Redemption or Purchase of Own Shares

Out of Capital

European Development Company (Hotels) Limited

Notice is hereby given pursuant to Section 175 of the Companies Act 1985 that on 13th July 2004 the above named Company approved the payment of £400,000 out of capital for the purpose of purchasing 30 of its own Ordinary Shares of 50 pence each; that the Statutory Declaration of the Directors and the Auditors’ Report required by Section 173 of the Companies Act 1985 are available for inspection at the Company’s registered office (Suite 1, 343 Union Street, Aberdeen); and that any creditor of the Company may at any time within the 5 weeks immediately following the aforementioned date apply to the Court under Section 176 of the Companies Act 1985 for an order prohibiting the payment.

Alan Wallace, Director