Merlin Entertainments Regulatory News (MERL)

25 February 2016

Merlin Entertainments plc

Merlin Entertainments announces a strategic partnership

and investment in Big Bus Tours

Merlin Entertainments plc (Merlin) today announces the investment of $34.4m in Big Bus Tours, the leading global owner-operator of Hop On Hop Off city tours, and the formation of a strategic partnership allowing further cooperation across many of Merlin's city centre markets.

Summary

· Big Bus Tours is the leading global owner - operator of open-top sightseeing buses with a fleet of nearly 400 buses in 17 major cities

· The strategic partnership will provide opportunities for cross selling, promotions and joint sales and marketing activity

· Merlin will invest $34.4m for a total participation of c.15%

Big Bus Tours is the leading global owner- operator of Hop On Hop Off city tours, currently operating in Abu Dhabi, Budapest, Chicago, Dubai, Hong Kong, Istanbul, Las Vegas, London, Miami, Muscat, New York, Paris, Philadelphia, Rome, San Francisco, Vienna and Washington DC. The shareholding will attract the customary protections for minority shareholders.

Nick Varney, Chief Executive Officer, commented:

"We are delighted to announce this investment and partnership with Big Bus Tours. We see significant revenue synergies from this business with our own city centre attractions and there is already a clear overlap in 8 cities, including London, Hong Kong and San Francisco. This investment will facilitate a closer working relationship on the ground while enabling us to learn about a highly complementary business."

Pat Waterman, Chief Executive Officer of Big Bus Tours, commented:

"We are very excited by the opportunities generated by this strategic deal with Merlin. The significant overlap in geographic footprint and creation of memorable customer experiences enables opportunities to cross-sell and promote tickets for both companies. Together, we will also be able to offer compelling new products, bundles and city passes to further delight our customers."

Financial information

Big Bus Tours is a private company with gross assets of $409.8m and Group loss after tax of $7.4m for the 79 day period ended 30 April 2015 (unaudited). The underlying Group Operating Profit for the 6 month period to October 2015 is $19.1m (unaudited). Merlin's investment of $34.4m will acquire ordinary shares and shareholder loan notes representing c15% of the company. The shareholding will attract the customary protections for minority shareholders and be subject to 'drag and tag'1 rights in the event of a sale by the majority shareholder.

Contact details:

For further information please contact:

Investors

Big Bus Tours

Alex Payne +44(0)207 808 6763

Notes to editors

1. Merlin Entertainments plc is a global leader in location based, family entertainment. Europe's Number 1 and the world's second-largest visitor attraction operator, Merlin now operates over 100 attractions, 12 hotels and 4 holiday villages in 23 countries and across 4 continents. The company aims to deliver memorable experiences to its more than 60 million visitors worldwide, through its iconic global and local brands, and the commitment and passion of its circa 27,000 employees.

2. Big Bus Tours is the industry-leading open-top sightseeing business in the world. Group turnover exceeds $150m generated in 17 of the world's great cities over 3 continents. The company delights over 4 million customers per year in nearly 400 double-decker buses employing over 1,500 staff.

1 'Drag and tag' provisions provide the right for minority investors to participate in a majority sale of shares ('tag-along') and provide the right for the majority shareholder to require the participation of the minority shareholder in a majority sale of shares ('drag-along').