Citius Res Regulatory News (CRES)

27 Feb 2007 15:38

Crescent Hydropolis Resorts PLC27 February 2007 CRESCENT HYDROPOLIS RESORTS PLC Isle of Man - Munich - Qingdao ANNOUNCEMENT Middle East Projects Update Crescent Hydropolis Resorts PLC (the Company) is pleased to announce that theCompany has entered into a binding Memorandum of Understanding (the Memorandum)with His Excellency, Shaikh Fawaz Abdullah Al Khalifa (Shaikh Fawaz), a memberof the Royal Family of Bahrain, an exclusive right to assist the Company inlaunching Hydropolis projects in one or more of the Sultanate of Oman (Muscat),the Kingdom of Saudi Arabia (Jeddah) and the United Arab Emirates (Dubai) (theExclusive Countries). Shaikh Fawaz is chairman of Al Fawaz Investment Group, based in Manama, Bahrainand Dubai, United Arab Emirates. Prior to founding Al Fawaz Investment Group in1997, he started his public service career as a member of the Division ofMilitary Security and Intelligence of the Bahrain Defense Force, serving from1986 until 1989. He then served as Public Relations Advisor to the Minister ofInformation at Bahrain's Ministry of Information from 1989 until 1991. From 1991until 1997, he was the director of public relations at Bahrain's Ministry ofPlanning (Central Organization of Bahrain Statistics, formally). Shaikh Fawazearned his Masters in Public Relations from Cairo University in 1986. The Memorandum signed in Dubai on February 25th calls for a term of six months(with an option to renew the retainer for a further six months) during whichShaikh Fawaz shall seek to procure in the Exclusive Countries, on termsacceptable to the Company in its sole discretion, (i) licensing, buildingpermits and other necessary regulatory authorities the; and (ii) land, landleases and the corresponding sea rights for any project. It is anticipated thatland rights may be contributed by Shaikh Fawaz in consideration for equity inthe Company's local project development company formed at such time that aproject is granted full licensing and approvals. The Company will pay Shaikh Fawaz's reasonable out-of-pocket expenses up to amaximum value of $100,000 (One Hundred Thousand USD) during the period and bearsresponsibility for providing his legal and technical advisers with all necessaryproject presentations, technical specifications and feasibility studies as shallbe needed to provide information to governmental authorities in each ExclusiveCountry. The Company is obligated to provide a Franchise License to the localproject development company for each project that is granted governmentalapprovals, but only at such valuation as determined by the Company's directorsin their sole discretion. Under the terms of the Memorandum, the Company shall provide each projectproposal approved by the government of an Exclusive Country with a viablefinancing proposal that has been approved by the Company's directors, theCompany's nominated adviser, auditors and counsel. Shaikh Fawaz reserves theright to make additional investments himself in each project as well as to bringlocal investors in each country into the financing structure for each approvedproject. In the event of a success in gaining licensing and permit approvals, and insecuring the land or land lease and corresponding sea rights for a project onterms acceptable to the Company, the Company has agreed with Shaikh Fawaz to payan arrangement fee equal to 1.00% of the total project cost, as estimated by theCompany's project managers, SIBC Industrial Building Consultants GmbH, inordinary shares of the Company. "We are very pleased to join forces with a leading member of Bahrain's businesscommunity and the ruling family to further the Company's objectives in bringingHydropolis to the Middle East.", said Mansoor Ijaz, vice chairman of the Board,after concluding negotiations with Shaikh Fawaz. "We believe we can bring great value through our established relationsthroughout the Gulf region to the shareholders of the Company, and we areprepared to contribute our own equities to this important project. We will workvery hard with the Company to bring an important Hydropolis project to life inOman, Dubai and Saudi Arabia", said Shaikh Fawaz. Mansoor IjazDeputy Chairmanmansoor.ijaz@crescent-hydropolis.com 27 February 2007 Jonathan NaessNabarro Wells & Co. LimitedNominated Adviser0207 710 7400 This information is provided by RNS The company news service from the London Stock Exchange