SORTED GROUP HOLDINGS PLC — M&A Activity 2012

May 16, 2012

Date of Announcement: 16th May 2012 Reference: 31/2012

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.

On 7 September 2011, the Company had announced that it had acquired 50% of Buttigieg Holdings Limited, this in exchange for 1,070,960, ordinary (€ 1) shares issued in the Company.

Through its wholly owned subsidiary The Coffee Company (Malta) Ltd, Buttigieg Holdings Limited has today signed a Franchise Agreement with Costa International Limited granting it the exclusive development and operating rights for Costa Coffee Shops in Malta.

The Coffee Company (Malta) Ltd intends to convert three existing outlets at Malta International Airport (MIA) into branded COSTA coffee shops during 2012. These outlets have contracts in place at MIA up to the year 2022. Additional outlets are expected to follow at a later date in key locations on the Island.

Costa Coffee was founded in 1971 by Bruno and Sergio Costa and taken over by Whitbread plc in 1995. Whitbread plc is listed on the FTSE 100 UK stock exchange and is today valued at over GBP 3 billion. Costa Coffee operates in 25 markets, in addition to the UK, with over 2,000 shops in operation and, in its 2011/12 financial year, had revenues of over GBP 500 million.

Signed:

_____________________

Kenneth Abela Company Secretary