The leading developer and Government of Montenegro team up for the Lustica project.

Orascom Development Holding AG plans to build a fully integrated town covering a total area of 6.8million square meters in Lustica, in the municipality of Tivat on the Mediterranean's Traste Bay.

The project will create 2,350 residential units, hotels, a town centre, a marina on the Adriatic Sea and an 18-hole golf course. The first phase is expected to be open by 2015.

Orascom Development will retain a 90 per cent stake in Lustica Development AD Podgorica, while the Government of Montenegro will hold the balance.

This project is Orascom Development's third in Europe and is a further extension of the company's integrated town model. Now operating in nine countries including Switzerland, United Kingdom, Egypt, Oman, Morocco, UAE, Mauritius, Jordan and Montenegro, the group portfolio covers approximately 141 million square meters.

Orascom Development's flagship town is El Gouna on the Red Sea, Egypt. It celebrated its 20th anniversary in 2009.

A spokesperson is available for comment.

For further information please contact: Laura Collins laura.collins@rooster.co.uk +44 (0)20 7953 7519

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About Orascom Development Holding AG Orascom Development Holding AG (Orascom Development) is a leading developer of fully integrated towns that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of projects is spread over nine jurisdictions, with primary focus on touristic towns and recently affordable housing.

Orascom Touristic Establishments (OTE) was established in1989 setting the first step in building the Group's track record in the development of integrated towns. After some name changes and reorganization, the main business was held under Orascom Hotels & Development (OHD). Since the settlement of the public exchange offer by Orascom Development for OHD, Orascom Development became the new parent of OHD. Orascom Development has a dual listing, with a primary listing on the main board of the SIX Swiss Exchange (Switzerland) and a secondary listing on the EGX (Egypt Stock Exchange). The company's shares are fully fungible (with the same ISIN code) and can be traded on both stock exchanges in Swiss Francs.

Today, Orascom Development operates in nine jurisdictions (Switzerland, United Kingdom, Egypt, Oman, Morocco, UAE, Mauritius, Jordan and Montenegro) and is continuously seeking development opportunities in untapped yet attractive locations all over the world. The Group has four existing projects: El Gouna, the flagship project, a fully-fledged town on the Red Sea coast (Egypt). Taba Heights, on the Sinai Peninsula (Egypt), is the Group's second tourism destination following El Gouna's business model. The Cove (Ras Al Khaimah, UAE) is the Group's first development experience outside Egypt. Haram City, an integrated town dedicated to affordable housing in Egypt, catering for the mass population.

For more information please see www.orascomhd.com