Orascom Development Holding AG

DGAP-Adhoc: Orascom Development Holding AG: Orascom Development announces the settlement of the disputes with Falcon Hotels S.A.E.

Orascom Development Holding AG  / Key word(s): Miscellaneous/Miscellaneous

23.06.2014 07:00

Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release

Orascom Development announces the settlement of the disputes with Falcon
Hotels S.A.E.

Altdorf/Cairo, 23 June 2014 - In 2008, Orascom Development Holding AG
(Orascom Development, ODH), its subsidiaries and partners (as buyer)
entered into a transaction with Falcon Hotels S.A.E. (as seller) for the
purchase and development of the Cape Citadel project and hotel. This
transaction later resulted in multiple disputes between Falcon and Orascom
Development, its partners and subsidiaries. The disputes included numerous
litigation procedures as well as four major arbitration proceedings in two
different jurisdictions.

Orascom Development, its partners and subsidiaries have reached an amicable
settlement to end the aforementioned disputes. The settlement will
positively reflect on Orascom Development's profit and loss statement, as
it will reverse previously formed provisions in the amount of USD 60
million (equivalent to CHF 54 million). Currently and based on management's
assessment, the Group has decided to only reverse 80% of the aforementioned
amount.

As part of the overall settlement, effective immediately, Falcon Hotels
S.A.E. and its controlling shareholders have recognized the entitlement of
Orascom Development, its partners and subsidiaries to receive all revenues
from the Cape Citadel Hotel's operations.

Cape Citadel is a five-star hotel with 514 rooms located in Sahl Hasheeh,
south of Hurghada. The hotel generated a net profit from operations of CHF
4.2 million during FY 2013.



About Orascom Development Holding AG

Orascom Development is a leading developer of fully integrated destinations
that include hotels, private villas and apartments, leisure facilities such
as golf courses, marinas and supporting infrastructure. Orascom
Development's diversified portfolio of destinations is spread over eight
jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro
and United Kingdom), with primary focus on touristic destinations and
budget housing. The Group currently operates eight destinations; four in
Egypt El Gouna, Taba Heights, Haram City and Makadi, The Cove in United
Arab Emirates , Jebel Sifah and Salalah Beach in Oman and Andermatt in
Switzerland. Orascom Development has a dual listing, with a primary listing
on the SIX Swiss Exchange and a secondary listing on the EGX Egyptian
Exchange.

Contact for Investors:
Sara El Gawahergy
Director of Investor Relations
Tel: +20 224 61 89 61
Tel: +41 418 74 17 11
Email: ir@orascomdh.com


Contact Media Relations
media@orascomdh.com

Disclaimer & Cautionary Statement
The information contained in this e-mail, its attachment and in any link to
our website indicated herein is not for use within any country or
jurisdiction or by any persons where such use would constitute a violation
of law. If this applies to you, you are not authorized to access or use any
such information. Certain statements in this e-mail and the attached news
release may be forward-looking statements, including, but not limited to,
statements that are predications of or indicate future events, trends,
plans or objectives. Forward-looking statements include statements
regarding our targeted profit improvement, return on equity targets,
expense reductions, pricing conditions, dividend policy and underwriting
claims improvements. Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown risks and
uncertainties and can be affected by other factors that could cause actual
results and Orascom Development Holding AG's plans and objectives to differ
materially from those expressed or implied in the forward looking
statements (or from past results). Factors such as (i) general economic
conditions and competitive factors, particularly in our key markets; (ii)
performance of financial markets; (iii) levels of interest rates and
currency exchange rates; and (vii) changes in laws and regulations and in
the policies of regulators may have a direct bearing on Orascom Development
Holding AG's results of operations and on whether Orascom Development
Holding AG will achieve its targets. Orascom Development Holding AG
undertakes no obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information, future
events or circumstances or otherwise. It should further be noted, that past
performance is not a guide to future performance. Please also note that
interim results are not necessarily indicative of the full-year results.
Persons requiring advice should consult an independent adviser.


23.06.2014 News transmitted by EQS Schweiz AG.
The issuer is responsible for the contents of the release.

EQS publishes regulatory releases, media releases on the capital
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Language:               English
Company:                Orascom Development Holding AG
                        Gotthardstraße 12
                        6460 Altdorf
                        Switzerland
Phone:                  +41 41 874 17 17
Fax:                    +41 41 874 17 07
E-mail:              ir@orascomdh.com
Internet:            www.orascomdh.com
ISIN:                   CH0038285679
Valor:                  A0NJ37
Listed:                 SIX

End of Announcement                             EQS Group News-Service

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