Acquisition of site in Ginza District, Tokyo

For Immediate Release 30 September 2011

MILLENNIUM & COPTHORNE HOTELS PLC (M&C)

Acquisition of site in Ginza District, Tokyo, Japan

On 8 July 2011, M&C announced that one of its subsidiaries had entered into a conditional purchase and sale agreement (the "PSA") with Cosmos Initia Co., Ltd to acquire a site (containing land and a building) in the Ginza district in Tokyo (the "Property").

M&C is pleased to announce that the transaction was completed on 30 September 2011.

In line with M&C's stated intention of inviting other investors to participate in this investment, its holding company, City Developments Limited ("CDL") was invited to participate to better manage M&C's project risks, taking into account CDL's well-established real estate development experience and knowledge of the Japanese market as well as to leverage upon the long-standing relationships of CDL and CDL's parent company with Mitsui Fudosan Co., Ltd ("MFC"). M&C's effective interest in the project is 70.01% and CDL's is 29.99% (excluding the interest held through the M&C group).

M&C's plans regarding the Property remain as previously announced. As previously disclosed, MFC will project manage the demolition of the existing building and the development of the new building at the site. Concurrent with the completion of the PSA, an agreement has been entered into with MFC setting out the indicative principal terms by which MFC will be granted a fixed-term master lease of the hotel premises in the new development which will be built on the land following the demolition of the existing building thereon. The hotel development is scheduled to be completed by no later than the fourth quarter of 2014.

M&C's current preliminary estimate of the total investment cost for the proposed acquisition and development of the Property is approximately ¥14.56 billion (approximately £121 million)¹. On this basis, this project presents an opportunity for the M&C group to gain a foothold in prime real estate in Ginza, Tokyo at the projected cost of approximately ¥45 million (approximately £375,000)¹ per room key for hotel on a completed basis.

M&C Chairman, Kwek Leng Beng said, "We are indeed extremely pleased that we have managed to secure the ownership of a property in the prime district of Ginza in Tokyo at an acceptable price in a competitive bid situation. The timing for this acquisition could not have been better for the M&C group."

Enquiries:

Millennium & Copthorne Hotels plc Tel: +44 (0) 20 7872 2444

Adrian Bushnell, Company Secretary

BengLan Low, SVP Finance

 ¹ Based on £1 =Yen 120 as at 27 September 2011