Airtours Plc acquires 19,99% of Aqua Sol Hotels Limited

1. The Board of Directors of Aqua Sol Hotels Limited announces that Airtours Plc has agreed to participate as a strategic partner in the company by purchasing the 19.99% of the issued share capital of Aqua Sol Hotels Limited, for the amount of £25,787,100.

2.  Airtours Plc is one of the largest tour operators in the world, with a substantial presence in the international tourism and leisure industry.

3.  The agreement for the sale of the shares has been concluded between companies that are controlled by the existing major shareholders, Messrs. Antonis Paschalis and Yiannis Panayis.

4. The Board of Directors of Aqua Sol Hotels Limited is expected to be strengthened with the presence of an experienced and competent Director that will be suggestedby Airtours Plc.

5. Aqua Sol Hotels Limited and Airtours Plc have already signed a business agreement governing the future co-operation of the two companies, concerning their strategic business development.

6. The signed business agreement is expected to provide Aqua Sol Hotels Limited with a number of major competitive commercial advantages, including the following:

•  A substantial contribution by the Airtours Group to the future expansion plans of Aqua Sol Hotels Limited, both in Cyprus and especially in Greece.

•  Management support that Aqua Sol Hotels Limited will obtain through the extensive experience and know-how of the Airtours Group in the tourism and leisure industry.

•  Increase of the hotels’ occupancies, both in Cyprus and Greece.

•  Increase in the company’s profitability through increased occupancies.

7. The two Companies’ plan, the construction and management of new tourist projects in top holiday resorts both in Greece, Cyprus and other destinations.

The Board of Directors of Aqua Sol Hotels Limited believes that this strategic alliance will enhance substantially the profitability of the company and will maximise the shareholders wealth.

AQUA SOL EXPANSION INTO GREECE

Aqua sol Hotels, the biggest hotel company in Cyprus, has taken the first step in its strategic expansion into Greece with the purchase of three hotels in the popular and cosmopolitan islands of Rhodes and Crete.

The move is Aqua Sol Hotels' first move into the Greek market, where it plans to make further acquisitions during the next three years.

In Rhodes the company has purchased the 211 room Blue Horizon Palm Beach Hotel set 8 km from the town of Rhodes, and the 253 room Sun Palace Hotel both located on the most popular beaches of Rhodes.

The Blue Horizon Palm Beach Hotel and its beach of lalyssos are used as the Pro-Center F2 for professional windsurfing, just one of five such centers worldwide.

An A' class hotel 500 metres from the town of lalyssos, it has 133 rooms and 18 suites in the main building and 60 bungalows in the grounds which are planted with tropical plants and trees.

Apart from its main restaurant, it has a taverna, Kymata, which offers gourmet dining with Greek and international specialty dishes.

The A' class Sun Palace Hotel set on Faliraki Beach is a short walk from the shopping center of faliraki square and close to the 18-hole Abandon golf course and a horseriding center.

In Crete Aqua sol Hotels has acquired the A' class 182-room Elounda Marmin Hotel set in Elounda, a region noted for its upper class tourism.

It has two large open air swimming pools, an open air theatre, and a wide variety of up to the minute sports facilities.

Antonis Paschalis, Joint Managing Director of Aqua Sol Hotels, said, "These acquisitions allow us to control two hotels in Rhodes with a total of 464 rooms and one in crete with 182 rooms, which is a healthy basis from which to undertake further expansion in greece, which we view as offering excellent prospects.  The purchase of these hotel units in the most popular tourist destinations in greece, together with our extensive and long term network relationship with major international travel agents and our expertise in the area, combine with our vision and flexibility as prerequisites of our establishment in Greece, which we see as following the lines of our growth in Cyprus".

Yiannis Panayi, Joint Managing Director of Aqua Sol Hotels, added, "Our expansion into Greece is in the line with our projected tergets and the consistency of our promises to our investors and shareholders.

"We are confident that our achievements in greece will match the speed of our expansion in cyprus."