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Kerzner Announces Settlement With Kersaf.

Business Editors

PARADISE ISLAND, The Bahamas--(BUSINESS WIRE)--Nov. 6, 2002

Kerzner International Limited (NYSE:KZL) today announced that is has reached settlement on a number of outstanding matters with Kersaf Investments Limited, one of its existing shareholders. As previously announced in July 2001, the Company and Kersaf had agreed to restructure certain agreements which included, among other things, an obligation for Kersaf to sell at least 2,000,000 of the Company's shares in a registered public offering, certain non-compete agreements, the continuation of an obligation of Kersaf to pay to Kerzner an annual payment of approximately $3 million (the "Contribution Payment"), and an agreement pursuant to which Kerzner was granted an interest in a proposed project in Port Ghalib, Egypt (the "Egypt Project"). In October 2001, the Company filed a lawsuit against Kersaf and certain related entities in New York alleging, among other things, that Kersaf had breached its non-compete obligation. Without admitting or denying any of the Company's allegations, Kersaf and the Company have reached a Settlement Agreement that resolves all of these outstanding matters.

 According to the Settlement Agreement:

1. The date by which Kersaf is obligated to sell at least
 2,000,000 shares of the Company in a registered public
 offering has been extended from October 31, 2002 to February
 28, 2003.

2. Kerzner has agreed to terminate all existing lawsuits related
 to Kersaf and release all parties from any claims related
 thereto.

3. Kersaf's obligation to make the Contribution Payment shall be
 terminated effective December 1, 2002.

4. Kerzner shall no longer have any interest in the Egypt
 Project.

5. Kersaf shall pay to Kerzner $32 million plus interest from
 December 1, 2002, on the earlier of the date Kersaf completes
 the sale of the Company's shares and December 31, 2003.


In addition, Kersaf has made a public announcement in South Africa regarding its intention to sell its shares in the Company, the relevant portion of which is below.

About the Company

Kerzner International Limited is a leading developer and operator of premier casinos, resorts and luxury hotels. The Company's flagship destination is Atlantis, a 2,317-room, ocean-themed resort located on Paradise Island, The Bahamas. Atlantis is a unique destination casino resort featuring three interconnected hotel towers built around a 7-acre lagoon and a 34-acre marine environment that includes the world's largest open-air marine habitat. The Company also developed and receives certain revenues from Mohegan Sun in Uncasville, Connecticut. Following the completion of a $1 billion expansion, the Native American-themed Mohegan Sun has become one of the premier casino resort destinations in the United States. In the luxury resort hotel business, the Company operates nine luxury resorts in The Bahamas, Mauritius, Dubai, the Maldives and Mexico, and has entered into a management and development agreement for a tenth property in the Maldives. For more information concerning the Company and its operating subsidiaries visit http://www.kerzner.com.

This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, which are described in the Company's public filings with the Securities Exchange Commission.

Inquiries should be directed to John Allison, Executive Vice President - Chief Financial Officer of Kerzner International Limited at +1.242.363.6016.


 KERSAF INVESTMENTS LIMITED
 EXCERPTS OF ANNOUNCEMENT IN SOUTH AFRICA
 NOVEMBER 6, 2002


2. THE PROPOSED DISPOSAL

 2.1 Introduction

 In terms of restructuring agreements concluded
 between the Group and KZL on 3 July 2001 ("the
 restructuring agreements"), the Group undertook to
 sell 2,000,000 KZL (formerly Sun International
 Hotels Limited) shares by 30 June 2002 ("the
 compulsory sale"). The compulsory sale date was
 initially extended to 30 October 2002 and a further
 extension to 28 February 2003 has now been agreed.

 The Group now proposes to sell up to a maximum of
 4,025,000 KZL shares indirectly owned by Kersaf and
 Kersaf intends convening a general meeting of its
 shareholders for the purpose of considering the
 ordinary resolution necessary to approve the
 proposed disposal.

2.2 Information on KZL

 KZL is a leading developer and operator of premier
 casinos, resorts and luxury hotels and is listed on
 the New York Stock Exchange ("the NYSE"). KZL's
 flagship destination is Atlantis, a 2,317 room,
 ocean-themed resort located on Paradise Island, The
 Bahamas. Atlantis is a unique destination casino
 resort featuring three interconnected hotel towers
 built around a 7-acre lagoon and a 34-acre marine
 environment that includes the world's largest
 open-air marine habitat. KZL also developed the
 Mohegan Sun in Uncasville, Connecticut from which it
 receives certain revenues. Following the completion
 of a US$1 billion expansion, the Native
 American-themed Mohegan Sun has become one of the
 premier casino resort destinations in the United
 States of America ("United States"). In the luxury
 resort hotel business, KZL operates nine luxury
 resorts in the Bahamas, Mauritius, Dubai, the
 Maldives and Mexico, and has entered into a
 management and development agreement for a tenth
 property in the Maldives.

