,
among other  things,  the  financial  condition of the owners who have  provided
them.

POLITICAL RISK

We currently  manage and/or have an equity  interest in hotels and resorts in 28
countries and  currently  have  development  plans to open hotels and resorts in
nine additional countries around the world. In certain of these countries,  from
time to time,  the related  assets and revenues may be exposed to political  and
other risks  associated  with  foreign  investment.  In some  jurisdictions,  at
certain  times,  there may be a risk that we may have  difficulty  enforcing our
contractual  rights  relating  to  our  assets  including  our   non-disturbance
agreements and any security  relating to our loan  receivables if due process of
law is not respected.

INSURANCE

All hotels and resorts managed by us are required to be insured against property
damage,  business  interruption and liability at the expense of the owner of the
property. Under these policies we are also typically insured against loss of fee
income in the event of a temporary  business  interruption  at any of the hotels
and resorts that we manage. In addition,  we obtain  indemnities from the owners
of the hotels and resorts  that we manage in respect of damages  caused by acts,
omissions and  liabilities  of the employees of the property or of Four Seasons,
other than damages  resulting  from certain  actions of Four Seasons and certain
senior  management  personnel.  If we were held liable for amounts exceeding the
limits  of our  insurance  coverage  or for  claims  outside  the  scope of that
coverage or if the indemnities were insufficient for any reason,  including as a
result of the owner's or indemnitor's financial condition, our business, results
of  operations  and  financial  condition  could  be  materially  and  adversely
affected.

Events of September 11, 2001 severely affected an already  tightening  insurance
market.  Premiums have  increased  and  underwriters  are imposing  increasingly
restrictive  terms and  conditions.  All lines of coverage  generally  have been
affected;  however,  commercial  properties  generally  continue  to be the most
difficult to insure.  Exposures for terrorism,  cyber perils and toxic mould are
now common exclusions.

LEGAL PROCEEDINGS

In the  ordinary  course of our  business,  we are named as a defendant in legal
proceedings  resulting  from  incidents  taking  place at  properties  we own or
manage. We maintain comprehensive liability insurance and also require owners to
maintain adequate insurance coverage. We believe such coverage to be of a nature
and amount sufficient to ensure that we are adequately  protected from suffering
material financial loss as a result of such claims.


                                     - 21 -

<PAGE>

CURRENCY EXPOSURE

We have entered into management agreements with respect to hotels throughout the
world and record sales and liabilities in the local currencies for many of these
hotels.  We report our results in Canadian dollars.  However,  our most relevant
currency  risk is in US dollars,  as more than half of our  revenues  and assets
currently  are US  dollar-denominated,  as are  the  majority  of our  long-term
obligations and investment  commitments.  As a result, our results and financial
position  are  affected  by  foreign  exchange  rate   fluctuations   and,  most
significantly,  changes in the value of the US dollar  through both  translation
risk (which is the risk that financial  statements for a particular period or as
of a  certain  date  depend  on the  prevailing  exchange  rate  of the  various
currencies  against the US dollar) and transaction  risk (which is the risk that
the currency of costs and liabilities  fluctuates in relation to the currency of
revenues and assets,  which may  materially  and adversely  affect our business,
results of operations and financial condition).  With respect to the translation
risk,  the  fluctuations  of  currencies  against  the  Canadian  dollar  can be
substantial,  and our  reported  results  could  fluctuate  materially  and have
fluctuated materially as a result of foreign exchange fluctuations.

We  endeavour  to match  foreign  currency  revenues to costs,  liabilities  and
investment  commitments  to  provide a natural  hedge  against  translation  and
transaction  risks,  although there can be no assurance that these measures will
be effective in the  management of those risks.  We also endeavour to manage our
currency  exposure  through,  among other  things,  the use of foreign  exchange
forward  contracts.  In  addition,  certain  currencies  are subject to exchange
controls or are not freely tradeable and as a result are relatively illiquid. We
attempt to minimize our foreign  currency risk by monitoring  our cash position,
keeping fee receivables  current,  monitoring the political and economic climate
and considering  whether to insure  convertibility risk in each country in which
we manage a property.  In certain hotels, the foreign currency risks are further
mitigated by pricing room rates in US dollars.  However,  no  assurances  can be
given as to  whether  our  strategies  relating  to  currency  exposure  will be
successful or that foreign exchange  fluctuations will not materially  adversely
affect our business, results of operations and financial condition.

SEASONALITY

Our hotels and resorts are affected by normally recurring seasonal patterns and,
for most of the  properties,  demand is lower in  December  through  March  than
during the remainder of the year.

Management  operations  are seasonal in nature,  as fee revenues are affected by
the seasonality of hotel and resort revenues and operating results. Urban hotels
generally  experience lower revenues and operating results in the first quarter,
which has a negative  impact on  management  revenues.  However,  this  negative
impact on management  revenues generally is offset, to some degree, by increased
travel to resorts in that  quarter and may be offset to a greater  extent as the
portfolio of resort  properties that we manage  increases.  In 2002, this normal
seasonality was also affected by the delayed recovery in the global economy, and
ongoing  geopolitical  concerns,  which  have  continued  to  negatively  affect
business travel on a global basis. In addition, specific local events can cause,
and from time to time have caused,  unanticipated  disruptions to the operations
of certain of our properties.

Our ownership  operations are  particularly  affected by seasonal  fluctuations,
with  lower  revenue,  operating  profit  and cash  flow in the  first  quarter;
ownership  positions  typically  incur an operating loss in the first quarter of
each year.  Typically,  the  fourth  quarter is the  strongest  quarter  for the
majority of the hotels,  although  this was not true in 2001, as a result of the
terrorist  attacks  in the  United  States,  nor in  2002,  as a  result  of the
difficult economic environment and continued geopolitical instability.


                                     - 22 -

<PAGE>

INTELLECTUAL PROPERTY

In the highly  competitive  service  industry in which we operate,  trade names,
trademarks,  service  marks  and  logos  are very  important  in the  sales  and
marketing  of those  services.  We have a  significant  number  of trade  names,
trademarks,  service  marks and  logos,  and  significant  time and  effort  are
expended each year on  surveillance,  registration  and  protection of our trade
names,  trademarks,  service marks and logos. The loss or infringement of any of
our trade names,  trademarks,  service  marks or logos could have a material and
adverse effect on our business, results of operations and financial condition.

