Press Release Date Posted : Friday, 10 March, 2006 Title : Hotel Closure/Part 1 of 2 Description : We can confirm that we have given notice to exercise the break clause in our lease of the Regent Palace Hotel to the landlord, The Crown Estate. The Regent Palace Hotel, built nearly a hundred years ago, has become increasingly uneconomic to operate as a hotel to the standards requred by a 21st century clientele. To modernise the hotel would require a huge investment, the cost of which could never be justified given the limitations of its structure. To keep it running in its present state is already uneconomic and will become increasingly so as time goes on. Date Posted : Friday, 10 March, 2006 Title : Hotel Closure/Part 2 of 2 Description : Having reviewed all the options, we have concluded that the hotel in unviable. After discussions with the freeholder, The Crown Estate, we have therefore decided to exercise the break clause in our lease. It is anticipated that the hotel will cease to operate towards the end of 2006. For further information contact Tom Wyatt, ReputationInc, on 020 7758 2800. For further information on The Crown Estate, please contact Lee Findell, Weber Shandwic, on 020 70670318.