ODH ("Orascom Development Holding") (SIX ODHN.SW), (EGX ODHN.EY) has released its consolidated financial results for its six Months ended 30^th of June 2016.

Orascom Development Holding (ODH) achieves turnover of CHF 109.4 million and adjusted EBITDA of CHF 8.1 million during difficult first half-year 2016.

- Progressing with the implementation of a new destination based structure, ultimately improving efficiency and transparency

- Took over the full ownership of Citadel Azur; a top performing, five-star hotel with 514 rooms in the Red Sea

- Oman and UAE's hotels continue their positive performance, but hotels in Egypt suffer from travel bans

- El Gouna most resilient destination in Egypt

- Value of contracted real estate units reached CHF 57.4 million, with contributions coming from El Gouna, Jebel Sifah and Montenegro

- World renowned luxury hotel brand The Chedi comes to Luštica Bay/Montenegro's first hotel

Altdorf, 15 August 2016 - Orascom Development Holding (ODH) was again confronted with a difficult environment that was influenced by ongoing travel bans as well as political and economic uncertainty in key markets. Total revenues decreased by 33.5% to CHF 109.4 million compared to CHF 164.5 million in 1H 2015, mainly due to the strategic decision to become more selective with land sales which amounted to CHF 42.8 million in the comparative period as well as lower hotel revenues in Egypt. In addition, results were impacted by currency losses in the amount of CHF 10.0 million. Gross profit reached CHF 7.0 million and the net loss attributable to shareholders for the reporting period amounted to CHF 41.3 million compared to a net profit of CHF 4.0 million a year ago. On the other hand, Adj. EBITDA for the period remained positive reaching CHF 8.1 million during 1H 2016.

Oman and UAE's hotels continue their positive performance while hotel segment revenues still suffer from decline in Egypt's tourism revenues

Overall, total hotel segment revenues decreased to CHF 48.6 million in 1H 2016 compared to CHF 58.5 million in 1H 2015.

The hotels in the Gulf region continued their positive performance. In Oman, huge demand was acknowledged for Salalah while we are speeding up the construction activities of Al Fanar hotel's expansion to include 84 new rooms to the existing hotel portfolio, bringing its total room count to 302 by December 2016. Omani hotels reached a revenue growth of 53.6% from CHF 8.9 million in 1H 2015 to CHF 13.3 million in 1H 2016 and the occupancy rate increased from 45% in 1H 2015 to 64% in 1H 2016. Similarly, in UAE, The Cove Rotana maintained its momentum and reported a revenue increase of 6.8% growing from CHF 12.1 million in 1H 2015 to CHF 12.9 million in 1H 2016 and occupancy rate increased from 70% to 74% in 1H 2016.

In Egypt, the tourism sector is suffering from the continued travel bans from Russia and some European countries. Egypt's tourist arrivals declined nearly 60% y-o-y in June 2016. However, El Gouna's diversified market segmentation limited the magnitude of this industry stance to only a 14 percent point decline in occupancy from 65% in 1H 2015 to 51% in the reporting period. The new Ancient Sand Hotel in El Gouna with 56 rooms and 120 hotel apartments were opened in April 2016 reflecting the continuing development of the flagship destination. In Makadi, full ownership of Citadel Azur, one of our top performing five star hotels with 514 rooms, was taken in July 2016. In Taba Heights, demand picked up during the quarter which led to the re-opening of 160 rooms in the Strand Beach & Golf Resort in July 2016 out of the 503 rooms. Total occupancy of the available rooms increased to 21% in 1H 2016 vs. 15% in 1H 2015. Taba remains the most challenging destination to date given the extended travel bans to Sinai.

Advancing real estate and town management developments in Montenegro and Oman, speeding up construction progress and adding liveliness to the destinations.

Real estate revenues reached CHF 32.1 million in 1H 2016 compared to CHF 41.1 million in 1H 2015. The Group's total value of contracted units in 1H 2016 reached CHF 57.4 million compared to CHF 69.5 million in 1H 2015. Total deferred revenue from real estate that is yet to be recognized until 2018 reached CHF 148.5 million in 1H 2016 compared to CHF 144.9 million in 1H 2015.

El Gouna remains the most important contributor to the Group's sales value, whereby we launched a new project called Fanadir Bay in April 2016 with a total inventory of USD 60.0 million and we were able to sell 63% of the project in only two months from its launch. In Egypt, we continued with the the accelerated pace of construction, delivering more units in El Gouna and were able to increase the real estate revenues coming from Egypt by 40% to reach CHF 25.3 million in 1H 2016 vs. CHF 18.1 million in 1H 2015. In Makadi, we are progressing with the construction of the destination's club house.

Lustica Bay, Montenegro, continued its positive momentum recording total sales of CHF 5.7 million in 1H 2016 compared to CHF 1.5 million during the same period last year. In Lustica Bay, Montenegro, we are progressing ahead of schedule with the construction of the new F and G building comprising 88 apartments and the marina's superstructure is heading towards completion. In Oman, we are moving on track with the development of the Sifah Golf course, planned to be launched in Q4 2016. We have also put strong focus and efforts this quarter in developing the liveliness of our destinations, whereby we have rented 11 new shops in Salalah and Sifah, planning to open a new restaurant in Q3 2016 in Sifah and are finalising an agreement with a multinational diving center to open its doors there as well. On the other hand, we have partnered up with investors to develop new sub projects that will add critical mass to our destinations, including two Eco lodge Huts in Sifah and Salalah with a start-up capacity of 42 huts.

Outlook for FY 2016
Corporate
As part of the Group's new management strategy, the company will re-organize its current segment structure to a destination based structure, pushing more authority and responsibility on the ground of each destination, to better increase operational efficiency, shorter the decision making process and improve market transparency.

The company finalized the debt refinancing term sheet with all the banks and is working on finalizing the agreements expected during Q3 2016

Real Estate
We will continue executing on the new development strategy, offering a wider range of products across our destinations. In El Gouna, we are planning to launch the first phase of a new real estate project in Q4 2016. We will also launch new products in Fayoum with a total inventory of USD 3.4 million in Q4 2016. In Oman, we are planning to launch a new real estate project in Sifah during Q4 2016. We are also progressing with the launch of phase 1 of the Sifah Golf course and the waterpark construction. In Montenegro, we are speeding up construction progress expecting to deliver the F&G buildings in early 2017.

Hotels
In Montenegro, we are planning to start the construction in 2016 of the first hotel in Lustica Bay headed by luxury hotel brand The Chedi Group. In Oman, we are finalizing the construction of Al Fanar extension to be launched in December 2016. In Egypt, we are finalizing the construction of Byoum lakeside hotel in Fayoum, planned to open on the 1^st of September. We are also continuing to implement strict cost cutting measures across our hotels in Egypt. In UAE, we are finalizing the construction of The Cove Rotana extension, adding 145 rooms to open during Q1 2017.