Orascom Development Holding AG — Regulatory Filings 2012

Feb 14, 2012

News Details

Ad-hoc | 14 February 2012 06:00

Orascom Development: Andermatt Swiss Alps Continues to Develop Dynamically in 2012

Orascom Development Holding AG / Key word(s): Interim Report

14.02.2012 06:00

Release of an ad hoc announcement pursuant to Art. 53 KR

Press Release

Orascom Development:
Andermatt Swiss Alps Continues to Develop Dynamically in 2012

Altdorf/Cairo, 14 February 2012 - Andermatt Swiss Alps AG, a wholly owned
subsidiary of Orascom Development Holding AG (Orascom Development),
provides an update on the Andermatt project. The development of the tourist
resort continues to progress in leaps and bounds. Further important
construction phases are planned for 2012 including the building of the
first villa, the first apartment building and the Golf Clubhouse as well as
final façade work on the 5-star hotel The Chedi Andermatt, completion of
the 18-hole golf course and further development of the new village centre
on the Podium. The projected investment for 2012 is CHF 115 million.
Considerable progress was also achieved in 2011, both in terms of
construction and investment, with sales and reservation contracts totalling
CHF 103 million.

2012 will be another important year for the development of the Andermatt
Swiss Alps tourist resort with work across its various construction sites
continuing. At the luxury hotel The Chedi Andermatt, finishing touches will
be made to both interior renderings as well as the external façade ahead of
its official opening in December 2013. At the 18-hole on-site golf course,
landscaping work and construction of the Golf Clubhouse will also take
place. The course will be finished in the second half of 2012 and
transferred to the operator, Andermatt Swiss Alps, where it will be used
for test rounds in 2013 before officially opening to the public in 2014.
General contractor work continues to include flood protection, roadworks,
water, heating and power supply infrastructure.

2012 will also see construction begin on the first apartment building on
the 46,000 m2 Podium site as well as the first chalet, both of which will
be completed by the end of 2013. In total, CHF 115 million of investment is
planned this year.

Managing Director of Andermatt Swiss Alps AG also explains that an
agreement on the development of the Andermatt-Sedrun Ski Arena is expected:
'The stakeholders, under the direction of the Uri government counsellor
Isidor Baumann, will come to an agreement about the final details of the
development plan this year, so that the new installations can go into
operation in winter 2013-2014.'

In the coming months, a group of representatives from the Andermatt
community and Andermatt Swiss Alps will analyse the infrastructure for the
facilities open to the public in the common areas, such as the public
transportation terminal, multi-purpose hall, and the sports centre.
Decisions on this infrastructure will be taken during the second half of
the year.

2011: Successful Construction Season and Satisfactory Sales

Construction work remained on schedule in 2011 with the completion of the
shell of the hotel The Chedi Andermatt achieved in November. Since then
interior work has been underway. The highlight is the new mock up hotel
room, which gives prospective buyers a first impression of the design,
style and amenities available to owners and guests in the new 5-star hotel.

Considerable progress was also achieved across other building sites.
One-third of the initial construction work on the car free village Podium
has been completed where most of the resort will be located. Meanwhile
excavation works at the 18-hole course were finished, a dozen water
features were positioned, the fairways and greens were seeded and the
irrigation system was installed. Ongoing work to general infrastructure was
also carried out.

Despite a robust Swiss franc, uncertain economic climate and discussions
surrounding the development of the ski area in Andermatt, sales and
reservation contracts amounting to CHF 103 million were finalised in 2011
(sales: CHF 72 million; reservations: CHF 31 million). A robust Swiss
franc, an uncertain economic situation, and the discussions surrounding the
development of the ski area all led to a degree of hesitation among our
customers. Gerhard Niesslein, CEO of Orascom Development Holding AG, is
nevertheless satisfied with the sales result: 'In the face of a difficult
situation, this is an exceptional result.' Until now, customers come mainly
from Switzerland (60%) followed by the Middle East (20%), Great Britain and
Germany (6% each), and the rest of Europe (8%). To date, new reservation
contracts amounting to CHF 22 million have been finalised in 2012.

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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 in 1989 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
Till Leisner
Head of Group Controlling & Investor Relations
Tel: +41 41 874 88 07
Mobile: +41 79 799 94 51
Email: ir@orascomdh.com

Orascom Development Holding AG
Mamdouh Abdel Wahab
Director Investor Relations
Tel: +20 122 315 32 00
Mobile: +41 79 846 55 60
Email: ir@orascomdh.com

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

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statements (or from past results). Factors such as (i) general economic
conditions and competitive factors, particularly in our key markets; (ii)
performance of financial markets; (iii) levels of interest rates and
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the policies of regulators may have a direct bearing on Orascom Development
Holding AG's results of operations and on whether Orascom Development
Holding AG will achieve its targets. Orascom Development Holding AG
undertakes no obligation to publicly update or revise any of these
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interim results are not necessarily indicative of the full-year results.
Persons requiring advice should consult an independent adviser.

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Language: English
Company: Orascom Development Holding AG
Gotthardstraße 12
6460 Altdorf
Switzerland
Phone: +41 41 874 17 11
Fax: +41 41 874 17 12
E-mail: ir@orascomdh.com
Internet: www.orascomdh.com
ISIN: CH0038285679
Swiss Security Number: A0NJ37
Listed: SIX

End of Announcement EquityStory News-Service

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