http://biz.yahoo.com/prnews/991228/ca_ambassa_1.html

Tuesday December 28, 8:09 pm Eastern Time

Company Press Release

SOURCE: Ambassadors International, Inc. Ambassadors Implements Restructuring Plan

SPOKANE, Wash., Dec. 28 /PRNewswire/ -- Ambassadors International, Inc. (Nasdaq: AMIE - news) today announced a restructuring plan for its Performance Group, which provides a range of travel-related services for corporate clients, including incentive programs, meeting management and convention services. As a result, the Company anticipates it will incur approximately $8.0 to $10.0 million (pre-tax) in restructuring and goodwill impairment charges in the fourth quarter of 1999. The Company anticipates recording approximately $2 million less in income taxes for the fiscal year 1999 due to the decrease in taxable income.

The current restructuring will eliminate redundancies and inefficiencies and will result in new synergies by bringing management and operations together in the most advantageous locations. These actions will require the Company to write down goodwill, which was associated with previous acquisitions by the Performance Group. The write-down of goodwill, a non-cash transaction, accounts for approximately 80% of the anticipated restructuring charge. The restructuring plan is expected to be completed by the end of February 2000.

The plan involves closing the Boston, MA, Minneapolis, MN and the Westlake Village, CA offices and terminating employment of approximately thirty percent of the Performance Group work force. The closure of these offices is directly related to (i) the Company's decision to consolidate the Convention services operation in Atlanta, GA with the related accounting functions being transferred to Newport Beach, CA, (ii) the exiting from the meetings and incentive merchandising business and (iii) the elimination of redundant administrative and operational functions.

John Ueberroth, CEO and President of Ambassadors International, stated, ``Everyone involved with Ambassadors has been disappointed by our performance this year. We believe that this restructuring will better position us operationally, financially and strategically to meet our objectives in 2000.''

Ambassadors International, Inc. organizes, markets and operates international educational travel programs on a worldwide basis for students and adults. The Company also develops, markets and manages performance improvement programs, provides business meeting management services, and provides comprehensive housing reservation, registration and travel services for meetings, conventions, expositions and trade shows. The Company is headquartered in Spokane, Washington, and has offices in Newport Beach, CA, San Francisco, CA, Atlanta, GA, Winnebago, IL, Prairie Village, MO, and Alexandria, VA.

This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included per the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation to provide public updates or revisions to any forward-looking statements found herein, to reflect any changes in Company expectations or any change in events. Although Ambassadors International believes the expectations reflected in such forward-looking statements are based on reasonable assumptions. It can give no assurance that its expectations are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. From time to time, these risks are discussed in the Company's filings with the Securities and Exchange Commission.

CONTACT: John Ueberroth, 949-759-5900, for Ambassadors International, Inc.

SOURCE: Ambassadors International, Inc.

-- Hokie (nn@va.com), December 28, 1999