RNS Number:5222T
Hichens Harrison & Co PLC
19 December 2003





19th December 2003



                                 PRESS RELEASE



On the 9th October 2003, David Kirch, controlling shareholder of Channel Hotels
& Properties Limited ("Channel Hotels"), publicly stated that he was planning an
offer for Property Acquisition & Management Limited ("PAM"). In that statement,
Mr Kirch indicated that he was not prepared to offer more than 55p per ordinary
share. Channel Hotels holds approximately 29.9% of the total voting rights of
PAM through holdings of both ordinary shares and preference shares.



The statement made by Mr Kirch on 10 October constitutes a "no increase"
statement for the purpose of Rule 32.2 of the City Code on Takeovers & Mergers
("the City Code"). As a result, and as was explained by the Panel Executive to
Mr Kirch and accepted by Mr Kirch on 9 October, Channel Hotels would not be
permitted to make an offer for PAM at above 55p per ordinary share. In addition,
the Panel Executive subsequently ruled that Channel Hotels would only be able to
make an offer for PAM at above 55p per ordinary share three months after it had
terminated discussions with PAM.



Following discussions between Mr Kirch and PAM, the parties reached agreement in
principle on the terms of an offer at 75p per ordinary share, 20p of which was
to be deferred. The Panel Executive has ruled that, as explained previously to
Mr Kirch, this would be in breach of the no increase statement made on 9
October.



In light of the above, Channel Hotels hereby announces that it is terminating
discussions with PAM and, in the circumstances, it is prohibited under Rule 2.8
of the City Code from announcing an offer for PAM for a period of six months,
save to the extent that there has occurred an event in respect of which it has
specifically reserved the right to do otherwise. Channel Hotels hereby reserves
the right to announce a recommended offer for PAM prior to the expiry of the six
month period although, in the light of the Panel Executive's ruling as set out
above, it may only announce a recommended offer for PAM at a price above 55p per
ordinary share three months after the date of this announcement.






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