15.10.2008

Intourist, largest vertically integrated tourist holding of Russia, and International Hotel Investments, p.l.c. are announcing the creation on a parity basis (50%-50%) of a mutual fund for development of 4-5 star hotels network on the territory of Russian Federation. On behalf of the companies the agreement was signed by Alexander Arutiunov, Intourist president, and Simon Naudi, International Hotel Investments, p.l.c. executive director.
Statutory fund of joint venture amounts up to $100 million, before the year 2008 is out fund plans to take out additional $200 million of borrowings. So, investment potential of the originated fund amounts up to $300 million.

Intourist president Alexander Arutiunov said: “Agreement with International Hotel Investments, p.l.c. corresponds to the strategy of Intourist Group of companies hotel business on the territory of Russian Federation. Implementation of this project will allow widening of the spectrum of offered hotel services and raising the competitive position of the entire holding”.

International Hotel Investments, p.l.c. executive director Simon Naudi said: “Russian hotel business is very perspective for the development of our hotel network. We consider that Intourist is the most dynamically expanding tourist holding with strong positions in every segment of the market, including hotel business. Choice of this company as our partner is conditioned by that”.

For additional information please contact:
Julia Krylova
Press-secretary VAO Intourist
Tel/fax: (495) 730-1906
media@intourist.ru

Intourist Group of companies - vertically integrated tourist holding, representing the managing company VAO “Intourist” and 4 business divisions - tour operating (NTK Intourist), hotel business (Intourist Hotel Group), retail sales (Intourist Travel Shop) and transportation services (Intourist Transportation Services). Group of companies trade turnover in 2007 reached $517 million, earnings - $374 million. Geography of presence – 80 regions of Russian Federation. Company cooperates with 7000 partners in 168 countries of the world. Majority interest strategic stake of Intourist is controlled by JSFC Sistema.
International Hotel Investments, p.l.c. (IHI) is founded by Maltese company Corinthia Palace Hotel of Malta in 2000. IHI owns hotels in London, Lisbon, Budapest, Prague, Tripoli, Malta. In Russia company owns hotel Nevskij palace in Saint-Petersburg. Earnings in 2007 – 104,18 million euro, reported profit – 10,01 million euro. Shareholders - Corinthia Palace Hotel of Malta and Nakheel Hotels of Dubai.