 The closing market price of KZL shares on 5 November
 2002 was US$21,75 per share (approximately R215 per
 KZL share). As at 5 November 2002, Kersaf
 effectively held 19.16% (5,230,677 shares) in KZL,
 at which date the value of its effective
 shareholding amounted to US$ 113,8 million
 (approximately R1 126 million).

2.3 Rationale for the proposed disposal

 2.3.1 The compulsory sale

 The Group is obliged, in terms of the compulsory
 sale, to sell at least 2,000,000 shares in KZL in
 terms of the public offering in the United States to
 be arranged by KZL on its behalf ("the public
 offering"). The shares will be registered for sale
 in a public offering with the United States
 Securities and Exchange Commission ("the SEC").

 2.3.2 Rationale for increasing the public offering

 Investment bankers and potential underwriters to the
 proposed public offering in the United States have
 indicated that it would be advantageous to the Group
 to make available a higher number of KZL shares in
 the public offering than was envisaged in the
 compulsory sale. The higher number of shares should
 increase the interest of potential investors by
 improving liquidity in KZL shares on the NYSE and by
 removing a greater proportion of the potential
 overhang resulting from the Group's stated intention
 of disposing of its holdings in KZL over time.
 Consequently, Kersaf proposes to increase the size
 of the public offering to include the sale of up to
 a maximum of 4,025,000 of Kersaf's indirectly held
 KZL shares.

2.4 Proceeds from the proposed disposal

 US$32 million of the proceeds from the proposed
 disposal will be utilised to discharge the Group's
 obligations in terms of the KZL agreement. The
 balance will be utilised to settle certain other
 liabilities of the Group, to partly fund the SIML
 acquisition and to distribute excess funds to
 Kersaf. The Board of Kersaf will consider the
 distribution of excess cash to Kersaf shareholders.
 Such distribution will to a large extent be
 determined by the relative success of the public
 offering.

2.5 Number of KZL shares

 The number of KZL shares to be disposed of by the
 Group will, depending on the interest shown in the
 shares by potential investors, be up to a maximum of
 4,025,000 KZL shares which includes 525,000 KZL
 shares that may be required to be sold in the event
 that the underwriters exercise their overallotment
 option. The underwriters' overallotment option is
 the mechanism that allows the underwriters of the
 public offering to provide price support for the
 shares. Typically, an overallotment option gives the
 underwriters the right to purchase up to an
 additional 15% of the shares to be sold to buyers in
 the public offering. The underwriters fill the
 additional allocation in the event that the price
 holds at or above the public sale price after
 pricing and allocation or alternatively is filled by
 shares acquired by the underwriters in the market in
 the event that the share price weakens after pricing
 and allocation.

 The sale of the increased number of KZL shares will
 discharge the Group's obligation in terms of the
 compulsory sale.

2.6 Kersaf shareholders approval

 Although the compulsory sale in itself does not
 require approval from Kersaf shareholders, the sale
 of up to a maximum of 4,025,000 KZL shares will
 require the approval of Kersaf's shareholders in
 terms of the Listings Requirements of the JSE
 Securities Exchange South Africa.

 The pricing of the proposed disposal cannot be
 determined at this stage but will be determined
 after the shares have been registered with the SEC
 in discussion among the underwriters and Kersaf.
 Kersaf may withdraw from the proposed disposal if
 the public offering does not realise sufficient
 interest or realistic pricing. The Board of Kersaf
 will therefore request Kersaf shareholders to
 approve the proposed disposal and give the Board of
 Kersaf the authority to dispose of as many KZL
 shares as it deems appropriate, but limited to a
 maximum of 4,025,000, at the most favourable
 possible prices. In this regard the Board of Kersaf
 intends calling a general meeting of Kersaf
 shareholders to obtain the requisite approvals.

2.8 United States Securities Laws Legend

 This announcement and the information contained
 herein is not an offer of the KZL shares for sale in
 the United States, and the KZL shares may not be
 offered or sold in the United States absent
 registration with the SEC or an exemption from
 registration. Any public offering of the KZL shares
 to be made in the United States will be made by
 means of a prospectus that may be obtained from KZL
 or Kersaf and will contain detailed additional
 information about KZL and its management as well as
 financial statements.
COPYRIGHT 2002 Business Wire
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