IHI Increases Capital to over Half a Billion Euro.

FLORIANA, Malta -- International Hotel Investments (IHI) plc of Malta is increasing its issued capital to over Euro 500,000,000, welcoming Istithmar Hotels of Dubai as a new strategic investor and partner.

Istithmar Hotels has subscribed to Euro 178,000,000 in new IHI shares, to be allocated entirely to the further growth of the Company through acquisitions of five-star hotels. Concurrent to the issue of the new shares, IHI is also acquiring the Corinthia Bab Africa Hotel & Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague, from the Corinthia Group of Malta, principally in return for new shares issued to Corinthia in IHI.

Istithmar Hotels is part of Istithmar, a leading private equity and alternative investment company based in Dubai with global investment interests across various sectors, including hospitality, where Istithmar Hotels is fast establishing itself as a major investor in high-profile properties across the world. Istithmar is 100 per cent owned by Dubai World which in turn is wholly owned by the Government of Dubai.

Mr Alfred Pisani, Chairman of IHI, said "Welcoming Istithmar Hotels as our partners with a substantial shareholding interest in IHI is a momentous occasion for our company. Together, we will grow this venture into a major hotel company".

Mr Khaled Al Kamda, Vice Chairman of Istithmar, said: "The investment by Istithmar Hotels in IHI is in line with the Istithmar's strategy of taking major strategic stakes in high quality companies with strong management teams and good growth potential.

Mr Joe Sita, CEO of Istithmar Hotels, said: "We welcome this opportunity to partner and support a company which has a proven track record in acquiring and developing hotels in various countries, including some of the fastest growing cities in Europe".

The Directors of IHI also announced their intention of obtaining a second listing of the Company on an international stock exchange within 12 months from closing.

IHI, founded by the Corinthia Group, has acquired and developed five-star hotels in Malta, St Petersburg, Budapest and Lisbon, which are being added the hotels in Tripoli and Prague. IHI recently increased its shareholding in CHI Limited, a hotel management company, up to 70%, with the remaining 30% acquired by Wyndham Hotels Group of the United States.