QUEENSGATE WELL ON TRACK TO ACHIEVE YEAR-END NUMBERS

Tuesday, 12 May 2009 – Queensgate Hotels & Leisure, an AltX listed company is pleased to announce a solid revenue growth during the six months ended 28 February 2009 with the announcement of its interim financial results in Johannesburg today. The results for the period reflect headline earnings of R11.7 million, which translates to 0.78 headline earnings per share. Despite the global economic downturn, Queensgate is well positioned to benefit from a number of international sporting events to be hosted in South Africa and expect the expansion of its activities into hospitality business development will contribute significantly to future revenue generation.

“Earnings are in line with the budget and revised profit forecast that was published in February 2009, which has allowed for certain restructuring and integration costs following the acquisition of Queensgate Business Development and Queensgate Leisure Holdings during the period under review,” said Queensgate chief executive, Andrew Hubbard.

“From a budgetary perspective, management is therefore pleased with this set of results and are confident that our full year results are well on track to being achieved.” said Hubbard."

The six months under review has also seen management effectively contain costs across the business. Cash generated by operations for the period amounted to R31.7 million.

Queensgate Leisure is an established company that specialises in the hospitality and leisure sector in South Africa with strong global alliances. Local alliances include the partnership with Mvelaphanda. It currently operates the Radisson SAS Hotel Waterfront, Cape Town and Tinga Private Game Lodge, Kruger National Park amongst other hotels in South Africa. Queensgate Leisure is a hospitality services business which along with its accommodation offerings, Queensgate provides wellness and food and beverage options to suit the venues in question. Queensgate Business Development develops leisure properties for retail.