NEW YORK, April 24 /PRNewswire/ -- 3128012 Nova Scotia Limited (the "AcquisitionCo"), a Nova Scotia corporation owned by affiliates of Kingdom Hotels International and Colony Capital, LLC, announced today that it has increased the price of its offer to purchase any and all of the outstanding 3.75% Convertible Senior Notes due 2023 (CUSIP Nos. 305204 AA 7 and 305204 AB 5) (the "Convertible Notes") issued by Fairmont Hotels & Resorts Inc. ("Fairmont") (NYSE: FHR; TSX) by $2.50 for each $1,000 principal amount of Convertible Notes tendered. AcquisitionCo is now offering to purchase each $1,000 principal amount of Convertible Notes at a purchase price of $1,213.93. As previously announced by Fairmont, the increase in the offering price was made in connection with the resolution of an objection by certain holders of the Convertible Notes to the plan of arrangement (the "Arrangement"), recently approved by the Ontario Superior Court of Justice, pursuant to which, among other things, AcquisitionCo will acquire all of the outstanding Fairmont common shares for $45.00 in cash per share. The tender offer (the "Offer") also has been extended until May 10, 2006 and will now expire at 5:00 pm, New York City time, on May 10, 2006, unless further extended or terminated (the "expiration time"). AcquisitionCo currently is targeting the second week in May for the completion of its financing arrangements for, and consummation of the transactions contemplated by, the Arrangement, subject to the timely satisfaction or waiver of the conditions to closing set forth in the Acquisition Agreement previously entered into by Fairmont and AcquisitionCo. The Offer, as revised, is being made upon the terms and conditions in the Offer to Purchase and related Letter of Transmittal, dated March 31, 2006. Tenders of the Convertible Notes may be withdrawn at any time prior to the extended expiration time. Other terms of the Offer remain unchanged. As of 4:00 pm, New York City time, on April 24, 2006, $13,379,000 aggregate principal amount of the $270,000,000 aggregate principal amount of issued and outstanding Convertible Notes had been tendered for purchase by AcquisitionCo. In addition, AcquisitionCo has been advised by Fairmont that, in connection with the foregoing resolution, holders of approximately $144,944,000 aggregate principal amount of the Convertible Notes, which represents approximately 54% of the aggregate principal amount of issued and outstanding Convertible Notes, have committed to tender their Convertible Notes under the revised Offer. As discussed in the Offer materials, none of AcquisitionCo or Fairmont (or their respective management or the board of directors), the Information Agent, the Depositary or their respective affiliates makes any recommendation to any holder of any of the Convertible Notes as to whether to tender any such Convertible Notes. This press release is merely a notification of the increase in consideration and extension of the expiration time of the Offer and is neither an offer to purchase nor a solicitation of an offer to sell the Convertible Notes. The Offer, as revised, is being made only pursuant to the Offer to Purchase and related Letter of Transmittal dated March 31, 2006, and the Amendment and Supplement to the Offer to Purchase dated April 24, 2006, which is being disseminated to holders of the Convertibles Notes. Questions regarding the Offer should be directed to Global Bondholder Services Corporation, the Information Agent, by telephone at (866) 470-3700 (toll free), (212) 430-3774 (call collect) or in writing to 65 Broadway -- Suite 704, New York, NY 10006, Attention: Kam Ng, or to The Bank of New York, the Depositary, by telephone at (212) 815-3738, or in writing to the Corporate Trust Operations, Reorganization Unit, 101 Barclay Street -- 7 East, New York, NY 10286, Attention: Evangeline R. Gonzales. DATASOURCE: 3128012 Nova Scotia Limited CONTACT: Kam Ng of Global Bondholder Services, 1-866-470-3700

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