Colony Capital in Agreement to Purchase 41 Luxury Hotels from Raffles Holdings - Tuesday 12th of July 2005

Colony Capital, LLC, a leading international investment fund with more than 15 years of experience investing in global hospitality assets, announced today that it has entered into an agreement to purchase all of the hotel interests of Raffles Holdings Limited, comprised of 15 Raffles Hotels & Resorts and 26 Swissotel Hotels & Resorts in 35 destinations, for approximately US$1 billion.

The transaction, which is expected to close by year end, and is subject to shareholders approval, includes the fabled Raffles Hotel Singapore, one of the worlds foremost hotel assets and the cornerstone of Singapores hospitality industry.

"We are honored to become the custodian of one of the finest hotel chains in the world and a true national treasure of the people of Singapore," said Thomas J. Barrack, chairman and CEO of Colony Capital. "The properties success is clearly attributable to the dedication and professionalism of its management and staff. Colony recognizes the need to keep talented and experienced management and employees and we look forward to working with them. We deeply respect the historical significance of the Raffles Hotel, Singapore and we consider it our responsibility to protect that legacy. We are delighted Jennie Chua has agreed to remain as chairman of the Raffles Hotel Singapore to provide continuity and support our efforts."

"Our strategy with the business fundamentally revolves around brand positioning and extension. Our priorities here are first and foremost to act as custodians for the Raffles brand. Next, we are committed to the continued growth of the Raffles and Swissotel brands over the years ahead, and support their commitment to unparalleled world class standards of product and services," said Grant L. Kelley, CEO of Colony Capital Asia.

Colony said it plans to maintain all operations under the current flags and would look for opportunities to selectively grow the franchise, especially in Asia.

Willkie Farr & Gallagher LLP and White and Case LLP acted as legal advisors, and CIBC World Markets was the financial advisor to Colony.

About Colony Capital

Colony Capital, LLC is a private, international investment firm focusing primarily on real estate-related assets and operating companies. Since 1991, Colony Capital has invested more than $15 billion in over 8,000 assets through various corporate, portfolio and complex property transactions. The firm owns the legendary Costa Smeralda resort in Sardinia, Italy and Hotel Guanahani in St. Barts. Colonys other investments in exclusive leisure lifestyle and resort properties have included the Amanresorts hotel chain, Londons Savoy Group, the Orchid at Mauna Lani on Hawaiis Big Island, The Stanhope Hotel in New York City, the "W" in Honolulu, Resorts International in Atlantic City, Atlantic City Hilton, Las Vegas Hilton and Accor Casinos in Europe.

Colony has a staff of more than 110 and is headquartered in Los Angeles, with offices in New York, Boston, Hawaii, Paris, London, Madrid, Rome, Beirut, Hong Kong, Tokyo, Taipei, Shanghai and Seoul. Colony is led by its founder and chairman Thomas J. Barrack, Jr., and in Asia by Grant L. Kelley. For additional information, visit www.colonyinc.com.

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