SORTED GROUP HOLDINGS PLC — Capital/Financing Update 2014

May 6, 2014

Date of Announcement: 6 May 2014 Reference: 54/2014

The following is a Company Announcement issued by Island Hotels Group Holdings p.l.c. (the Company) pursuant to the Malta Financial Services Authority Listing Rules.

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Following regulatory approvals received today, the Company announces that it will be issuing 350,000 6% Bonds 2024 of a nominal value of €100 per Bond issued at par for an aggregate of €35,000,000 (the "New Bonds").

Up to an aggregate amount of €2,500,000 of the New Bonds shall first be allocated to those who are existing shareholders or Island Hotels Group employees as at close of business on the 9 May 2014. Following such allocations, any remaining New Bonds shall be allocated to applications submitted by the general public without priority or preference.

The Company has also entered into conditional private placement agreements with Curmi & Partners Ltd., Finance House, Princess Elizabeth Street, Ta' Xbiex XBX 1102, and Rizzo, Farrugia & Co (Stockbrokers) Ltd., Airways House, Third Floor, High Street, Sliema SLM 1549 respectively on 2 May 2014, whereby the Company allocated to Curmi & Partners Ltd. (€5,000,000) and Rizzo, Farrugia & Co (Stockbrokers) Ltd. (€5,000,000), an aggregate value of €10,000,000 of the New Bonds.

Full details of the issue of the New Bonds are included in the prospectus dated 6 May 2014 which will be available at the registered office of the Company and at authorised financial intermediaries from 12 May 2014.

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Signed:

_____________________

Kenneth Abela Company Secretary

Island Hotels Group Holdings p.l.c.

Registered Address: Radisson Blu Resort St. Julians, Louis V. Farrugia Street, St. George's Bay, St. Julians STJ 3391, Malta

Telephone: +356 2137 4894

Company Registration No.: C44855

Island Hotels Group Holdings p.l.c. is a public limited company registered in terms of the Companies Act (Cap.386 of the Laws of Malta) - 1 -