Jones Lang LaSalle Hotels has pleasure in announcing today that Raffles Corporation (Thailand) Co and Andaman Peninsula Company Ltd have entered into a joint venture and management agreement to develop and for Raffles to operate a 79-room Raffles 5-star international luxury resort and 30 upmarket residential villas for sale in Phuket, Thailand. The resort, due to open in 2006 is located on the western tip of the Andaman Peninsula just south of Kata Noi. The ocean front site offers uninterrupted views over the Andaman Sea.

Mr Robert Avasadanond, Managing Director of Andaman Peninsula Co Ltd said, "We are delighted to have formed such a strong partnership with Raffles International. Our aim is to create a first class luxury resort with prestigious residential villas. The Raffles branding and their international marketing and operational expertise will allow us to do this. The development will feature a luxury resort and villas with spa and treatment rooms, restaurants, bars and recreational facilities. The residential villas for sale will all all feature outstanding views of the Andaman Sea with many having full sea frontage. Villa owners will also have the option to have their villas managed by Raffles. We are currently accepting expressions of interest for the residential villas from interested parties."

Craig Collins, Senior Vice President of Jones Lang LaSalle Hotels who negotiated the transaction commented "Phuket is a destination that has experienced exceptional growth over the past five years. Featuring an international airport, beautiful beaches and many golf courses, Phuket attracts some 3.5 million domestic and international visitors per year. Approximately half of the international visitors to Phuket are European. Because of the attractions that Phuket offers we expect it to remain one of Asia's premier resort locations."

Mr Collins also said, "Over the past six months, there has been a high level of international investor interest in the Thailand tourism industry. Jones Lang LaSalle Hotels has negotiated three major transactions over the past four months involving tourism properties. Thailand is seen by many international tourism investors as a country of great beauty, a growing economy and most importantly a destination of increasing international visitor arrivals. I am very confident we will see many more transactions involving the inflow of international capital over the next 12 months for hotel and resort properties in Thailand."