Cooperation Agreement in PRC

Crescent Hydropolis Resorts PLC 13 October 2005 CRESENT HYDROPOLIS RESORTS PLC ANNOUNCEMENT The Directors of Crescent Hydropolis Resorts PLC (the Company) announce today that the Company has entered into a Cooperation Agreement (the Agreement) with the People's Government of Laoshan District, Qingdao, China (Laoshan) as the first principal step in a development plan aimed at erecting Asia's first deepwater Hydropolis Hotel and Resort (Hydropolis Qingdao) prior to the start of the 2008 Beijing Summer Olympic Games. The Laoshan District of Qingdao, a resort city centrally located between Beijing, Shanghai and Seoul, South Korea on China's eastern coastline and renowned for its green seas and picturesque scenery, will host the Sailing Regattas at the Summer Olympics. Hydropolis Qingdao will feature a Hydropalace(TM) and Landstation gateway. Hydroyachts(TM) will connect the two structures by ferrying guests and visitors from the Landstation's onshore piers to the underwater Hydropalace. Hydropolis Qingdao's design plan as conceived by Joachim Hauser, chief architect and the Company's Executive Chairman, calls for 200 ultra-luxury suites, the world's largest underwater ballroom, an oceanic museum, multiple conference and meeting rooms, underwater restaurants, a revolving Sea View restaurant with a visitors viewing platform above the Hydropalace and bar/nightclub facilities. The Agreement calls for Laoshan to assist the Company in locating a suitable marine site for the Hydropalace, and the corresponding location onshore for erecting the Landstation. The Agreement further provides that upon approval of a suitable location for Hydropolis Qingdao by local and provincial government authorities, the offshore marine location and land site will be contractually offered to the Company and its wholly owned subsidiary companies (in formation, the Subsidiaries) on a long-term lease basis (the Land Lease). Management of the Company have viewed locations along the Laoshan District's coast and have narrowed the search to two acceptable locations. The Agreement calls for the Company to complete its feasibility study for Hydropolis Qingdao within three (3) months of the date of this announcement, including a specific timetable that allows for the commencement of hotel operations prior to the Opening Ceremony of the 2008 Summer Olympic Games. SIBC GmbH, formerly Siemens Industrial Building Consultants and now a wholly owned subsidiary of Turner & Townsend, and Siemens AG have agreed to assist the Company in developing the feasibility study and its component parts. SIBC has agreed in principle to serve as project manager for the Hydropolis Qingdao project and had its representative present at the signing ceremony in Qingdao today. 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:- Mansoor Ijaz Tel:- 07717 333 137 Chief Executive 13 October 2005 This information is provided by RNS The company news service from the London Stock Exchange