RISKS ASSOCIATED WITH RESIDENCE CLUB BUSINESS

We currently operate three Residence Clubs. We are expanding our presence in the
luxury segment of the interval and fractional ownership industry,  with a number
of other projects under  development.  Our ability to  successfully  develop and
sell interests in Residence Clubs that are built, and the various fees earned by
us from each Residence Club project,  could be materially and adversely affected
by one or any  combination of the factors  described in this  "Operating  Risks"
section.  Additionally,  the  laws of many  jurisdictions  in  which we may sell
interests  in our  Residence  Clubs  grant  purchasers  the right to rescind the
purchase contract at any time within a statutory rescission period.  Although we
believe that we are in compliance in all material  respects with applicable laws
and  regulations  to  which  Residence  Club  marketing,  sales  and  operations
currently are subject,  changes in these  requirements or a  determination  by a
regulatory  authority  that  we  are  not in  compliance  could  materially  and
adversely  affect our business,  results of operations and financial  condition.
Additionally,  if a purchaser  of an  ownership  interest  in a  Residence  Club
defaults, we may not recover the marketing,  selling and general  administrative
costs related to that sale.

DEPENDENCE ON KEY EMPLOYEES

Our success depends in part on the continued  service of our senior  executives,
who have an average of 22 years of experience with us. In particular, our senior
management is  responsible  for the  development  and/or  maintenance of ongoing
relationships with new and existing investors in the properties that are managed
by  us.  The  unanticipated  departure  of  individuals  responsible  for  those
relationships  could have a material and adverse  effect on, among other things,
relationships affecting properties that are, or that may be, managed by us.

                               MATERIAL CONTRACTS

Except for the  following,  since  January  1,  2002,  we did not enter into any
material contracts, other than contracts in the ordinary course of business that
still are in effect and material to Four Seasons:

     o    Indenture  dated as of June 18, 2004 between Four Seasons and the Bank
          of Nova Scotia Trust Company of New York,  as trustee,  under which we
          may  from  time to time  issue  unsecured  debentures,  notes or other
          evidences of indebtedness in an unlimited amount,  issuable in series,
          and

     o    a First  Supplemental  Indenture dated as of June 18, 2004 relating to
          the  issue of our  1.875%  Convertible  Senior  Notes  due 2024 in the
          aggregate principal amount of US$250,000,000, all of which were issued
          pursuant  to  a  prospectus  supplement  dated  June  14,  2004  to  a
          prospectus of Four Seasons dated April 6, 2004.

See "Corporate Information -- Convertible Senior Notes" for details of the terms
of convertibility of these notes.  Copies of the documents referred to above are
available on WWW.SEDAR.COM.


                                     - 23 -

<PAGE>

                              CORPORATE INFORMATION

DESCRIPTION OF SHARE CAPITAL

Our authorized share capital consists of an unlimited number of First Preference
Shares,  issuable in series,  an unlimited number of Second  Preference  Shares,
issuable in series,  3,725,698  Variable Multiple Voting Shares and an unlimited
number of Limited Voting Shares. At March 14, 2005,  3,725,698 Variable Multiple
Voting  Shares,  32,883,188  Limited  Voting  Shares  and  options  to  purchase
4,575,143 Limited Voting Shares were outstanding.

The following is a summary of the material  attributes of our Variable  Multiple
Voting Shares and Limited Voting Shares.

     DIVIDENDS

The dividends  declared and paid on our Variable  Multiple Voting Shares will be
in amounts  per share  equal to 50% of the  dividends  declared  and paid on our
Limited  Voting Shares,  regardless of whether the number of votes  attaching to
the Variable Multiple Voting Shares is further increased.

     RIGHTS ON DISSOLUTION

In the event of the liquidation,  dissolution or winding up of FSHI, the holders
of Limited Voting Shares and Variable  Multiple  Voting Shares will be entitled,
share for share,  to  receive,  on a PRO RATA  basis,  all of the assets of FSHI
remaining after payment of all of its  liabilities,  subject to the preferential
rights of any shares  ranking  prior to the Limited  Voting  Shares and Variable
Multiple Voting Shares.

     VOTING RIGHTS

The holders of Limited Voting Shares and Variable Multiple Voting Shares will be
entitled to receive notice of any meeting of our  shareholders and to attend and
vote thereat,  except those meetings where only the holders of shares of another
class or of a particular  series are entitled to vote. Each Limited Voting Share
will  entitle  the  holder to one vote.  Each  Variable  Multiple  Voting  Share
currently  entitles  the  holder to that  number of votes  that  results  in the
aggregate  votes attaching to the Variable  Multiple Voting Shares  representing
approximately  64.55% of the votes  attaching  to the Variable  Multiple  Voting
Shares and the Limited  Voting  Shares,  in the  aggregate.  The number of votes
attaching to the Variable  Multiple Voting Shares adjusts  concurrently with the
issue of  additional  Limited  Voting  Shares in order to  maintain  this voting
control.  Holders of Limited Voting Shares are entitled,  voting separately as a
class, to elect two members of our board of directors annually.

Under the provisions attaching to the Variable Multiple Voting Shares, beginning
with the annual  meeting  held in 2000 and every  three  years  thereafter,  the
continued  application of this adjusting mechanism is subject to ratification by
the holders of our Limited  Voting  Shares.  The  adjusting  mechanism  was last
ratified by  shareholders  at the annual and special  meeting of shareholders in
2003.  If the  maintenance  of the  adjustment  mechanism is not  confirmed by a
simple majority of the votes cast by the holders of Limited Voting Shares (other
than "prescribed holders" of Limited Voting Shares), any issue of Limited Voting
Shares after that time (other than the issue of Limited  Voting Shares  pursuant
to a right,  option or similar  obligation  granted prior to that time) will not
result in a further  adjustment in the number of votes attaching to the Variable
Multiple  Voting  Shares.   Additionally,   the  continued  application  of  the
adjustment  mechanism  will be subject to  ratification  after any  transfer  of
Variable  Multiple Voting Shares that results in a person other than a member of
the Sharp Family (as defined in the articles of FSHI) holding Variable  Multiple
Voting Shares or after Isadore Sharp ceases to be the Chief  Executive  Officer.
For these purposes,  the "prescribed holders" of Limited Voting Shares shall be:
(a) any  person or company  that  beneficially  owns,  directly  or  indirectly,
Variable  Multiple  Voting Shares;  (b) any person or


                                     - 24 -

<PAGE>

company  that  beneficially  owns,  directly  or indirectly, securities carrying
more  than  20% of  the  votes  attaching  to  all  of  our  outstanding  voting
securities;  (c)  any  associate,  insider  or  affiliate  (as  defined  in  the
SECURITIES ACT  (Ontario)) of any person or company  referred to in (b); (d) any
of our affiliates (as defined in the SECURITIES ACT  (Ontario));  (e) any person
or company that, alone or in concert with others, effectively controls FSHI; and
(f) if all of (b), (d) and (e) are  inapplicable,  all directors and officers of
FSHI and their  associates (as defined in the SECURITIES ACT (Ontario)).  To our
knowledge,  the prescribed  holders are Triples Holdings Limited,  Isadore Sharp
and Rosalie Sharp.

