Offer by Vassallo Builders Group Limited of 8,817,300 Ordinary Shares with a nominal value of €1 each to Double You Limited and T Limited together with an Offer by Vassallo Builders Group Limited of 8,383,300 Ordinary Shares with a nominal value of €1 each to the General Public as well as an Offer by Vassallo Builders Group Limited and T.M.C. Limited of 140,000 6.5% Bonds 2017-19 with a nominal value of €100 each.

The Board of Directors of Island Hotels Group Holdings p.l.c. is pleased to announce the allotment policy to be applied to the applications received upon opening of subscription lists on Tuesday, 22nd September 2009 in respect of the above Offers.

Demand for both Bonds and Shares was in excess of the amounts on offer, and the Company was compelled to close subscription lists shortly after opening.

Allocation policy in respect of the Shares (ISIN: MT0000480104)

The Company received €6,089,900 in respect of applications at the pre-placement stage. In accordance with the Prospectus these applications had to be scaled down to €3,250,000. Of this maximum amount, €250,000 represented the maximum amount of applications available for subscription by Employees. All applications by Employees were allocated in full. The following allocation policy was adopted for the remaining balance: subscriptions up to €1 million were allocated in full, whilst 24.35% of subscriptions in excess of €1 million were allocated.

Furthermore, two applications of €1,100,000 each were received from Gary A. Neville and Ryan J. Giggs. In terms of clause 8.3.2 of the Combined Securities Note, these applications were allocated in full.

Moreover, applications received from the General Public amounted to €3,040,900. Since applications allocated at the pre-placement stage amounted to €5,450,000, the balance available to the General Public was €2,933,300. Hence, the Directors of the Company decided to adopt the following allocation policy:

•  Applications for Shares up to a nominal value of €200,000 were met in full;
•  Applications for an amount in excess of €200,000 will be allocated at the rate of 94.85% of the total amount applied for.

Allocation policy in respect of the Bonds (ISIN: MT0000481219)

The Company received 547 applications, totaling €5,469,900 from bondholders of the 6.5% CareMalta Finance plc 2010. This represents 61.8% of the outstanding CareMalta Bonds. These applications will be allocated in full.

Applications received from the General Public amounted to 1,819 with a value of €17,910,900. Since applications allocated to CareMalta Bondholders amounted to €5,469,900, the amount available to the General Public was €8,530,100. Hence, the Directors of the Company decided to adopt the following allocation policy:

•  Applications up to a nominal value of €5,000 were met in full;
•  Applications for an amount in excess of €5,000 will be allocated the first €5,000 and circa 14.50% of the balance applied for.

Interest on the Bonds will commence as at the date of listing on the Official List of the Malta Stock Exchange in terms of the combined securities note of the Prospectus dated 28th August 2009, and refunds of un-allocated monies will be paid by not later than Tuesday, 6th October 2009.

The Board of Directors of the Group once again thanks the investing public, institutional investors, financial intermediaries, banks and the whole Island Hotels Group team for their support.