Hydropolis Qingdao Project

Crescent Hydropolis Resorts PLC
26 April 2006


                        CRESCENT HYDROPOLIS RESORTS PLC

            NEW YORK ISLE OF MAN LONDON MUNICH MONACO DUBAI QINGDAO

                                  ANNOUNCEMENT

                           Hydropolis Qingdao Project

The Directors of Crescent Hydropolis Resorts PLC (the Company) (AIM: CRES)
announce today that agreement has been reached with the People's Government of
Laoshan District, Qingdao, China (Laoshan) to allocate land and sea rights
required for building the world's first underwater hotel and resort, Hydropolis
(Hydropolis Qingdao). Agreement has also been reached with Laoshan on Hydropolis
Qingdao's technical specifications and Laoshan has confirmed within their
established authorities that all necessary regulatory and licensing approvals
will be put in place.


The proposed investment in Hydropolis Qingdao is expected to be approximately
€400 million, to be raised from a mix of permanent construction loans and
private equity from investors. Construction timetables envisage the HydroTower
component of the Hydropolis Qingdao being completed prior to the start of the
2008 Beijing Summer Olympic Games. The sea-based Hydropalace will follow to
completion and operation in 2009.


On 26 April 2006, Crescent Hydropolis Holdings Qingdao Limited (CHHQ), a wholly
owned subsidiary of the Company created for the purpose of developing Hydropolis
Qingdao, entered into a Binding Cooperation Agreement (the Agreement) with
Laoshan. Under terms of the Agreement, the HydroTower Landstation will be
located on 33,000 sq meters of land (the Land) that comprise the previous
location of the Ocean Entertainment Park in Qingdao. The purchase price of the
Land leasehold shall be determined through an open auction tender process that
will, when paid, give the Company through its local subsidiaries the right to
use the Land for 40 years, with the right of first refusal to extend the Land
leasehold.


The Hydropalace underwater hotel component will be situated southwest of the
island of Chidao and southeast of Xiao Maidao in the sea with a surface area of
approximately 20,000 sq meters. Sea rights will be offered in the form of a
lease at the site where the Hydropalace is to be situated. The Company's local
subsidiaries shall have the right to occupy and use the location for 25 years,
with the right of first refusal to extend the sea lease agreement. The leasing
fee will be paid in a lump sum amount equal to 30% of the per sq meter cost of
the Land times the total surface area of the sea used.


Hydropolis Qingdao is expected to offer luxury hotel accommodations and spa
facilities in underwater living environments, including wellness centers,
ballroom facilities, rotating restaurants and other first-of-their-kind
facilities. The HydroTower Landstation, which serves as a welcoming center for
hotel guests will be connected to the Hydropalace by sea-faring HydroShuttles.


The Agreement sets forth a detailed construction description of the HydroTower
Landstation and its interior spaces as well as its ancillary buildings. It
further sets forth the prototype design images and floor plans for the
Hydropalace, including layouts of interior spaces. An integrated financial model
that shows profitability and operating assumptions for the project are submitted
in exhibit form as part of the Agreement.


In the Agreement, Laoshan confirms, under authorities vested in it, that no
other licensing, permissions or other approvals are needed for the project to
commence with construction. The Agreement is conditional upon CHHQ obtaining
financing for the Hydropolis Qingdao project on terms to the satisfaction of
CHHQ and the Company and , is subject, in the case of the obligations and
liabilities of CHHQ, to execution of relevant agreements to effect its terms in
detail.


'Hydropolis Qingdao is the world's first true underwater hotel and resort
facility - a symbol for the peoples of Laoshan District, the city of Qingdao and
all throughout China to take pride in,' said Joachim Hauser, executive chairman
and founder of the Company.


'We are delighted and excited to announce the launch of Hydropolis Qingdao
today. It is a magnificent vision for the future of mankind, and we thank
Joachim Hauser, Mansoor Ijaz, Dr Jens-Christian Posselt and the entire
Hydropolis team for bringing this project to life in Laoshan District,' said
Wang Wei Da, Director of People's Government of Laoshan District Qingdao.


The Company anticipates that Siemens AG will provide engineering and technical
systems, including electrical, hydro, security and water systems for the
Hydropalace and HydroTower Landstation, and further that SIBC Industrial
Building Consultants will manage the project's various building structures to
completion. 'We firmly believe in the Hydropolis concept and are pleased to have
been a part of this historic moment in the history of the world's revolutionary
building concepts,' said Gerhard Tegtmeyer, Managing Director and CEO of SIBC
Industrial Building Consultants, while in Qingdao for the signing ceremonies.


For further information contact:-

Mansoor Ijaz Tel:- 07717 333 137 26 April 2006

Chief Executive



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