Crescent Hydropolis Resorts PLC 19 January 2006 Crescent Hydropolis Resorts PLC Announcement 19th January 2006 The Directors of Crescent Hydropolis Resorts PLC (the Company) present their progress report today in respect of the Company's plans to erect Asia's first deepwater Hydropolis Hotel and Resort (Hydropolis Qingdao). On 13 October 2005, the Company entered into a Cooperation Agreement (the Agreement) with the People's Government of Laoshan District, Qingdao, China (Laoshan Government) as the first principal step in developing Hydropolis Qingdao. The Agreement called for the Company to complete its feasibility study for Hydropolis Qingdao within three (3) months of the date of the 13 October announcement for presentation to the Laoshan Government. On 9 January 2006, Mr Joachim Hauser, Hydropolis' principal architect and the Company's Executive Chairman, led a delegation of the Company and its advisers to Qingdao, including Mr Gerhard Tegtmeyer, Managing Director and CEO of SIBC GmbH (a subsidiary of UK-based Turner & Townsend) as proposed project managers for Hydropolis Qingdao, Mr Geert Vanbeveren, Vice President representing Siemens Business One, Mr Wu Yongxin, Vice President representing Siemens Limited (China), Mr Andreas Hallier, representing Ostsee-Kontor GmbH as the Company's expert in deep water marine construction and technologies, and Mr Detlef Loemker, adviser to the Company on international hotel management issues. On 17 January, the Company's delegates presented the feasibility study to a senior delegation of Chinese officials representing Laoshan and the People's Government of Qingdao City (Qingdao Government). Plans were presented for the three principal components of Hydropolis Qingdao, the underwater HydroPalaceTM, the land-based HydroTowerTM and the HydroShuttleTM service that will connect the two principal structures of the resort complex. Key statistics, including land site surveys, deepwater marine studies, surveys of shipbuilding facilities in China, financial cost projections and a detailed timetable for planning and constructing both the HydroPalace and HydroTower components of the project were discussed with Chinese officials at length. The Company has fulfilled its obligations in respect of the Agreement and the initial feasibility study will now proceed for licensing authority and approvals to the Laoshan Government, then to the Qingdao Government, and finally to the appropriate governmental authorities in Beijing. The Directors note that the Agreement had called for Laoshan to assist the Company in locating a suitable marine site for the HydroPalace, and a corresponding location to erect the HydroTower. Both objectives have been achieved. The Agreement further provided that upon approval of a suitable location for Hydropolis Qingdao, the offshore marine location and land site would be contractually offered to the Company and its wholly owned subsidiary companies on a long-term lease basis (the Land Lease). This phase of negotiations between the Company and Laoshan are now in progress. Mr Joachim Kundt, Executive Vice President of Siemens AG in charge of International Operations for Africa, the Middle East and CIS States, is a director of the Company. For further information contact:- Joachim Hauser, Executive Chairman Joachim.Hauser@crescent-hydropolis.com - or - Mansoor Ijaz, Chief Executive Mansoor.Ijaz@crescent-hydropolis.com 19 January 2006 This information is provided by RNS The company news service from the London Stock Exchange