This has reference to the reports in a certain section of the press quoting industry sources to the effect that a large private equity firm is investing US$ 1 billion as Private Equity investment in Hotel LeelaVenture Limited.

While the Company has a policy of not commenting on unconfirmed reports or market speculation, we would like to deny the report and categorically state that the Company is not planning to have any private equity funding or equity infusion whatsoever in the near future.  It has already tied-up its funding plan to set-up the 5 hotels and resorts in Udaipur, Chennai, New Delhi, Hyderabad and Pune.

Issued by
Ms. Mithu Basu
Group Head - Corporate Communications
The Leela Palaces-Hotels-Resorts
Sahar, Andheri (East), Mumbai – 400 059, India
Tel. 00-91-22-6691 1052.
Fax: 00-91-6691 1476/1455
Cell: 98204 14732
E-mail : mithu.basu@theleela.com