GAP Developments **BOND ISSUE â

Gap Developments plc – BOND ISSUE 7% MATURING 2013

Gap Developments plc announce a public issue of Lm15 million or EUR35 million in 7% secured bonds. Offered at a nominal value of Lm100 and EUR100 per bond at par, maturing in 2013, but redeemable in whole or in part at the company’s option in 2011 and 2012.

The proceeds of the bond issue will be utilised to part-finance the Fort Cambridge area development, formerly occupied by the Holiday Inn Crowne Plaza Hotel, in Tigne, Sliema. The proposed residential development envisages three blocks of up to 23 floors consisting of approximately 340 luxury apartments. The development will also include the construction of four levels of car park spaces at basement level.

For more information one should refer to the Prospectus dated 21 March 2007, copies of which, together with Application Forms, are available at our offices.  Applications for the Bonds may be made for a minimum of Lm1,000 and in multiples of Lm100 thereafter in the case of the Malta Liri Bonds, and for a minimum of €2,500 and in multiples of €100 thereafter, in the case of the Euro Bonds. Subscriptions open on Monday 16 April 2007 and close on Friday 20 April 2007. However, the Bond Issue may close earlier at the discretion of the Issuer, if fully subscribed.  Application has been made for the Bonds to be listed on the Alternative Companies List of the Malta Stock Exchange.