Claridge Public LTD — Share Issue/Capital Change 2014

Nov 19, 2014

Claridge Public Limited

Office of the Secretary P.O. Box 50012, 3600 Limassol, Cyprus Tel.:00357 25871600, Fax: 00357 25362001 e-mail: pmc@pkdlaw.com

Interim Management Statement

Claridge Public Limited ("the Company") presents its Group Interim Management Statement for the period from 1 July 2014 to 18 November 2014, which has been prepared in accordance with the provisions of article 11 of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007 (N.190 (I) / 2007).

Nature of the activities of the Group

The principal activities of the Group have not changed compared to the year ended 31 December 2013 and remain the hotel services as well as the sale of immovable property through its wholly owned subsidiary company Amathus Vacation Ownership Ltd.

General review of the financial position of the hotel sector

The sales of Amathus Beach Hotel Paphos for the period from 1 July 2014 until 30 September 2014 amounted to €2.874.691 compared to €4.532.542 of the corresponding period of last year, showing a decrease of $E1.657.851$ . The drop in sales was mainly due to the decrease of the hotel occupancy by 16,65% compared to the corresponding period of last year, which was the result of the announcement for the closure of the hotel on 24 September 2014 for renovations and its nonpromotion by the tour operators.

The profits from operations for the reporting period decreased by approximately $$840.000$ compared to the corresponding period of last year. This is due to the decrease in sales.

General review of the financial position of the real estate development sector

As regards the fully owned subsidiary company of the Group, Amathus Vacation Ownership Ltd, there has been no sale during the reporting period, while in the corresponding period of last year, one sale was realized for the amount of €365.000.

Main risks and uncertainties

The main risks and uncertainties that the Group faces have not changed from those described in the Company's Annual Report for 2013. In addition, there is an uncertainty regarding the success of the conversion of the Company's hotel from a 5star hotel, member of the Leading Hotels of the World into a thematic hotel, changing at the same time the name of the hotel which had been established and recognized in the market. Also there is a risk that the planned investments for renovation (estimated at $\epsilon$ 13 million) may not achieve the improvement in the financial performance of the hotel to the expected degree.

Claridge Public Limited

Office of the Secretary P.O. Box 50012, 3600 Limassol, Cyprus Tel.:00357 25871600, Fax: 00357 25362001 e-mail: pmc@pkdlaw.com

Significant events and transactions

On the 15^th of July 2014, the District Court of Limassol confirmed the reduction of the share capital of the Company which was decided by a special resolution at the Extraordinary General Meeting of the Company held on the 4th of June 2014. The Special Resolution provided for the reduction of the nominal value of the share from 34 cents to 12 cents by writing off accumulated losses and/or loss of capital amounting to €25.108.812 so that the issued share capital of the Company, following the reduction of the nominal value of its share, shall amount to €12.979.554 divided into 108.162.950 ordinary fully paid up shares with a nominal value of 12 cents each. The amount of $£25.108.812$ consists of the setting off the share premium reserve account of €1.311.963 with the accumulated losses and the reduction of the nominal value of the share by writing off losses amounting to €23.795.849. The Department of the Registrar of Companies has not issued the certificate of capital reduction yet, however this is expected to take place soon. The delay for the non-issuance of the said certificate is attributed to the non- updating of the Company's file, which has recently been fully completed.

On the 28^th of August 2014 the Board of Directors at a meeting decided to increase the share capital through the issue of 108.162.950 Rights to the existing shareholders. The main terms of the issue are as follows:

• i. At the stage of issuing and granting the Rights, for each existing share one Right will be issued. Therefore, a total of 108.162.950 Rights will be issued and allotted free pro rata to the existing shareholders of the Company who will be registered in the Central Depository/Registry of the CSE.
• ii. During the stage of exercising the Rights, for every ten (10) Rights exercised for a total price of $\epsilon$ 1,32 (one euro and thirty-two cents), eleven (11) new fully paid shares of the Company of nominal value $\epsilon$ 0,12 (twelve cents) each will be issued.
• iii. The exercise price of one (1) new share was fixed at $\epsilon$ 0,12, as much as the nominal value of the share.

On the 24^th of September 2014, Amathus Beach Hotel Paphos terminated its operation to undergo extensive renovations in order to be converted into an Olympic Lagoon hotel. The hotel is expected to re-open its doors as Olympic Lagoon Resort Paphos in June 2015. The cost of the renovations is estimated to be around $E13$ million. The funding of the project will come from advances from tour operators and the increase of the share capital of the Company.

During the reporting period there were no other significant events and transactions other than the ordinary activities which have an impact on the financial position of the Group.

Claridge Public Limited

Office of the Secretary P.O. Box 50012, 3600 Limassol, Cyprus Tel.:00357 25871600, Fax: 00357 25362001 e-mail: pmc@pkdlaw.com

It is noted that during the above period there were no profits or losses from nonrecurring operations beyond the main activities of the Group.

Prospects

The Management taking into consideration all the above and the data up to now estimate that the expected financial results of the Group shall continue to be loss making.

Limassol, 19 November 2014