Http://www.jollyhotels.com Milan, 11/10/2005

London, 14/10/2005

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Mission - Jolly Hotels aims for customer satisfaction, and focuses particularly on individual customers in the medium-upper segments of every sector of the hotel and convention markets in Italy and abroad.

-It offers a constant, distinct and recognisable service both at chain and individual hotel level, through brand diversification too, giving a perception of excellent quality in its chosen market.

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Values- Customer orientation- Profit and profitability- Staff competencies and motivation- Ethical relations with society

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BrandsJolly Hotels Classic: The Jolly Hotels Classic are the heart of the Jolly Hotels offer. Located in 29 Italian cities, they are the ideal destination for all those in search of comfort and professional service; in short, the reliability that Jolly Hotels have always guaranteed in all the cities of Italy. The Jolly Hotels Classic also includes several hotels affiliated under franchising agreements, which have fully adopted the Jolly Hotels standards of service and product. This has allowed the leading hotel Company in Italy to further expand its national coverage.

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BrandsJolly Hotels Master: The Jolly Hotels Master are the top hotels offered by the leading Italian hotel chain. Located in the centre of the main Italian cities and some of the most prestigious European destinations, the Jolly Hotels Master are distinguished by their refinement and luxury. The Master Line hotels are aimed at demanding guests on business or vacation who are accustomed to the highest standards of 4 star international hospitality.

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The Group

Jolly Hotels Spa

100% 100% 100%

J. H. USA Management Inc. J. H. UK Ltd. J. H. St Ermin's B.V.

100%

Jolly Hotels Holland N.V.

J. H. France S.A. 99.99% 69.57% J. H. USA Inc. 30.43%

J. H. Belgio S.A. 99.99% 3.57% J. H. Deutchland Gmbh 96.43%

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The major shareholders(at 11.05.2005 - ordinary shares)

Shreholders No. Of Shares %1.0 La Bricola S.p.a. *2.0 N.H. Italia S.r.l. 3.0 Zanuso Ugo Maria * *4.0 Schroders Inv.Management Ltd5.0 Zanuso Francesca

TOTAL

* Zanuso Ugo and Zanuso Francesca are shareholders of La Bricola S.p.a. in equal parts

** 530,101 shares held by Zanuso Francesca with beneficial interest of Zanuso Ugo Maria

78.67%

5.84%

5,973,430 4,133,954 2,450,986 1,951,933

29.98%

1,164,060

15,674,363

20.75%12.30%

9.80%

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HOTELSTotal Italy Abroad

Owned Hotels 19 15 4

Operated Hotels 20 17 3

Franchising 6 6 0

Total 45 38 7

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FRANCHISEES

PARMA

MESSINA

CATANIA

SIRACUSA

AGRIGENTO

CAGLIARI

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Revenue breakdown(in euro/000)

2000 2001 2002

Rooms 138,702 68.9% 151,166 67.9% 155,092 68.7% 152,407 69.3% 160,687 69.3%

F & B 45,456 22.6% 53,977 24.3% 54,744 24.3% 53,318 24.2% 56,953 24.6%

Other services 17,018 8.5% 17,384 7.8% 15,805 7.0% 14,240 6.5% 14,305 6.2%

Total 201,176 100.0% 222,527 100.0% 225,641 100.0% 219,965 100.0% 231,945 100.0%

2003 2004

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Bednights and meals(in thousands of units)

2000 2001 2002 2003 2004

BednightsIndividuals 1,647 1,719 1,765 1,814 1,917 Groups 403 375 376 364 410 Total 2,050 2,094 2,141 2,178 2,327

MealsIndividuals 800 928 885 849 893 Groups 253 202 212 207 217 Total 1,053 1,130 1,097 1,056 1,110

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No. of rooms directly operated

Rooms

Occupancy rate in %

20042001 2003

6574

66.4

6822

63.7

2002

64.3

6812

66.5

6916

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Average room rate(in euro)

101 102 99 99 102

10

20

30

40

50

60

70

80

90

100

110

2001 2002 2003 2004 I H 2005

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REVPAR(revenue per available room in euro)

67.33 65.37 63.27 65.86 68.30

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2001 2002 2003 2004 I H 2005

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REVPAR analysis(in euro)

Brussels

Amsterdam

Paris

New York (Usd)

London (Gbp)

Cologne

Berlin

Italy

Group

60.41

63.80

103.85

122.29

100.68

66.39

I H 2005

124.65

102.61

57.45

2002

65.62

92.64

134.29

65.60

2001

58.85

44.60

-

62.17

67.33

45.31

31.43

61.04

65.37

46.59

2003

60.17

91.50

118.58

50.32

128.57

57.81

39.61

107.23

35.67

2004

61.35

98.13

122.61

68.30

93.81

57.20

61.59

65.86

131.21

60.56

45.24

60.89

63.27

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Room aging

19.00%

32.00%10.00%

39.00% < 3 years3 to 6 years6 to 9 years+ 9 years

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Payroll cost on revenues

39.16%40.23%

39.10%39.78%

40.09%40.73%

39.84%

41.28%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2001 2002 2003 2004

GroupItaly

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Headcount(average number of employees)

2,445

1,937

2,535

1,953

2,513

1,934

2,498

1,877

-

500

1,000

1,500

2,000

2,500

3,000

2001 2002 2003 2004

GroupItaly

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Group Profit and loss – Summary(in euro/000) Italian G.A.A.P.

