Baha Mar Development Takes Over Resorts

5 May 2005

BAHAMAS -- (PRESS RELEASE) -- Baha Mar Development Company Ltd. today announced that it has taken over the management and operation of the Radisson Cable Beach Resort, the Nassau Beach Hotel, and the Wyndham Nassau Resort & Crystal Palace Casino. Located adjacent to one another along 3,000 feet of Nassau's largest and most beautiful beach, the consolidation of the three hotels into one resort complex will result in making the properties the second largest resort in the Caribbean.

Michael Sansbury, Executive Vice President, Baha Mar Development Company Ltd., stated, "Capital improvements of $15 million are already underway with minimal inconveniences to guests. It will be business as usual, but with a major plus."

Sansbury added, "We are single-mindedly committed to taking these resorts and creating a product and guest experience with much improved standards and upgraded service. For the first time, visitors will have access to an exciting array of cross-property amenity and service privileges. As of today, guests can enjoy beach, golf and tennis entitlements at all three properties."

Sansbury also revealed optimism for a smooth and uninterrupted transition to both employees and guests of the properties.

Together, the resorts -- which will retain their existing flags -- will now offer guests and visitors 1,941 guest rooms and suites, most offering incredible ocean views; a 35,000 square foot full-service casino; over 50,000 square feet of meeting space; 20 food and beverage facilities; a complete tennis facility; an 18-hole resort golf course; over a half mile of Nassau's best beach; and a variety of water sport activities. In addition, the Cable Beach resorts are conveniently located within 20 minutes of the airport.

The $15 million in capital improvements, which are scheduled for completion by the end of the year, will include a full renovation of the casino, enhancements to landscaping, lobby improvements, 675 newly decorated rooms, as well as, restaurant and meetings facility refurbishments and upgrades. Operational and staff training plans are also scheduled.

The revitalization of the Cable Beach properties is the prelude to a Baha Mar mega resort. "This is an historic moment for our company and for the entire Bahamian tourism industry," said Robert Heller, President and Chief Financial Officer. Heller continued, "Baha Mar will have an enormous impact on the Bahamian economy by creating thousands of jobs in both construction and operations. In fact, our $1.2 billion investment in Phase One represents the single largest investment in the history of the Bahamas as we look forward to creating a one-in-the-world resort that will include 2,700 hotel rooms across multiple properties, each with its own brand and distinct character. Baha Mar will feature the largest casino in the Caribbean, and countless amenities and 'must-see', 'must-do' experiences designed for our hotel guests, as well as to attract cruise arrivals and Bahamians."

"This is the beginning of an exciting new chapter in Nassau's tourism product. The excellent ideas and improvements that the new owner is bringing to the island will greatly enhance our efforts to make the destination the most popular in the Caribbean region," said Vincent Vanderpool-Wallace, Director-General, of Bahamas Ministry of Tourism.

The three properties were purchased by Baha Mar Development Company in March 2005 from the government-owned Bahamas Hotel Corporation (Radisson Cable Beach Resort), and developer Philip Ruffin (Nassau Beach Hotel and Wyndham Nassau Resort & Crystal Palace Casino).