Bermuda-based Orient-Express Hotels Ltd., which owns and operate 37 deluxe hotels, tourist trains and a river cruise ship in 14 countries yesterday said it plans to buy back up to 1 million of its Class A common shares in open market transactions.

Chairman James Sherwood also said he and the company president, Simon Sherwood, are making open market purchases for their own account additional to the shares which the company plans to buy back.

Mr. James B. Sherwood, Chairman, said that the company's board of directors feel the market may be overreacting to the dreadful terrorist acts of September 11.

He said that the immediate impact on tourism would be mainly felt by the US market where air travel is involved. He pointed out that two of the company's five North American hotels are drive-to and could benefit from the situation.

Mr. Sherwood said that travel by Europeans so far seems relatively unaffected by September 11 as terrorist acts by the IRA in the UK, the ETA in Spain and in the Balkan wars are routine to this group.

Mr. Sherwood stressed the company's liquidity was excellent and reduced interest rates and a weaker dollar should improve earnings.

Simon Sherwood, President, said that it was too soon to forecast the impact on 2001 earnings of the September 11th tragedy. The company had net income of $40 million in 2000 and had earlier predicted higher profits in 2001.