Further re Katra Holdings Loan

5 May 2010

EIH Plc (the "Company" or "EIH")

Update on legal proceedings commenced in Singapore to recover amounts owed to the Company by Katra Holdings Limited

As the Company has announced previously, legal proceedings have been commenced in Singapore against Mr Ramesh Vangal to enforce the personal guarantee provided by him in respect of the $2.5 million loan made by the Company to the Mauritian-incorporated Katra Holdings Limited (the "Katra Loan").  On 26 April 2010 the Company was successful in obtaining a judgment in the High Court of the Republic of Singapore (the "Judgment") against Mr Ramesh Vangal whereby Mr Vangal was ordered to pay to the Company the sum of $4,686,904.04 (an amount which reflects an inclusion of accrued interest on the Katra Loan), and interest on $4,686,904.04 at the rate of 30% per annum from 31 December 2009, and certain costs incurred by the Company.

William Knight (Chairman) commented: 

"Despite the commencement of legal proceedings by the Company in Singapore, New York and Mauritius, both Katra Holdings Limited and Mr Ramesh Vangal continue to fail to pay all or any of the amount owed to the Company pursuant to the Katra Loan. We therefore continue to work with all our advisors to recover the monies owed to the Company and the Judgment of the Singapore Court is a positive step forward in our efforts to achieve this result."

Contacts:

EIH Plc

William Knight + 44 (0)20 7221 3900

Seymour Pierce (Nominated Adviser and Joint Broker)

Nandita Sahgal, Director + 44 (0)20 7107 8000

Singer Capital Markets Limited (Joint Broker)

Jos Trusted +44 (0)20 3205 7500