Mövenpick Hotels & Resorts has signed a management contract with Abraj Al-Mohammadiah for Real Estate Development Company Limited for the operation and management of a new five-star hotel in Madinah.

After recently taking over the management of the five-star Mövenpick Resort Al Nawras Island in Jeddah, Mövenpick Hotels & Resorts started their second operation in Saudi Arabia: the 223-room Madinah Mövenpick Hotel. The hotel is located close to the Green Dome, and within walking distance of the prophet's Mosque in the Holy City of Madinah.

In early September, Dr. Mohammad Al Mutabagani, Chairman of Abraj Al Mohammadiah for Real Estate Development Company Limited, and Mr. Andreas Mattmüller, Senior Vice-President Middle East of the Swiss-based international group Mövenpick Hotels & Resorts, signed a management contract for a five-star hotel project, valued at over 50 million US dollars. The new Madinah Mövenpick Hotel will be operational by early November 2002. This new hotel is just 3 minutes walk from the Prophet's Holly Mosque and directly adjacent to al Baqie site.

Mr. Andreas Mattmueller of Mövenpick Hotels & Resorts commented "I am particularly pleased with this new development, which will now allow Mövenpick Hotels & Resorts to create a cluster of hotels in the Kingdom of Saudi Arabia, in line with our development strategy for the region".

The Madinah Moevenpick Hotel, provides exclusive comfort and convenience, offering 160 deluxe rooms and 63 spacious suites including a Royal Suite to satisfy the most discerning traveler. Most rooms have a direct view of the Green Dome and Al Baqie. Hotel services and facilities include among others: rooms for wheel-chair access, non-smoking rooms, extensive parking area, limousine transfers and VIP services.

The Madinah Mövenpick Hotel will also be linked directly to a shopping mall, covering an area of 4,500 square metres and consisting of 70 prominent shops featuring international and local brands.

Mövenpick's excellence in gastronomy lends itself wonderfully to the hotel and provides an exquisite, multicultural dining experience. A Mövenpick restaurant serving international cuisine, a lobby lounge offering fresh coffees and home-made pastries and two speciality restaurants - one Moroccan and one Iranian-themed, all offering a variety of culinary experiences and authentic ambience.

Conference and banquet facilities include a large banquet hall with a capacity of 350 guests, and three additional meeting rooms for 15 to 60 guests. The venues are ideal for banquets, prestigious weddings, conferences and seminars.

Dr. Motabagani commented by saying that "the hotel's facilities were designed to provide luxurious comfort and services to the local Madinah community and contribute to making the Madinah Mövenpick Hotel the most attractive city destination, totally orientated to catering to those on pilgrimage and on business".

Jean-Gabriel Peres, President & CEO of Mövenpick Hotels & Resorts further stated: "This is a valuable and important addition to our rapidly expanding portfolio in the Middle East, which recently saw the openings of our new hotels in Cairo-Media City, Beirut, the recent extension

of our Dead Sea Resort & Spa, the extension of the Mövenpick Resort El Quseir, a new resort project in El Alamein due to open in spring 2003 as well as the recently opened Mövenpick Resort Al Nawras Island in Jeddah".