Notification under AIM Rule 1

RNS Number : 2922K

Park Plaza Hotels Limited

17 December 2008

Park Plaza Hotels Limited

('Park Plaza' or 'the Company')

Notification under AIM Rule 17

Park Plaza announces that on 16 December 2008 (following the relevant shareholders becoming aware that the granting of security over shares in which a director is interested is disclosable under AIM Rule 17) it was notified by:

Euro Plaza Holdings B.V. ('Euro Plaza'), a member of the Red Sea group, that its holding of 18,225,300 ordinary shares in Park Plaza (43.73% of the issued share capital) is charged to secure guarantees given by Euro Plaza of certain bank facilities provided to other companies in the Red Sea group. The security was created on 25 September 2008 as part of a package of security provided by various members of the Red Sea group, and comprises all Park Plaza shares then owned, or subsequently acquired, by Euro Plaza; and

PPHL Holding B.V. ('PPHL Holding'), a company owned by the Red Sea group and Molteno Limited ('Molteno'), that its holding of 421,424 ordinary shares in Park Plaza (1.01% of the issued share capital) is charged to secure a bank facility provided to PPHL Holding. The security was created on 24 June 2008 and comprises all Park Plaza shares then owned, or subsequently acquired, by PPHL Holding.

Euro Plaza and PPHL Holding have informed Park Plaza that none of the facilities is currently in default. Euro Plaza has further advised Park Plaza that the overall value of the security provided to the lending bank in connection with the facilities to members of the Red Sea group, which includes other substantial assets of the Red Sea group, is considerably greater than the total amount outstanding under the relevant facilities.

The Red Sea group is ultimately controlled by trusts of which the beneficiaries are members of the family of Eli Papouchado, the Chairman of Park Plaza. As disclosed in Park Plaza's AIM Admission Document, Mr Papouchado is deemed to be interested in the shares in Park Plaza owned by Euro Plaza. He is also deemed to be interested in the shares in Park Plaza owned by PPHL Holding, as PPHL Holding is owned as to 70% by Atlantic Pacific Enterprises B.V., another member of the Red Sea group.

Boris Ivesha, the CEO of Park Plaza, is deemed to be interested in the shares in Park Plaza owned by PPHL Holding, as PPHL Holding is owned as to 30% by a wholly-owned subsidiary of Molteno. As disclosed in Park Plaza's AIM Admission Document, Molteno is ultimately controlled by the Princeton Trust of which the beneficiaries are members of Mr Ivesha's family.

The interests of Euro Plaza, PPHL Holding, Eli Papouchado and Boris Ivesha in Park Plaza remain as disclosed in the announcements made by Park Plaza on 5 and 11 December 2008. The Red Sea group and PPHL Holding have informed Park Plaza that they have no current intention to dispose of any of their respective interests in Park Plaza.

As disclosed in Park Plaza's AIM Admission Document, the trustee of the Princeton Trust has agreed with Euro Plaza that for so long as the combined direct and indirect interests of the Red Sea group and the Princeton Trust in Park Plaza are not less than 38% of Park Plaza's issued share capital and the Red Sea Group's interest in Park Plaza is at least 26.5% of the issued share capital, the Princeton Trust will vote its shares at general meetings of shareholders in a consistent manner with the votes cast by the Red Sea group.

As a result of this agreement, Euro Plaza and Molteno are deemed to be acting in concert for the purposes of Rule 9 of the City Code on Takeovers and Mergers (the 'Code'). Euro Plaza and Molteno between them hold more than 50% of Park Plaza's voting rights and (for so long as they continue to be treated as acting in concert) may accordingly increase their aggregate interests in shares without incurring any obligation under Rule 9 of the Code to make a general offer, although individual members of the concert party will not be able to increase their percentage interest in shares through or between a Rule 9 threshold without Takeover Panel consent.