REVENUES

EBITDA

EBIT

EBT

Net Profit-4.4%

2000

201,176 100.0%

45,435 22.6%

18,622 9.3%

13,877 6.9%

7,7733.9%

2001

222,527 100.0%

45,626 20.5%

15,434 6.9%

5,199 2.3%

(1,101)-0.5%

2002

225,641 100.0%

45,078 20.0%

12,591 5.6%

12,253

3,956

5.4%

1.8%

2003

219,965 100.0%

36,053 16.4%

3,887 1.8%

1,585 0.7%

(2,887)-1.3%

2004

231,945 100.0%

37,892

-2.0%

(10,137)

16.3%

4,2801.8%

(4,744)

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Group Profit and loss - Detail(in euro/000) Italian G.A.A.P.

2000 % 2001 % 2002 % 2003 % 2,004 %

Revenues from hotel services 201,176 100% 222,527 100% 225,641 100% 219,965 100% 231,945 100%Other revenues 3,034 2,541 2,862 3,512 1,900

204,210 102% 225,068 101% 228,503 101% 223,477 102% 233,845 101%

Operating costs 79,684 92,835 95,982 99,573 104,350Value added 124,526 62% 132,233 59% 132,521 59% 123,904 56% 129,495 56%

Payroll 79,091 86,607 87,443 87,851 91,603Gross operating profit (EBITDA) 45,435 23% 45,626 21% 45,078 20% 36,053 16% 37,892 16%

Depreciation and amortisation 26,813 30,192 32,487 32,166 33,612Operating income (EBIT) 18,622 9% 15,434 7% 12,591 6% 3,887 2% 4,280 2%

Financial charges (income), net (5,431) (12,808) (12,659) (11,631) (11,407)Income from property investments 1,282 1,956 1,973 1,880 1,806Extraordinary items, net (596) 617 10,348 7,449 577Income (loss) before taxes (EBT) 13,877 7% 5,199 2% 12,253 5% 1,585 1% (4,744) -2%

Income taxes 6,104 6,300 8,297 4,472 5,393Net income (loss) for the period 7,773 4% (1,101) 3,956 2% (2,887) -1% (10,137) -4%

Cash flow 34,586 17% 29,091 13% 36,443 16% 29,279 13% 23,475 10%

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Group Capital expenditure(in euro/000)

56,394

69,532

37,27332,830

29,378

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004

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Group Net borrowing(in thousands of euro)

37,527

90,632119,249

130,339

117,662

134,063

104,752

150,631

109,615

148,776

-

50,000

100,000

150,000

200,000

250,000

300,000

2000 2001 2002 2003 2004

ItalyAbroad

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FIRST HALFGroup Profit and loss - net borrowing

(in euro/000) (IAS/IFRS COMPLIANT)

I HALF 2005 I HALF 2004Revenues from hotel services 100.0% 100.0%Other revenues

117.4% 101.3%

Operating costsValue added 71.8% 57.7%

PayrollGross operating profit (EBITDA) 31.1% 18.2%

Depreciation and amortisationOperating income (EBIT) 17.6% 5.7%

Financial charges (income), netIncome (loss) before taxes (EBT) 11.5% 2.0%

Income taxesNet income (loss) for the period 4.3% -1.8%

Group net borrowing

4,941 (2,098)8,403 4,422

117,627

246,570 264,903

14,503 6,627

4,303 2,324

50,642 66,985

45,855 21,130

15,714 20,426

7,082 13,344

47,323 36,140

136,442

52,979 83,463

116,076 116,222 20,220 1,551

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FIRST HALF - SECOND QUARTEREBITDA - ANALYSIS

(in euro/000) (IAS/IFRS COMPLIANT)

II Q 2005 % II Q 2004 % I H 2005 % I H 2004 %

Revenues from hotel services 67,722 100% 65,931 100% 116,222 100% 116,076 100%Other revenues 19,491 835 20,220 1,551

87,213 129% 66,766 101% 136,442 117% 117,627 101%

Operating costs 28,195 26,813 52,979 50,642 Value added 59,018 87% 39,953 61% 83,463 72% 66,985 58%

Payroll 25,258 23,245 47,323 45,855 Gross operating profit (EBITDA) 33,760 50% 16,708 25% 36,140 31% 21,130 18%

Capital gain on the sale of F.A.(included on other revenues) (18,717) (15) (18,717) (15)Actuarial gain/loss on TFR (included on payroll) 1,162 (881) 1,177 (191)Adjusted EBITDA 16,205 24% 15,812 24% 18,600 16% 20,924 18%

MAIN INDICATORSOCCUPANCY RATE 73.7% 71.5% 66.9% 66.6%REVPAR 78.2 74.5 68.3 66.8

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