Receipt of Regulatory Green Light Sets ERC on Course to Begin Phase One of Sahl Hasheesh Marina Development “Sawari”

Approval by Tourism Development Authority will allow ERC to proceed with the first phase of what will become the Red Sea’s premier marina and the crown jewel of Sahl Hasheesh

Egyptian Resorts Company (EGX: EGTS.CA), Egypt’s leading master developer of mega communities, and Orascom Development and Management, will immediately begin preparations to bring to market Phase 1 of Sawari, accounting for 1.1 million square meters of a 2.5 million sqm development positioned as the premier marina on the Red Sea and the crown jewel of Sahl Hasheesh. Phase 1 of the exclusive community will center around a world-class yacht club and marina with room for more than 330 boats and yachts.

The news comes immediately after the Tourism Development Authority (TDA) approved ERC’s request to redefine the boundaries of Sahl Hasheesh’s Phase 2. The approval leaves unchanged ERC’s total Phase 2 allocation area of 6 million square meters, but authorizes a 391,000-square-meter land swap that will permit ERC and development and management partner Orascom Development and Management to begin work on the first phase of Sawari.

“We are delighted that the TDA has approved our request to redefine Phase 2 boundaries, which has been for several years now the sole remaining obstacle to our launch of Sawari,” said ERC Chief Executive Officer Mohamed Kamel. “In this respect, the timing is particularly fortuitous: After years of sustained weakness beginning in January 2011, we are now seeing a significant return of appetite for second homes. What’s more, we have spent the intervening years very successfully positioning Sahl Hasheesh as the ‘place to be’ on the Red Sea coast, which has seen the community gain in popularity not just as a destination for international holidaymakers, but for domestic tourists as well.”

Despite the post-2011 slump in both the tourism and second-homes market, Sahl Hasheesh has gone from strength to strength, reporting average occupancy of 75% among its hotels in the first quarter of 2015 against a 65% average on the Red Sea in the same period. At the same time, ERC has completely sold-out Jamaran, its all-villas development, and has launched its Tawaya apartments in Old Town in partnership with Palm Hills Developments.

Phase 1 of Sawari will be able to accommodate vessels of up to 60 meters in length or more and will include two 5-star hotels and one 4-star property around the marina basin. This phase will also include more than 1,000 villas and apartments along the marina basin and lagoon, as well as an extensive pedestrian promenade featuring more than two kilometers of boutique shopping, fine dining and cafés as well as nightlife and entertainment venues.

Leading hospitality, leisure and entertainment designers WATG are designers for Sawari, while marina-centric community experts Orascom will provide development management as well as sales and marketing for the destination.

ERC and Orascom anticipate making an announcement in the near term regarding the timing of pre-launch sales and the full opening of its sales window for Sawari.

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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 acre 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, 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.
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
KATO Investment                                 11.96%
First Arabian Company                        10.00%
Rowad Tourism Company                     9.05%
Al Ahly Capital Holding                          9.00%
Misr Insurance                                       8.05%
Misr for Life Insurance                         6.96%
Orascom Development Holding          4.50%
Others                                                    40.48%
Investor Contact
Wael  Abou Alam |Telephone: +202 2735 8427
Chief Financial Officer |Fax: +202 2735 2743
Egyptian Resorts Company  |email: wael.aboualam@erc-egypt.com
Ayman Taha |Telephone: +202 2735 8427
Senior Manager – Investor Relations |Fax: +202 2735 2743
Egyptian Resorts Company | email: Ayman.Taha@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.

About ERCEgyptian 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 acre 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, 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.Authorized Capital               EGP 2,000,000,000Issued and Paid-In Capital   EGP 1,050,000,000 (1,050,000,000 shares @ EGP 1.00 / share)Shareholder StructureKATO Investment                                 11.96%First Arabian Company                        10.00%Rowad Tourism Company                     9.05%Al Ahly Capital Holding                          9.00%Misr Insurance                                       8.05%Misr for Life Insurance                         6.96%Orascom Development Holding          4.50%Others                                                    40.48%Wael  Abou Alam |Telephone: +202 2735 8427Chief Financial Officer |Fax: +202 2735 2743Egyptian Resorts Company  |email: wael.aboualam@erc-egypt.comAyman Taha |Telephone: +202 2735 8427Senior Manager – Investor Relations |Fax: +202 2735 2743Egyptian Resorts Company | email: Ayman.Taha@erc-egypt.comThis 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.