International Hotel Investments plc shareholders were informed yesterday that all the conditions listed in the agreement signed with Istithmar FZE last December 5 have been met accordingly

As agreed at the extraordinary general meeting held on January 31, IHI said it will capitalise the amount not exceeding €5 million from revaluation reserves and issue such number as fully paid up bonus shares of a nominal value of €1 each equivalent to the amount of the capitalisation.

The bonus shares will be issued and allotted in a ration of one bonus share for every six ordinary shares. The allotment of bonus shares will be made on the basis of the shares in issue as at June 30, 2006 (with Corinthia Palace Hotel Company Ltd waiving its rights to such bonus shares) to members holding such shares as at the effective date, being close of business tomorrow, the working day subsequent to closing of the transaction with Istithmar Hotels FZE.

Shareholders who wish to sell all or part of the bonus shares back to IHI can do so and IHI said it is committed to buy back such shares at €1 per share within six weeks from the effective date, that is by July 12, 2007.

Shareholders entitled to such allotments of bonus shares are being individually informed by post with full details of their entitlement.

IHI shareholders attending the sixth annual general meeting approved all the resolutions on the agenda, the company said.