- New Bond Issue

March 28, 2007

GAP Developments plc has announced a new bond issue in either of two currencies for a total of Lm15 million or €35 million or in any proportion of the two currencies depending on the level of demand from investors. Both bonds carry a coupon of 7.0% per annum with a final redemption date on 30 April 2013. The Issuer reserves the right to redeem the bond earlier either on 30 April 2011 or on 30 April 2012.

GAP Developments plc (formerly Imperial Point Company Limited) is a property development company which was incorporated on 21 February 2006 to acquire, reconstruct and develop the Fort Cambridge Area located within Tigne Point in Sliema having an overall total area of approximately 29,225m2. The Company was changed to a public limited liability company on 20 February 2007 and has an issued share capital of Lm2 million. GAP Developments plc is a wholly-owned subsidiary of GAP Holdings Limited which was established in 2001 by George Muscat, Adrian Muscat and Paul Attard to carry on the business of property development.

The Company was awarded the tender for the Fort Cambridge Area by the Government of Malta on 20 June 2006 following a public adjudication process during which GAP Developments plc was the highest bidder. The total acquisition is expected to amount to Lm28.5 million and is expected to be financed through a Senior Loan of Lm14.6 million (€34 million) granted by BAWAG Malta Bank Limited and London Forfaiting Company Limited and the public bond issue of Lm15 million (€35 million).

The bonds are secured by a second general and special hypothec over the 340 apartments that are expected to be built in the coming years. This bond is expected to be listed on the Alternative Companies List of the Malta Stock Exchange.

A preplacement stage will open and close on Wednesday 11 April for those applicants of a minimum of Lm10,000 or €24,000. The General Public Offering for those applications of a minimum of Lm1,000 or €2,500 opens on Monday 16 April and closes on Friday 20 April or earlier at the Issuer’s discretion.