     TAKE-OVER BID PROTECTION

Variable  Multiple  Voting Shares will be converted  automatically  into Limited
Voting  Shares  upon any  transfer  thereof,  except (i) a  transfer  within the
immediate  family of Isadore  Sharp (so long as the family  beneficially  owns a
majority of the outstanding  Variable Multiple Voting Shares) or (ii) a transfer
of a majority of the outstanding  Variable Multiple Voting Shares to a purchaser
who has offered to purchase all outstanding  Variable Multiple Voting Shares and
will, as a result, have acquired a majority of the outstanding Variable Multiple
Voting Shares and who offers to purchase all  outstanding  Limited Voting Shares
for a per share  consideration  equal to that offered for the Variable  Multiple
Voting Shares.

Triples Holdings  Limited,  which owns all of the outstanding  Variable Multiple
Voting  Shares,  has entered into an agreement  with  Montreal  Trust Company of
Canada,  as trustee for the benefit of the holders of the Limited Voting Shares,
that has the effect of preventing  transactions that otherwise would deprive the
holders of Limited Voting Shares of rights under applicable provincial take-over
bid legislation to which they would have been entitled if the Variable  Multiple
Voting Shares had been Limited Voting Shares.

     CONVERSION

Variable  Multiple Voting Shares are convertible into Limited Voting Shares on a
one-for-one basis at any time at the option of the holder.

     MODIFICATIONS, SUBDIVISIONS AND CONSOLIDATION

Modifications to the provisions attaching to the Variable Multiple Voting Shares
as a class,  or to the  Limited  Voting  Shares  as a class,  will  require  the
separate  affirmative  vote of  two-thirds of the votes cast at a meeting of the
holders of the shares of the respective  class. No subdivision or  consolidation
of the Variable  Multiple Voting Shares or of the Limited Voting Shares may take
place unless the Limited Voting Shares or the Variable  Multiple  Voting Shares,
as the case may be, are  concurrently  subdivided  or  consolidated  in the same
proportion.  If we propose to grant rights to holders of shares of any class, as
a class, to acquire additional voting or participating securities (or securities
convertible into voting or participating securities), the holders of the Limited
Voting Shares and the Variable  Multiple Voting Shares shall for the purposes of
that distribution be deemed to be holders of shares of the same class.

TRANSFER AGENT AND REGISTRAR

The  registrar  and transfer  agent for our Limited  Voting  Shares in Canada is
Computershare Trust Company of Canada, Toronto, Ontario, Canada.

MARKET FOR SECURITIES

Our  Limited  Voting  Shares  are  listed  on the  Toronto  and New  York  stock
exchanges.  The following  table sets forth the high and low closing  prices and
trading  volumes of the Limited  Voting  Shares as  reported by these  exchanges
during the periods indicated, according to published reports:


                                     - 25 -

<PAGE>

--------------------------------------------------------------------------------
                                NYSE                           TSX
                        PRICE RANGE                    PRICE RANGE
                        -----------                    -----------
2004                HIGH US$   LOW US$   VOLUME   HIGH CDN$   LOW CDN$   VOLUME
--------------------------------------------------------------------------------
January..........    $52.89    $49.61  3,842,100    $70.06    $63.13    412,500
February.........    $56.85    $51.75  2,758,500    $76.50    $68.50    444,113
March............    $56.75    $50.77  4,611,200    $75.00    $67.25    616,665
April............    $56.75    $51.90  2,838,500    $77.00    $69.05    578,586
May..............    $55.45    $51.42  3,543,900    $76.57    $70.08    329,532
June.............    $60.85    $52.02  8,271,100    $81.30    $70.20    764,159
July.............    $62.99    $58.51  5,110,200    $83.26    $77.00    342,566
August...........    $61.07    $55.33  6,089,900    $82.48    $72.50    524,624
September........    $64.31    $57.04  4,121,500    $81.75    $74.67  1,042,175
October..........    $68.53    $64.08  4,063,900    $86.00    $82.45    576,448
November.........    $72.56    $66.91  4,120,200    $87.11    $80.88    871,435
December.........    $84.50    $70.55  6,828,200   $104.72    $98.11  1,257,876

On March 14, 2005 the last reported sale prices of the Limited  Voting Shares on
the NYSE and TSX were US$70.84 and Cdn$85.46 per share, respectively.

DIVIDEND POLICY

It is our policy to pay a semi-annual  dividend to holders of our Limited Voting
Shares and Variable  Multiple Voting Shares. In each of the years 2002, 2003 and
2004 we paid  semi-annual  cash dividends of $0.055 per Limited Voting Share and
$0.0275 per Variable Multiple Voting Share. There are no restrictions  currently
that prevent us from continuing to pay dividends on this basis. We do not expect
to change our dividend policy in 2005.

CONVERTIBLE SENIOR NOTES

On June 18, 2004 we  completed a public  offering  of US$250  million  principal
amount of 1.875%  convertible  senior notes due July 30, 2024. The notes will be
convertible into Limited Voting Shares at an initial  conversion rate of 13.9581
shares per US$1,000 principal amount in certain  circumstances,  including those
in which  the  Limited  Voting  Shares  have  traded  for more  than 130% of the
conversion price for a specified  period,  the notes have had a trading price of
less than 95% of the market price of the Limited  Voting  Shares into which they
may be  converted  for a  specified  period,  the  notes  have been  called  for
redemption,  or a specified  corporate  transaction or a fundamental  change has
occurred.

