ERC Resumes Operations Following Recent Events in Egypt

Cairo, February 8, 2011 13:00 hrs Cairo time (11:00 hrs GMT)

Egyptian Resorts Company (EGX: EGTS.CA), Egypt’s largest master developer of mega resort cities, resumed normal operations on Sunday, February 6, 2011, at its Cairo headquarters in the wake of disruptions stemming from recent events in Egypt.

“I am pleased to note that we have passed through the challenges of the past week intact,” noted ERC Chief Executive Officer Mohamed Kamel. “Our entire staff is safe and back at work. Moreover, we have recorded no damage to our assets nationwide, and I note that operations continued at Sahl Hasheesh, our flagship resort city on the Red Sea coast, undisturbed by civil unrest in other major urban centers.
“Whatever immediate challenges businesses in Egypt may face, Egyptian Resorts Company’s management team and Board of Directors are resolute in their belief not just in the fundamentals of our business model, but in the long-term outlook for the Egyptian economy,” Kamel added.
Project planning for Sawari, ERC’s flagship marina development at Sahl Hasheesh, and Phase III of Sahl Hasheesh International Resort City continue apace.
“We are particularly gratified to have received such a tremendous outpouring of support from our shareholders in the past days,” noted Abu-Bakr Makhlouf, Head of Investor Relations at ERC. “We remain committed to the launch of our global awareness campaign, which began in January with initial placements in leading tourism industry publications and global magazines including National Geographic Traveler. Furthermore, our road shows and investor conferences schedule for the year remains unchanged as investors affirm their interest in ERC. Senior management looks forward to face-to-face meetings with current and prospective shareholders alike to discuss ERC’s unique business model and supremely undervalued stock despite recent events, and the long-term outlook for our industry.”

—ENDS—

About ERC
Egyptian Resorts Company S.A.E. (EGX: EGTS.CA) is a master developer of international standard resort communities on a fully-integrated management basis. The company is incorporated in Egypt and headquartered in Cairo. Egyptian Resorts Company acquires broad land holdings suitable for premium mega resort development at nominal value. The company then creates a master plan in partnership with global architectural and urban planning firms, builds state-of-the-art infrastructure, implements design guidelines and community management rules and regulations, and then on-sells individual pre-designated plots to sub-developers and investors whose primary businesses are hotel ownership, operation and management, as well as luxury resort and residential real estate development. ERC is developing multiple recurring revenue streams that include the supply of utilities (water, electricity, communications) through its project partners, as well as community management and maintenance fees and revenues generated by Sahl Hasheesh Company.

About Sahl Hasheesh Resort
Sahl Hasheesh Resort is ERC’s flagship master planned development, located just south of Hurghada on the Egyptian Red Sea coast. Built according to the highest international design standards, the year-round resort features world-class accommodation and amenities, including over 1,500 currently operational hotel rooms and several residential communities, targeting both tourists and first and second-home owners. Sahl Hasheesh boasts commanding sea views throughout its 4,100 hectares (two-thirds the size of Manhattan), the longest beach on the Red Sea and several renowned dive sites, including Hasheesh Island.

ERC Capital Structure
Authorized Capital EGP 2,000,000,000
Issued and Paid-In Capital EGP 1,050,000,000 (1,050,000,000 shares @ EGP 1.00 / share)
Shareholder Structure
Misr Insurance 15.00%
KATO Investment 11.96%
Rowad Tourism Company 10.00%
First Arabian Company 10.00%
Al Ahly Capital Holding 8.99%
Orascom Development Holding 4.50%
Other long-term investors 9.47%
Free Float 30.08%

Investor Contact (ERC)
Abu-Bakr Makhlouf | Telephone +202 2735 8427
Head of Investor Relations | Fax +202 2735 2743
Egyptian Resorts Company | email abmakhlouf@erc-egypt.com

Disclaimer and Forward-Looking Statements
This document is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe to or purchase securities of any kind and neither this document nor anything contained herein shall form the basis of any contract of commitment from any party whatsoever. Information, including but not limited to financial information, in this document should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or any other instruments in or in entities related to ERC or any other company. This document contains forward-looking statements. By their nature, forward-looking statements involve inherent risk and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. ERC does not make any representation, warranty or prediction that the results anticipated by such forward-looking statement will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standards scenario. Such forward-looking statements speak only as of the date on which they are made. For the avoidance of doubt, the words “believe”, “anticipate”, “expect”, “intend”, “aim”, “plan”, “predict”, “continue”, “assume”, “positioned”, “may”, “will”, “should”, “shall”, “risk” and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements.