New Zealand Earthquake - Update

Subject : MCK: CANTERBURY EARTHQUAKE UPDATE - 15/03/2011

MCK provides the following update on the Copthorne Hotel Christchurch City (Durham Street):

MCK stated today that it was liaising with Civil Defence Emergency Management (CDEM) in relation to the Copthorne Hotel Christchurch City. MCK Managing Director BK Chiu stated that the hotel had been identified as a likely candidate for demolition by CDEM.

"Civil Defence have taken steps to stabilise the building for now and we think that this is appropriate

given the current state of the building and its location. Maintaining public safety is critical and the

measures will also allow us to conduct further inspections," he said.

Mr. Chiu noted that as this hotel was a leased property, the Company was liaising with the building

owners who were based overseas as well as the company's insurers.

In relation to the hotel's staff, Vice President Operations Matt Taplin stated that consultation had begun with the company's Christchurch employees. A proposal had been put to staff which took into account the situation at Copthorne Hotel Christchurch City and the likely time frame for possible resumption of business at MCK's other Christchurch CBD Hotels (Millennium Hotel Christchurch and Copthorne Hotel Christchurch Central) once the cordons had been lifted. Mr. Taplin confirmed that the proposal did include possible redundancies for some of the staff as a result of the anticipated delays in regaining access to these hotels.

MCK will continue to provide updates to the market as required.

ENDS

Issued by Millennium & Copthorne Hotels New Zealand Ltd

Any inquiries please contact:

B K Chiu, Managing Director

Millennium & Copthorne Hotels New Zealand Ltd

(09) 913 8058