RATINGS

Our US$250 million of convertible  senior notes have been assigned the following
ratings:

Standard & Poor's:  BBB- with a stable rating outlook.  As defined by Standard &
Poor's,  an  obligation  rated  BBB  exhibits  adequate  protection  parameters.
However,  adverse economic conditions or changing  circumstances are more likely
to lead to a weakened  capacity of the obligor to meet its financial  commitment
on the obligation. The rating is modified by a minus sign, which is used to show
relative  standing  within  this  rating  category.  The rating  outlook,  which
assesses the potential  direction of the credit rating over the  intermediate to
longer term, is stable, which means the rating is not likely to change.

Moody's  Investors  Service:  Baa3 with a stable rating  outlook.  As defined by
Moody's,  obligations  rated Baa are subject to moderate  credit risk.  They are
considered   medium-grade   and  as  such  may   possess   certain   speculative
characteristics.  The  modifier  3  indicates  a ranking in the lower end of the
rating category.  The rating outlook means the rating is not likely to change in
the medium term (18 to 36 months).


                                     - 26 -

<PAGE>

Dominion Bond Rating  Services  ("DBRS"):  BBB with a stable  rating  trend.  As
defined  by DBRS,  long-term  debt  rated  BBB is of  adequate  credit  quality.
Protection of interest and principal is considered acceptable, but the entity is
fairly susceptible to adverse changes in financial and economic  conditions,  or
there may be other adverse  conditions  present which reduce the strength of the
entity  and its  rated  securities.  The  absence  of  either a "high"  or "low"
designation  indicates the rating is in the middle of the rating  category.  The
rating trend is designed to give the investor an  understanding of DBRS' opinion
regarding the outlook for the rating.

Credit  ratings are meant to give an indication of the risk that a borrower will
not  fulfill  its full  obligations  in a timely  manner,  with  respect to both
interest  and  principal  commitments.  The ratings are current  opinions of the
relative credit risk of fixed-income  obligations  with an original  maturity of
one year or more.  Such ratings  reflect both the  likelihood of default and any
financial loss suffered in the event of default.  Credit ratings may be changed,
suspended,  or withdrawn as a result of changes in, or  unavailability  of, such
information, or based on other circumstances.  The issued credit rating is not a
recommendation to purchase, sell, or hold a financial obligation, inasmuch as it
does not comment as to market price or suitability for a particular investor.

                             DIRECTORS AND OFFICERS

The following  table sets forth  certain  information  regarding  each of FSHI's
executive officers and directors:

--------------------------------------------------------------------------------
NAME AND RESIDENCE           POSITION WITH FSHI      PRINCIPAL OCCUPATION
--------------------------------------------------------------------------------
Isadore Sharp                Chairman, Chief         Chairman and Chief
ONTARIO, CANADA              Executive Officer       Executive Officer, Four
                             and Director            Seasons Hotels Limited
--------------------------------------------------------------------------------
Brent Belzberg(1)            Director                Managing Partner,
ONTARIO, CANADA                                      Torquest Partners Inc.(2)
--------------------------------------------------------------------------------
H. Roger Garland             Director                Corporate Director
ONTARIO, CANADA
--------------------------------------------------------------------------------
Nan-b de Gaspe               Director                Co-Chair, Business
Beaubien(1),(3),(4)                                  Families Foundation(5)
QUEBEC, CANADA                                       and Co-Chair, Philbeau
                                                     Company(6)
--------------------------------------------------------------------------------
Charles S. Henry(4),(7)      Director                President, Hotel
NEW YORK, USA                                        Capital Advisers, Inc.(8)
--------------------------------------------------------------------------------
Heather Munroe-Blum(4)       Director                Principal and Vice
QUEBEC, CANADA                                       Chancellor, McGill
                                                     University(9)
--------------------------------------------------------------------------------
Ronald W. Osborne(10)        Director                Corporate Director
ONTARIO, CANADA
--------------------------------------------------------------------------------
J. Robert S. Prichard(3),(4) Lead Director           President and Chief
ONTARIO, CANADA                                      Executive Officer, Torstar
                                                     Corporation(11)
--------------------------------------------------------------------------------
Lionel H. Schipper(1),(10)   Director                President, Schipper
ONTARIO, CANADA                                      Enterprises Inc.(6)
--------------------------------------------------------------------------------
Anthony Sharp                Director                President, Sharpwise Ltd.
ONTARIO, CANADA                                      (12)
--------------------------------------------------------------------------------
Benjamin Swirsky(10)         Director                Chairman and Chief
ONTARIO, CANADA                                      Executive Officer,
                                                     Beswir Properties Inc.(6)
--------------------------------------------------------------------------------
Shuichiro Tamaki             Director                Executive Vice
TOKYO, JAPAN                                         President, Japan-Mexico
                                                     Hotel Investment Co., Ltd.
                                                     (13)
--------------------------------------------------------------------------------


                                     - 27 -

<PAGE>

--------------------------------------------------------------------------------
NAME AND RESIDENCE         POSITION WITH FSHI      PRINCIPAL OCCUPATION
--------------------------------------------------------------------------------
Simon M. Turner(1),(7)     Director                Principal, Hotel
NEW YORK, USA                                      Capital Advisers, Inc.(8)
--------------------------------------------------------------------------------
Sarah Cohen                Vice President,         Vice President,
ONTARIO, CANADA            Corporate Counsel       Corporate Counsel and
                           and Assistant           Assistant Secretary,
                           Secretary               Four Seasons Hotels
                                                   Limited
--------------------------------------------------------------------------------
Wolf H. Hengst             President,              President, Worldwide
ONTARIO, CANADA            Worldwide Hotel         Hotel Operations, Four
                           Operations              Seasons Hotels Limited
--------------------------------------------------------------------------------
Douglas L. Ludwig          Executive Vice          Executive Vice
ONTARIO, CANADA            President, Chief        President, Chief
                           Financial Officer       Financial Officer and
                           and Treasurer           Treasurer, Four Seasons
                                                   Hotels Limited
--------------------------------------------------------------------------------
Craig O. Reith             Vice President,         Vice President, Finance
ONTARIO, CANADA            Finance and             and Assistant
                           Assistant Treasurer     Treasurer, Four Seasons
                                                   Hotels Limited
--------------------------------------------------------------------------------
Kathleen Taylor            President,              President, Worldwide
ONTARIO, CANADA            Worldwide Business      Business Operations,
                           Operations              Four Seasons Hotels
                                                   Limited
--------------------------------------------------------------------------------
Randolph Weisz             Executive Vice          Executive Vice
ONTARIO, CANADA            President, General      President, General
                           Counsel and             Counsel and Secretary,
                           Secretary               Four Seasons Hotels
                                                   Limited
--------------------------------------------------------------------------------

1     Member of the Human Resources Committee.

2     Private equity fund manager.

3     Elected by the holders of the Limited Voting Shares.

4     Member of the Corporate Governance Committee.

5     Non-profit foundation.

6     Investment holding company.

7     Nominee of  Kingdom,  which has the right  pursuant to an  agreement  with
      Triples  Holdings  Limited and Isadore Sharp to elect two directors to the
      FSHI Board of Directors.

