Orascom Development Holding AG — M&A Activity 2010

Apr 29, 2010

News Details

Ad-hoc | 29 April 2010 07:01

Orascom Development acquires an 4.5% equity stake in Egyptian Resorts Company, and will develop 2.5 million m2 at Sahl Hasheesh resort

Orascom Development Holding AG / Alliance

29.04.2010 07:01

Dissemination of a Adhoc News, transmitted by
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The issuer is solely responsible for the content of this announcement.

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Press Release

Orascom Development acquires an 4.5% equity stake in Egyptian Resorts
Company, and will develop 2.5 million m2 at Sahl Hasheesh resort

Orascom Development announces the acquisition of an 4.5% equity stake in
Egyptian Resorts Company (ERC). Further, Orascom Development & Management
(a subsidiary of Orascom Development) will market, sell and manage the
development of the marina area and the surrounding real estate at Sahl
Hasheesh, a Red Sea resort owned by ERC. A corresponding agreement has been
signed.

Altdorf/Cairo, 29 April 2010 - Orascom Development Holding AG (Orascom
Development) has acquired 4.5% of Egyptian Resorts Company, a leading
Egyptian developer of communities listed on the EGX (EGTS.CA). On top of
that, Orascom Development announces that it's fully owned Egyptian
subsidiary, Orascom Development & Management (ODM) entered into a nine
years agreement with Egyptian Resorts Company to develop a total area of
2.5 million m2 in Sahl Hasheesh resort. The resort is located 18 km south
of Hurghada, covering a total area of 42 million m2 with a total current
offering of 1,577 hotel rooms and 679 real estate units managed by Premier
Le Reve, Premiere Romance and Pyramisa.

Under this agreement, ODM will act as the development manager and will also
market and sell the residential real estate units surrounding the marina
area, which is considered as one of the pillars of the Red Sea resort of
Sahl Hasheesh. In return, ODM will be receiving compensation via a revenue
and profit sharing scheme.

ODM has partnered with some of the most prominent investors to develop
several residential and touristic real estate projects in Egypt. In
addition to this agreement, ODM is currently developing two projects in
Egypt covering 7.4 million m2 namely Makadi (Hurghada), and Nasr Gardens.

ODM is extending its inherited expertise from its parent company (Orascom
Development) in master planning and developing fully fledged communities
offered to the international markets. ODM is currently considering entering
additional countries in the MENA region.

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Information and Explaination of the Issuer to this News:

About the Group

Orascom Development Holding AG (Orascom Development) is a leading developer
of fully integrated towns that include hotels, private villas and
apartments, leisure facilities such as golf courses, marinas and supporting
infrastructure. Orascom Development's diversified portfolio of projects is
spread over nine jurisdictions, with primary focus on touristic towns and
recently affordable housing.

Orascom Touristic Establishments (OTE) was established in1989 setting the
first step in building the Group's track record in the development of
integrated towns. After some name changes and reorganization, the main
business was held under Orascom Hotels & Development (OHD). Since the
settlement of the public exchange offer by Orascom Development for OHD,
Orascom Development became the new parent of OHD. Orascom Development has a
dual listing, with a primary listing on the main board of the SIX Swiss
Exchange (ISIN: CH0038285679) and a secondary listing on the EGX Egyptian
Exchange (ISIN: EGG676K1D011). In December 2009, the Group modified its
secondary listing on the EGX. While the Group's shares had previously been
trading on both the SIX and the EGX in Swiss Francs, Orascom Development at
that time procured the issuance and listing of Egyptian Depositary Receipts
(EDRs; each EDR representing 1/20 of the Group's share) which are currently
trading on the EGX in Egyptian pounds. The objective of this modification
is to improve trading and liquidity on the EGX.

Today, Orascom Development operates in nine jurisdictions (Egypt, Jordan,
UAE, Oman, Switzerland, Morocco, United Kingdom, Montenegro and Romania)
and is continuously seeking development opportunities in untapped yet
attractive locations all over the world. The Group has four existing
projects: El Gouna, the flagship project, a fully-fledged town on the Red
Sea coast (Egypt). Taba Heights, on the Sinai Peninsula (Egypt), is the
Group's second tourism destination following El Gouna's business model. The
Cove (Ras Al Khaimah, UAE) is the Group's first development experience
outside Egypt. Haram City, an integrated town dedicated to affordable
housing in Egypt, catering for the mass population.

For further information, please contact:
Orascom Development Holding AG
Mamdouh Abdel Wahab
Director Investor Relations
Tel: +41 79 846 55 60
+20 12 315 32 00
Email: ir@orascomdh.com

Swiss Media Office
Philippe Blangey
Tel: +41 41 874 17 11
Email: media@orascomdh.com

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29.04.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Orascom Development Holding AG
Gotthardstraße 12
6460 Altdorf
Schweiz
Phone: +41 41 874 17 11
Fax: +41 41 874 17 12
E-mail: ir@orascomdh.com
Internet: www.orascomdh.com
ISIN: CH0038285679
WKN: A0NJ37
Listed: Foreign Exchange(s) SIX

End of News DGAP News-Service

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