New Palazzo Versace Resort in Dubai to commence early 2006

The Versace Group together with Australian Property Developer, Sunland Group Limited, who opened the first Palazzo Versace on the Gold Coast in September 2000, identified the Middle East as the next potential region for a Versace resort - the ultimate experience in luxury vacationing. A joint venture was subsequently drawn up between Sunland Group Limited and Emirates International Holdings and in December 2004 the centrally located waterfront site on Dubai Creek was identified as the most suitable location. In March 2005 Emirates International Holdings entered into an agreement with Dubai Properties to acquire the land for the development of the resort.

The Palazzo Versace Dubai will include c. 215 suites, restaurants, a spa and 204 luxury villas all conceptualized by the Versace Group and Sunland Group Limited and fully furnished with a specially designed line of products from the Versace Home Collection. Plans for the multi million dollar Palazzo Versace will be refined by September, with the view to commencing construction by early 2006 and to open in 2008.

Managing Director of the Versace Group, Dr. Giancarlo Di Risio said "The idea of bringing the Versace philosophy of luxury and style to the ultimate in resort vacationing is a natural combination. We were the first luxury group to develop a branded hotel and this is an important part of the Group's strategy for the future".

President of the Versace Group, Dr. Santo Versace added 'The design of the Palazzo Versace will include all of the trademarks of Versace style and glamour while incorporating the needs of the local environment. Palazzo Versace will provide the ultimate destination for those wanting a taste of the 'Versace' lifestyle within a dynamic and modern environment like Dubai."

Sunland Joint Managing Director, Mr Soheil Abedian, stated 'As a result of the Versace Group's indelible imprint in the world of fashion, today the 'Versace' name is synonymous for luxury, glamour and above all exceptional quality. These are the attributes that characterize the Palazzo Versace resorts in Australia and in Dubai. It is an ambitious collaboration, but one which is backed by the enthusiasm and passion of two partners with a like-minded commitment to innovation and excellence."

"With buoyant markets and an enhanced regulatory framework in the UAE, the tourism and hospitality industry has been a major area of growth in recent years. With Dubai at the forefront of development, we are sure that the Palazzo Versace Hotel and Condominium Resort will soon develop into an exclusive location for tourists and residents in the city," said Reza Jaffar, Managing Director, Emirates International Holdings.

The joint venture of Sunland and Emirates International Holdings, will be known as Emirates Sunland Group and will be responsible for the development and management of Palazzo Versace Dubai. The Versace Group will be responsible for all aspects of content, design and style, including architecture, interiors, furnishings and amenities using specially designed items from the various Versace collections.