8     Hotel investment advisory firm.

9     Educational institute.

10    Member of the Audit Committee.

11    Media and publishing company.

12    Real estate/resort development company.

13    Real estate holding company.

Isadore Sharp has served as a director of FSHI and its  predecessor  corporation
since January 9, 1978. H. Roger Garland and Benjamin Swirsky were elected to the
board of directors of FSHI's predecessor  corporation on October 1, 1985. Lionel
H.  Schipper  was  appointed  to the board of  directors  on February  18, 1988.
Shuichiro  Tamaki was  appointed  to the board of  directors  on April 18, 1991.
Charles S. Henry was  appointed  to the board of directors on November 11, 1994.
J. Robert S.  Prichard was appointed to the board of directors on March 6, 1996.
Nan-b de Gaspe  Beaubien  was elected to the board of directors on May 23, 1997.
Anthony Sharp was appointed to the board of directors on August 25, 1999.  Simon
M. Turner was re-appointed to the board of directors on February 14, 2002. Brent
Belzberg  and Heather  Munroe-Blum  were  appointed to the board of directors on
November 7, 2002. Ronald W. Osborne was elected to the board of directors on May
21, 2003.


                                     - 28 -

<PAGE>

All  of  the  directors  will hold office  until the next   annual   meeting  of
shareholders, or until their successors are elected or appointed.

All our executive  officers and directors have held their principal  occupations
for more than five years with the exception of the following. Brent Belzberg was
President and CEO of Harrowston Inc. prior to February 2002. Heather Munroe-Blum
was a Professor at the  University of Toronto prior to December 31, 2002 and was
Vice-President,  Research  and  International  Relations  at the  University  of
Toronto  prior to June 1,  2002.  H. Roger  Garland  was Vice  Chairman  of Four
Seasons  Hotels  Limited  prior to  December  29,  2000.  Ronald W.  Osborne was
President  and Chief  Executive  Officer of Ontario Power  Corporation  prior to
December 4, 2003.  J. Robert S.  Prichard  was  Professor  of Law and  President
Emeritus, University of Toronto prior to July 1, 2001 and President,  University
of  Toronto  prior  to  June  30,  2000.  Shuichiro  Tamaki  was  Advisor,  Jowa
Corporation  prior to June 26, 2000.  Kathleen  Taylor was President,  Worldwide
Business Operations and Secretary prior to February 15, 2001. Randolph Weisz was
Senior Vice  President and General  Counsel of Four Seasons Hotels Limited prior
to August 6, 2002.  Sarah Cohen was  Corporate  Counsel of Four  Seasons  Hotels
Limited prior to February 15, 2001.

Heather  Munroe-Blum  served on the board of directors of Livent Inc.  from June
1998  through  November 27, 1998.  On November  18,  1998,  Livent Inc.  filed a
voluntary  petition under Chapter 11 of the US Bankruptcy  Code. On November 19,
1998, Livent Inc. filed for protection under the COMPANIES CREDITORS ARRANGEMENT
ACT. Additionally,  on August 28, 1998 the Ontario Securities Commission made an
order pursuant to section 127(5) of the SECURITIES ACT (Ontario) that trading in
securities  of  Livent  Inc.  cease  immediately  for a period of 15 days on the
grounds that there was not sufficient  information  in the  marketplace on which
investors  could  make  informed  decisions  as to the  purchase  or sale of the
securities of Livent Inc.  That order was  extended,  with the consent of Livent
Inc., on September  11, 1998.  That cease trade order was revoked by the Ontario
Securities Commission on November 19, 1998.

Ronald W.  Osborne  served on the board of  directors  of Air Canada from May of
1999  to  September  of  2004.  In  September   2004  Air  Canada   completed  a
court-sanctioned  restructuring  process and  implemented a plan of  arrangement
under the corporate and insolvency laws of Canada.

Kathleen  Taylor was formerly a director of The T. Eaton Company  Limited which,
in 1999,  completed  a  court-sanctioned  reorganization  pursuant  to a plan of
compromise and  arrangement  under the corporate and insolvency  laws of Ontario
and Canada,  respectively.  As a result of this situation, trading of the common
shares of Eaton's was suspended by the Toronto Stock Exchange on August 23, 1999
and  the  common  shares  were  ultimately   delisted  in  connection  with  the
implementation of the reorganization.

Our directors and executive officers, as a group, own beneficially,  directly or
indirectly,  or exercise  control or direction  over,  the  following  number of
Limited Voting Shares and Variable Multiple Voting Shares:

--------------------------------------------------------------------------------
DESCRIPTION OF CLASS                     NUMBER OF SHARES    PERCENTAGE OF CLASS
--------------------------------------------------------------------------------
Limited Voting Shares                          180,128            0.547%
--------------------------------------------------------------------------------
Variable Multiple Voting Shares              3,725,698              100%
--------------------------------------------------------------------------------

                                     EXPERTS

Our  auditors  are KPMG  LLP,  who have  prepared  the  auditors  report  to our
shareholders  on our  consolidated  financial  statements  for  the  year  ended
December 31, 2004.


                                     - 29 -

<PAGE>

                           AUDIT COMMITTEE INFORMATION

AUDIT COMMITTEE CHARTER

Our Board of Directors has approved a written  charter for the Audit  Committee,
the text of which is set out in Schedule  "A". Our Audit  Committee  charter may
also be viewed on our website at WWW.FOURSEASONS.COM.

COMPOSITION OF AUDIT COMMITTEE

The  members  of the Audit  Committee  are  Ronald  Osborne  (Chair),  Lionel H.
Schipper and Benjamin Swirsky.  Our Board of Directors,  upon the recommendation
of the Corporate  Governance  Committee,  has determined that all members of the
Audit Committee are financially literate and independent.

