Suncrest Hotels plc - Interim Results Publication

Thursday, June 17th, 2004

The Board of Directors of Suncrest Hotels plc today published the interim results for the period November 2003 to April 2004.

The company’s results for the first six months of the current financial year show a 28% increase in turnover when compared with the same period in 2002/03. This resulted in a substantial reduction in the company's operating loss for the period which stood at Lm281,000 (2003: Lm371,000). The improved performance is the result of a change in the company's marketing strategy which is no longer heavily dependent on the German market but is now focused on the UK market.

The Sol Suncrest Hotel has strengthened its share in the Maltese market and placed greater focus on Food & Beverage operations specifically targetting conference and incentive groups. F&B revenue increased by Lm123,351 over the same period last year. Careful monitoring of operational expenditure has enabled the company to keep costs as low as possible without lowering standards or service.

The loss for the period amounted to Lm393,000 compared to a loss of Lm485,000 incurred during the period from November 2002 to April 2003.

The Directors are confident that the tangible results which have been achieved since the appointment of the company's Chief Executive Officer will continue to bear fruit during the current year. The company has also proceeded with the implementation of the Suncrest Beach Vacation Club which will see the conversion of the hotel's sixth floor into timeshare apartments.

It is the intention of the Board of Directors to channel these funds to create a sinking fund to be used for the repayment of the company's bonds in 2007. The timeshare project will result in a stronger cashflow and will make the hotel less vulnerable to cyclical trends in the hospitality industry.

In a separate company announcement also issued today, Suncrest announced that it has terminated the management contract with Sol Melia SA.

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