MIDI Plc

Legal Proceedings Report • Mar 30, 2017

Company Announcement

The following is a Company Announcement issued by MIDI plc ("MIDI" or "the Company") pursuant to the Malta Financial Services Authority Listing Rules.

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Manoel Island

In light of recentspeculation in the media, MIDI plc believes that it is important to update its investors and stakeholders on the history and current status of the Manoel Island development:

• a) The concession to develop Manoel Island, together with Tigne Point, formed part of a competitive tender process that was initiated in 1993 by the government of the day. The tender was prescrip‐ tive in nature with respect to the development volumes and the overall segregation of these vol‐ umes into residential and commercial elements. As such, the tender also included the request for a Casino element (the sustainability of which is currently under consideration), to which MIDI plc responded. MIDI plc was ultimately successful in securing the concession and the relevant mutu‐ ally binding Deed of Emphyteusis (the "Deed") was signed in 2000 after being approved unani‐ mously by both parties in Parliament.
• b) MIDI is governed by the aforementioned Deed and it has always acted in compliance within the parameters of the Deed. The stipulated price payable for the concession is split between premia payable to the Government of Malta (€60 million), infrastructural and restoration obligations (€33 million) and a ground rent of €181 million payable over the 99‐year term of the lease. All premia due to Government under the deed have always been paid.
• c) As communicated in previous company announcements, MIDI has over the last 18 months en‐ gaged international financial advisors Strategy& on a thorough market analysis and business plan for the MI project. This was immediately followed by the engagement of the world renowned architectural firm, Foster+Partners, for the creation of a conceptual master plan in line with the obligations emanating from the Deed. The latest engagement of international investment bank JefferiesInternational Limited to coordinate the strategic partnersearch wasthe finalstage before the company proceeds with the development in line with the deadlines stipulated in the deed for substantial completion of the project by 2023.
• d) In the meantime, the Company entered into consultative discussions and presentations with stakeholders, including various NGOs and the Gzira Local Council, in order to receive constructive feedback on the project.
• e) MIDI remains fully committed to fulfilling the obligations arising from the Deed. MIDI is also com‐ mitted to maintaining a constructive dialogue with the various stakeholders of the project and refine its current proposals in line with these discussions.

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Graham A Fairclough Company Secretary

30th March 2017