EDUCATION AND EXPERIENCE

Ronald W. Osborne  (Chair),  B.A.,  F.C.A. - Mr. Osborne is a former partner and
member of several prominent  Chartered  Accountants firms and has held positions
as  President,  Chief  Executive  Officer  and Chief  Financial  Officer at four
Canadian public companies. Mr. Osborne currently serves on the board of a number
of Canadian public companies and community organizations. In addition to serving
as the Chair of the Audit Committee at Four Seasons, Mr. Osborne is the Chair of
the Audit Committee at another  Canadian public company,  the Chair of the Audit
Committee at one of Canada's largest real estate investment trusts, and a member
of the Audit Committee at two other Canadian public companies.

Lionel H. Schipper,  C.M., Q.C. - Mr. Schipper received his B.A. and L.L.B. from
the  University of Toronto and is a former  partner of a major Toronto law firm,
where he  specialized in corporate  finance and  securities  law. Since retiring
from  the firm he has been  actively  involved  in the  investment  business  as
President of a private firm. Mr. Schipper has for more than 20 years served as a
director of numerous  public  companies some of whose shares have been listed on
the New York  Stock  Exchange  and the  Toronto  Stock  Exchange.  Mr.  Schipper
currently serves on the board of directors at two Canadian public companies,  is
the Vice-Chair of the Centre for Research in  Neurodegenerative  Diseases at the
University  of Toronto  and is an  Honourary  Director  of the  Baycrest  Centre
Foundation.

Benjamin  Swirsky,  B. Comm.,  L.L.B.,  F.C.A. - Mr. Swirsky has held positions
as  the  President  and  Chief  Executive   Officer  at  four  Canadian  public
companies  and is a former senior  partner and member of a prominent  Chartered
Accountants  firm.  Mr.  Swirsky has served on the Board of Four Seasons and/or
its predecessor  corporation  since 1985, and currently  serves on the board of
directors of several Canadian public companies.

PRE-APPROVAL POLICIES AND PROCEDURES

The Audit Committee has considered whether the provision of services by KPMG LLP
other than audit services is compatible  with  maintaining  the  independence of
KPMG LLP.  The Audit  Committee  has  determined  that the  provision of certain
services  is  consistent  with that  independence  and has adopted a policy that
restricts us from engaging KPMG LLP for certain categories of non-audit services
and requires  pre-approval  by the Audit  Committee of audit  services and other
services  that KPMG LLP is not  restricted  by this policy from  providing.  The
services provided by, and fees paid to, KPMG LLP in 2004 were in compliance with
this policy.


                                     - 30 -

<PAGE>

AUDIT AND AUDIT-RELATED FEES

Audit fees charged by KPMG LLP totalled $1,468,759 in 2004 and $769,800 in 2003.

Audit-related  fees charged by KPMG LLP totalled $104,001 in 2004 and $88,800 in
2003.  Audit-related  fees include fees for assurance and related  services that
are reasonably  related to the  performance of the audit or review of our annual
financial statements and are not reported as part of audit fees, including audit
of employee  retirement  benefit plan,  advice with respect to internal controls
and other assurance reports.

TAX FEES

Fees charged by KPMG LLP for tax services,  including tax compliance, tax advice
and tax planning,  totalled approximately $254,606 in 2004 and $374,700 in 2003.
These services consisted of tax compliance (including the review of tax returns,
assistance  with  questions  regarding  tax  audits and  preparation  of certain
employee tax returns), and tax planning and advisory services relating to common
forms of domestic and international taxation.

ALL OTHER FEES

Fees charged by KPMG LLP for other services not described  above totalled nil in
2004 and $2,200 in 2003.


                                     - 31 -

<PAGE>

                                 CORPORATE CHART

The  following  chart   illustrates  our  corporate   structure,   and  includes
corporations  in  which  we have a  significant  interest,  either  directly  or
indirectly, and their jurisdictions of incorporation or organization.

         FOUR SEASONS HOTELS INC.
         (ONTARIO CORPORATION)
          |
         FOUR SEASONS HOTELS LIMITED(A)
         (ONTARIO CORPORATION)                                           100%(B)
          |
          |-----FOUR SEASONS HOTELS AND RESORTS B.V.(C)
          |     (NETHERLANDS CORPORATION)                                100%(B)
          |
          |-----FOUR SEASONS HOTELS AND RESORTS ASIA PACIFIC PTE LTD.(C)
          |     (SINGAPORE CORPORATION)                                  100%(D)
          |
          |-----FOUR SEASONS HOTELS (BARBADOS) LTD.
          |     (BARBADOS CORPORATION)                                   100%(B)
          |
          |-----FOUR SEASONS HOTELS (U.S.) INC.
                (DELAWARE CORPORATION)                                   100%(B)
Notes

      A.   The  management of Four Seasons  hotels in North America is generally
           carried out by Four Seasons Hotels Limited.
      B.   Direct.
      C.   The  management  of Four Seasons  hotels  outside  North  America and
           Regent  hotels is generally  carried out by Four  Seasons  Hotels and
           Resorts  B.V.  and Four  Seasons  Hotels and Resorts Asia Pacific Pte
           Ltd.
      D.   Indirect.

                             ADDITIONAL INFORMATION

Additional information about us, including directors' and officers' remuneration
and  indebtedness,  principal  holders of our securities and options to purchase
securities is contained in our Management  Information Circular prepared for the
most recent annual meeting of our shareholders. Additional financial information
is provided in our Consolidated Financial Statements for the year ended December
31, 2004 and related Management's  Discussion and Analysis. Such information and
other information about us may be found at WWW.SEDAR.COM.


                                     - 32 -

<PAGE>

                                  SCHEDULE "A"


                               [FOUR SEASONS LOGO]

                            FOUR SEASONS HOTELS INC.

                             AUDIT COMMITTEE CHARTER

                                     PURPOSE

The Audit  Committee  is  appointed  by the Board of Directors of the Company to
assist the Board in its oversight and evaluation of:

   o  the quality and integrity of the financial statements of the Company,

   o  the  compliance by the Company with legal and regulatory  requirements  in
      respect of financial disclosure,

   o  the   qualification,   independence   and  performance  of  the  Company's
      independent auditors, and

   o  the  performance  of the Company's  Chief  Financial  Officer and internal
      auditor.

In addition,  the Audit Committee  provides an avenue for communication  between
the internal  auditor,  the independent  auditor,  financial  management,  other
employees and the Board of Directors concerning accounting and auditing matters.

The Audit Committee is directly  responsible for the appointment,  compensation,
retention (and termination) and oversight of the work of the independent auditor
(including  oversight of the resolution of any disagreements  between management
and the independent  auditor regarding  financial  reporting) for the purpose of
preparing audit reports or performing other audit, review or attest services for
the Company.

