This is Banyan Tree’s twelfth flagship in its portfolio of upcoming properties in the Middle East and will complement the group’s current desert resort development in Ras Al Khaimah. “Our strategy for Ras Al Khaimah has been to offer our guests an Arabian desert experience and an exceptional beach resort. We are very pleased that this strategy has now been achieved and we are well positioned to offer our guests a unique taste of all that the Emirate has to offer,” said Banyan Tree Executive Chairman, Mr. Ho Kwon Ping.

Mr. Mahdhar Al Tamimi, General Manager of Saraya Islands, commented, “Our partnership with Banyan Tree, to operate a resort in one of the four Saraya Islands in the project, translates our commitment towards our clients and investors, to partner with the best in their fields of expertise. This includes offering and showcasing a selection of the finest hotels and resorts, along with retail, entertainment, leisure and sport facilities, in addition to luxurious residential units that cater for customers and business needs.”

Banyan Tree has chosen Saraya Islands due to being a distinct world class destination and strategic located between the majestic range of Hajjar Mountains and the azure sea of the Arabian Gulf. The project consists of four natural islands and a main village, occupying a five-and-a-half-kilometre stretch of land, together forming a lagoon framed by the islands and its corresponding mainland site of approximately 16 hectares, creating two different waterfront settings on the Ras Al Khaimah coast.

Saraya Islands will comprise six premium five-star hotels and resorts, a top-notch marina, palatial villas, villas of various types and sizes, lagoon view townhouses, waterfront terraced apartments, exotic bungalows, high quality retail, restaurants and entertainment outlets, a pedestrianised boulevard, indoor and outdoor sports facilities, pedestrian-friendly bridges, bicycle tracks and an amusement water park, in addition to five kilometres of sandy beaches, all set within a unique architectural landmark.

The Banyan Tree resort at Saraya Islands will be the first property in the Middle East that realises the Group’s “Villas in the Sky” concept, which will see the creation of 150 large-sized suites that will overlook the Arabian Gulf. Apart from Banyan Tree’s signature brand of Asian hospitality, the resort will also feature the award winning Banyan Tree Spa, a Banyan Tree Gallery and exquisite dining experiences. Both the architectural and interior design aspects of the resort will be undertaken by Banyan Tree’s in-house architectural division, Architrave Design and Planning. The development is slated for completion in late 2011.

These new developments are not expected to have any material financial impact on Banyan Tree’s earnings and its net tangible assets for 2007.