Cooperation Agreement in PRC

Crescent Hydropolis Resorts PLC
13 October 2005

                         CRESENT HYDROPOLIS RESORTS PLC

                                  ANNOUNCEMENT

The Directors of Crescent Hydropolis Resorts PLC (the Company) announce today
that the Company has entered into a Cooperation Agreement (the Agreement) with
the People's Government of Laoshan District, Qingdao, China (Laoshan) as the
first principal step in a development plan aimed at erecting Asia's first
deepwater Hydropolis Hotel and Resort (Hydropolis Qingdao) prior to the start of
the 2008 Beijing Summer Olympic Games.

The Laoshan District of Qingdao, a resort city centrally located between
Beijing, Shanghai and Seoul, South Korea on China's eastern coastline and
renowned for its green seas and picturesque scenery, will host the Sailing
Regattas at the Summer Olympics.

Hydropolis Qingdao will feature a Hydropalace(TM) and Landstation gateway.
Hydroyachts(TM) will connect the two structures by ferrying guests and visitors
from the Landstation's onshore piers to the underwater Hydropalace.  Hydropolis
Qingdao's design plan as conceived by Joachim Hauser, chief architect and the
Company's Executive Chairman, calls for 200 ultra-luxury suites, the world's
largest underwater ballroom, an oceanic museum, multiple conference and meeting
rooms, underwater restaurants, a revolving Sea View restaurant with a visitors
viewing platform above the Hydropalace and bar/nightclub facilities.

The Agreement calls for Laoshan to assist the Company in locating a suitable
marine site for the Hydropalace, and the corresponding location onshore for
erecting the Landstation.  The Agreement further provides that upon approval of
a suitable location for Hydropolis Qingdao by local and provincial government
authorities, the offshore marine location and land site will be contractually
offered to the Company and its wholly owned subsidiary companies (in formation,
the Subsidiaries) on a long-term lease basis (the Land Lease).  Management of
the Company have viewed locations along the Laoshan District's coast and have
narrowed the search to two acceptable locations.

The Agreement calls for the Company to complete its feasibility study for
Hydropolis Qingdao within three (3) months of the date of this announcement,
including a specific timetable that allows for the commencement of hotel
operations prior to the Opening Ceremony of the 2008 Summer Olympic Games.

SIBC GmbH, formerly Siemens Industrial Building Consultants and now a wholly
owned subsidiary of Turner & Townsend, and Siemens AG have agreed to assist the
Company in developing the feasibility study and its component parts.  SIBC has
agreed in principle to serve as project manager for the Hydropolis Qingdao
project and had its representative present at the signing ceremony in Qingdao
today.

Mr Joachim Kundt, Executive Vice President of Siemens AG in charge of
International Operations for Africa, the Middle East and CIS States, is a
director of the Company.

For further information contact:-
Mansoor Ijaz                                         Tel:-     07717 333 137
Chief Executive

13 October 2005




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