The Audit Committee is not responsible for:

   o  planning or conducting audits,

   o  certifying or determining  the  completeness  or accuracy of the Company's
      financial  statements or that those financial statements are in accordance
      with generally accepted accounting principles, or

   o  guaranteeing the report of the Company's independent auditor.

The  fundamental  responsibility  for the  Company's  financial  statements  and
disclosure rests with  management.  It is not the duty of the Audit Committee to
conduct  investigations,  to  itself  resolve  disagreements  (if  any)  between
management and the independent  auditor or to assure  compliance with applicable
legal and regulatory requirements.


                                                         AS IN EFFECT MARCH 2005


<PAGE>

                                      - 2 -

                                     REPORTS

The Audit  Committee  shall report to the Board of Directors of the Company on a
regular basis and, in any event,  before the public disclosure by the Company of
its quarterly and annual financial  results.  The reports of the Audit Committee
shall  include any issues of which the  Committee  is aware with  respect to the
quality or integrity of the Company's financial statements,  its compliance with
legal or regulatory  requirements,  and the performance and  independence of the
Company's internal auditor and independent auditor.

The  Committee  also shall  prepare,  as required by  applicable  law, any audit
committee  report  required  for  inclusion  in  the  Company's  publicly  filed
documents.

                                   COMPOSITION

The members of the Audit  Committee  shall be three or more  individuals who are
appointed  (and may be replaced) by the Board of Directors of the Company on the
recommendation  of the Company's  Corporate  Governance  Committee.  Each of the
members of the Audit  Committee shall meet the Company's  categorical  standards
for director  independence and the experience  requirements of the Toronto Stock
Exchange,  the New York Stock Exchange and applicable legislation (including the
rules promulgated by Canadian  securities  regulators and the SARBANES-OXLEY ACT
OF 2002) and, without limitation, shall be financially literate (or acquire that
familiarity within a reasonable period after  appointment).  At least one member
of the Audit  Committee  shall be a "financial  expert",  as contemplated by the
rules promulgated by Canadian securities  regulators and the SARBANES-OXLEY ACT.
No member of the Audit Committee shall:

   o  accept  (directly  or  indirectly)  any  consulting,   advisory  or  other
      compensatory  fee from the  Company or any of its  subsidiaries(1)  (other
      than  remuneration  for acting in his or her capacity as a director) or be
      an "affiliated person"(2) of the Company or any of its subsidiaries, or

   o  concurrently  serve on the audit committee of more than three other public
      companies without the prior approval of the Audit Committee, the Corporate
      Governance  Committee and the Board of Directors  and their  determination
      that such simultaneous  service would not impair the ability of the member
      to effectively serve on the Audit Committee.

A majority of the members of the Audit Committee shall be "resident  Canadians",
as contemplated by the BUSINESS CORPORATIONS ACT (Ontario).

                                RESPONSIBILITIES

INDEPENDENT AUDITORS

The Audit Committee shall:


------------------------------
1     A company is a subsidiary of another company if it is controlled, directly
or  indirectly,  by that other company  (through one or more  intermediaries  or
otherwise).

2     An  "affiliate"  of a person  is a person  that,  directly  or  indirectly
through one or more intermediaries,  controls,  or is controlled by, or is under
common control with the first person.


                                                         AS IN EFFECT MARCH 2005


<PAGE>

                                      - 3 -

   o  Recommend the  appointment and the  compensation  of, and, if appropriate,
      terminate the independent  auditor,  subject to such board and shareholder
      approval as is required under the BUSINESS CORPORATIONS ACT.

   o  Obtain  confirmation  from the  independent  auditor that it ultimately is
      accountable,  and will report  directly,  to the Audit  Committee  and the
      Board of Directors of the Company.

   o  Oversee the  independent  auditor and the resolution of any  disagreements
      between  management  and  the  independent   auditor  regarding  financial
      reporting.

   o  Adopt policies and procedures for the pre-approval of the retention of the
      independent  auditor by the  Company and any of its  subsidiaries  for all
      audit and permitted  non-audit  services  (subject to any  restrictions on
      such services  imposed by the Toronto Stock  Exchange,  the New York Stock
      Exchange  or  applicable   legislation),   including  procedures  for  the
      delegation of authority to provide such approval to one or more members of
      the Audit Committee.

   o  At least annually, review the qualifications, performance and independence
      of the independent auditor. In doing so, the Audit Committee should, among
      other things, undertake the measures set forth in Appendix A.

THE AUDIT PROCESS, FINANCIAL STATEMENTS AND RELATED DISCLOSURE

The Audit Committee shall, as it determines to be appropriate:

   o  Meet with management and/or the independent auditor to review and discuss,

      -  the planning and staffing of the audit by the independent auditor,

      -  before  public  disclosure,  the  Company's  annual  audited  financial
         statements   and   quarterly   financial   statements,   the  Company's
         accompanying  disclosure of  Management's  Discussion  and Analysis and
         earnings  press  releases  and  make  recommendations  to the  Board of
         Directors as to their approval and  dissemination  of those  statements
         and disclosure,

      -  financial  information and earnings  guidance  provided to analysts and
         rating  agencies:  this review need not be done on a case by case basis
         but may be done  generally  (consisting of a discussion of the types of
         information disclosed and the types of presentations made) and need not
         take place in advance of the disclosure,

      -  any  significant  financial  reporting  issues  and  judgments  made in
         connection with the preparation of the Company's financial  statements,
         including any  significant  changes in the selection or  application of
         accounting  principles,  any major issues regarding auditing principles
         and  practices,  and the  adequacy  of  internal  controls  that  could
         significantly affect the Company's financial statements,

      -  all critical accounting policies and practices used,

      -  all alternative  treatments of financial  information  within GAAP that
         have been


                                                         AS IN EFFECT MARCH 2005


<PAGE>

                                      - 4 -

         discussed with management, ramifications of the use of such alternative
         disclosures  and  treatments,   and  the  treatment  preferred  by  the
         independent auditor,

      -  the use of "pro forma" or "adjusted" non-GAAP information,

      -  the effect of new regulatory and accounting pronouncements,

      -  the effect of any material off-balance sheet structures,  transactions,
         arrangements and obligations (contingent or otherwise) on the Company's
         financial statements,

