INVgolf / IAF Group and Loyalward resolve outstanding commercial issues

IAF Group PLC and Loyalward Group PLC resolve outstanding commercial issues

November 19, 2002 -- IAF Group PLC and Loyalward Group PLC announced today that they have resolved certain outstanding commercial issues between members of their respective groups which will result in IAF and associated parties becoming major shareholders in Loyalward.

In 1993 IAF procured performance bonds that supported Loyalward Limited's original bid for its development site at Cavo Sidero, Crete. As part of those arrangements it entered into an option to subscribe for 9.38% of Loyalward Ltd.'s share capital. In the intervening period certain issues arose over the detailed terms of the option and obligations of the parties.

Those issues have now been resolved. As a result, IAF will receive 487,500 shares in Loyalward Ltd. in return for subscription monies of Ł307,895. In accordance with Loyalward Group PLC's offer of August 25th, 1999 to the shareholders in Loyalward Ltd., arrangements have been made for those shares in Loyalward Ltd. to be acquired by Loyalward Group PLC for a total consideration of 975,000 fully-paid shares of Loyalward Group PLC.

IAF is already registered as the holder of 75,040 Loyalward Group PLC shares, as a result of a previous partial exercise of the option, so will hold an aggregate of 1,050,040 shares, representing 11.82% of Loyalward Group PLC's then issued share capital. Half of this holding will be held beneficially by IAF and the remainder as nominee.

The arrangements contain certain restrictions and undertakings including, inter alia, an undertaking by IAF that, other than for certain exceptions, it will not dispose of any of the 975,000 shares prior to December 31st, 2003. IAF has no current intention of disposing of any of the shares.

Loyalward Group PLC of the United Kingdom is the creator of the Cavo Sidero golf resort project on Crete, a EUR 750 million project. Loyalward is an OFEX listed company (symbol: LOY, ISIN: GB0008497975).

Loyalward's principal activity is the design, creation, development and management of tourist and leisure resorts. The company has to date concentrated its efforts on a 7,000-bed resort development on a peninsular site of approximately 26 square kilometres at Cavo Sidero in North East Crete for which it signed a long leasehold contract in July 1998.

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Sources: Insinger de Beaufort (Corporate Finance) Limited, trading as Insinger English Trust, a subsidiary of Bank Insinger de Beaufort N.V. Regulated by the FSA; OFEX; INV International Ltd.

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