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Important Announcement from the Arabian Horse Registry of America and the International Arabian Horse Association

The mediation representatives from the Arabian Horse Registry of America ("AHRA") and the International Arabian Horse Association ("IAHA") are pleased to announce that a tentative agreement has been reached. IAHA and AHRA will combine by merger into a new non-profit corporation which will serve as a unified organization to lead, promote and benefit the Arabian horse community. Subject to approval by both organizations, the merger will be effective as of January 1, 2003. The tentative agreement will be submitted for approval to the AHRA Board of Directors prior to IAHA's November meeting and the IAHA Annual Convention in November.

The new corporation will perform all functions previously performed by IAHA and AHRA as well as engage in new additional activities to lead, promote and benefit the Arabian horse community. The synergies resulting from this merger will provide resources that will allow for market development and better financial health for the new organization.

The highlights of this tentative agreement include:

The new corporation's Board of Directors will total twenty-nine (29) members consisting of eighteen (18) regional directors, four (4) at-large directors (initially comprised of persons appointed by AHRA), the President, the 1st Vice President, two (2) At-Large Vice Presidents to represent the interests of owners and breeders of purebred Arabian horses, the Secretary, the Treasurer and the Immediate Past President.

Regional representation and the convention delegate process will remain in place.

A Purebred Trust will be formed from certain existing assets of AHRA and will be funded prospectively by a portion of registration revenue and investment income. Income from the Trust will be used for the promotion of the Arabian breed.

The Purebred Trust trustees will be self-perpetuating and will appoint successors to positions initially selected by the AHRA Board of Directors.

A Registry Commission will be formed and will be responsible for all rules relating to the registration of purebred Arabian and Half-Arabian/Anglo-Arabian horses and make all decisions regarding registration issues.

A Market Development and Promotion Committee will also be formed to oversee the marketing and promotional activities of the new corporation.

The new corporation will immediately undertake a study to review the governance structure of the new organization and to create a strategic plan.

More details will be available as merger documents are finalized. The IAHA deadline of August 21 for submission of resolutions will be met. Merger documents will be made available no later than mid-October.

IAHA® is a 28,000 member breed association that registers Half-Arabian and Anglo-Arabian horses, administers more than $4 million in prize money annually, produces national events, maintains official event records, recognizes more than 400 Arabian horse shows and distance rides and provides activities and programs that promote Arabian horse breeding and ownership. For information about Arabian, Half-Arabian and Anglo-Arabian horses, call 303-696-4500, e-mail iaha@iaha.com or visit www.iaha.com.


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