      -  any  disclosures  concerning any weaknesses or any  deficiencies in the
         design or operation of internal controls or disclosure controls made to
         the Audit  Committee in connection with  certification  of forms by the
         Chief Executive  Officer and/or the Chief Financial  Officer for filing
         with applicable securities regulators,

      -  the  adequacy  of  the  Company's  internal   accounting  controls  and
         management   information  systems  and  its  financial,   auditing  and
         accounting  organizations and personnel  (including any fraud involving
         an  individual  with  a  significant  role  in  internal   controls  or
         management  information systems) and any special steps adopted in light
         of any material control deficiencies, and

      -  the establishment, and periodic review, of procedures for the review of
         disclosures  of  financial  information  extracted  or derived from the
         Company's financial statements.

   o  Review with management, the Company's guidelines and policies with respect
      to risk  assessment and the Company's  major  financial risk exposures and
      the steps management has taken to monitor and control such exposures.

   o  Review with the independent auditor,

      -  the quality, as well as the acceptability of the accounting  principles
         that have been applied,

      -  any  problems  or  difficulties   the  independent   auditor  may  have
         encountered  during the provision of its audit services,  including any
         restrictions  on  the  scope  of  activities  or  access  to  requested
         information  and any significant  disagreements  with  management,  any
         management letter provided by the independent auditor or other material
         communication  (including any schedules of unadjusted  differences)  to
         management and the Company's  response to that letter or communication,
         and

      -  any  changes  to the  Company's  significant  auditing  and  accounting
         principles and practices suggested by the independent auditor, internal
         auditor or other members of management.


                                                         AS IN EFFECT MARCH 2005


<PAGE>

                                      - 5 -

INTERNAL AUDIT FUNCTION

The Audit Committee shall, as it determines appropriate:

   o  Review the experience and qualifications, and consider the appointment and
      replacement by management, of the senior internal auditing personnel.

   o  Review the scope of internal audit work plans for the year.

   o  Review the  significant  reports to  management  prepared by the  internal
      auditors and management's  responses,  including a summary report of major
      findings by the internal auditors (including an explanation of the factors
      considered in determining the audit scope), major risk factors, a list and
      the  circumstances  of any occurrences of fraud that have been identified,
      and confirmation that no limitations have been placed on the scope for, or
      nature of, the internal audit.

   o  Discuss with the independent auditors the internal audit function,

   o  Discuss with the internal  auditor the adequacy of the Company's  internal
      accounting   controls  and  its   financial,   auditing   and   accounting
      organizations and personnel.

COMPLIANCE

The Audit Committee shall, as it determines appropriate:

   o  Obtain reports from management and the Company's senior internal  auditing
      personnel that the Company's subsidiary/foreign affiliated entities are in
      conformity with applicable  legal  requirements  and the Company's Code of
      Business  Conduct  and  Ethics   including   disclosures  of  insider  and
      affiliated party transactions.

   o  Review with management and the independent auditor any correspondence with
      regulators  or  governmental  agencies  and  any  employee  complaints  or
      published  reports,  which raise material  issues  regarding the Company's
      financial statements or accounting policies.

   o  Advise the Board of Directors of the Company with respect to the Company's
      policies and procedures  regarding  compliance  with  applicable  laws and
      regulations and with the Company's Code of Business Conduct and Ethics.

   o  Review with the  Company's  General  Counsel legal matters that may have a
      material  impact on the financial  statements,  the  Company's  compliance
      policies and any material reports or inquiries received from regulators or
      governmental agencies.

   o  Establish procedures for,

      -  the  receipt,   retention  and   treatment  of   complaints   regarding
         accounting, internal accounting controls or auditing matters, and


                                                         AS IN EFFECT MARCH 2005


<PAGE>

                                      - 6 -

      -  the confidential, anonymous submission by employees of the Company with
         concerns regarding any accounting or auditing matters.

DELEGATION

To avoid any confusion,  the Audit Committee  responsibilities  identified above
are the sole responsibility of the Audit Committee and may not be allocated to a
different committee.

                                    MEETINGS

The  Audit  Committee  shall  meet at least  quarterly  and more  frequently  as
circumstances require. All members of the Audit Committee should strive to be at
all meetings.  The Audit Committee  shall meet  separately,  periodically,  with
management,  the internal auditors and the independent  auditors and may request
any  member of the  Company's  Management  Committee  or the  Company's  outside
counsel or independent  auditor to attend  meetings of the Committee or with any
members of, or advisors to, the  Committee.  The Audit  Committee  also may meet
with the investment bankers, financial analysts and rating agencies that provide
services to, or follow, the Company.

The Audit  Committee may form and delegate  authority to individual  members and
subcommittees  of the Audit  Committee  where  the  Committee  determines  it is
appropriate to do so.

                               INDEPENDENT ADVICE

In  discharging  its mandate,  the Audit  Committee  shall have the authority to
retain (and  authorize  the  payment by the Company of) and receive  advice from
special legal, accounting or other advisors as the Audit Committee determines to
be necessary to permit it to carry out its duties.

                                ANNUAL EVALUATION

At least annually,  the Audit  Committee  shall, in a manner it determines to be
appropriate:

   o  Conduct a review and  evaluation of the  performance  of the Committee and
      its members,  including the  compliance of the Audit  Committee  with this
      Charter.

   o  Review and assess the  adequacy of its Charter and  recommend to the Board
      of  Directors  any   improvements  to  this  Charter  that  the  Committee
      determines to be appropriate.


                                                         AS IN EFFECT MARCH 2005


<PAGE>


                                   APPENDIX A
                                   ----------

   o  Review the  experience  and  qualifications  of the senior  members of the
      independent auditor's team.

   o  Discuss  with  the  independent   auditor  its  internal   quality-control
      procedures.

   o  Confirm  with  the  independent  auditor  that  it is in  compliance  with
      applicable  legal,  regulatory  and  professional  standards  relating  to
      auditor independence.

   o  Review  and  approve  clear  policies  for the  hiring by the  Company  of
      employees or former employees of the independent auditor.

   o  Review  periodic  reports  from  the  independent  auditor  regarding  its
      independence  and consider  whether  there are any  non-audit  services or
      relationships  that may affect the  objectivity  and  independence  of the
      independent  auditor and, if so,  recommend that the Board of Directors of
      the Company take appropriate  action to satisfy itself of the independence
      of the independent auditor.

   o  Obtain and review such  report(s) from the  independent  auditor as may be
      required by applicable legal and regulatory requirements.


                                                         AS IN EFFECT MARCH 2005