Fairmont acquisition completed

Fairmont’s outstanding common shares have been acquired by a company owned by affiliates of Kingdom Hotels International and Colony Capital. Under the terms of the
Plan of Arrangement, the Company’s shareholders will receive US$45.00 in cash
for each Fairmont common share held. With the completion of the transaction,
the Fairmont and Raffles’ portfolios will now be combined, transforming the
companies into a global hotel leader headquartered in Toronto, with 120 hotels
in 23 countries under four brands (Fairmont, Raffles, Swiss™tel and Delta).

  “We are very excited about this transaction as it creates an expanded
foundation from which to build on our legacy, grow our brand and create
significant opportunities for our employees. With an expanding global
portfolio of exceptional resorts and gateway city properties, our guests will
be exposed to new, exciting destinations with different cultures,” said
William R. Fatt, Fairmont’s Chief Executive Officer. “We look forward to
working with our partners who are committed to building on the success of our
  HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud of Kingdom said, “As a
long time investor in Fairmont, Kingdom has recognized the Company’s value and
potential, which is attributable to the dedication and professionalism of its
management and employees. We look forward to working with Colony to build on
the success of these brands and to further expand this irreplaceable
collection of properties around the world.”
  “Our partnership with HRH Prince Alwaleed in this global hotel company
fulfills our mission to invest with world class partners in irreplaceable
assets with proven management teams,” commented Thomas J. Barrack, Jr.,
Chairman and Chief Executive Officer of Colony. “Fairmont and Raffles are an
excellent strategic fit with rich histories, creating a brand-focused company
with an expansive global footprint that is dedicated to serve as the
destination of choice for the world’s most discriminating travelers.”
  The Purchaser’s tender offer for Fairmont’s outstanding 3.75% Convertible
Senior Notes due 2023 (the “Notes”) expired at 5:00 p.m. EST on May 10, 2006.
The Purchaser has advised Fairmont that, at the closing of the tender offer,
$267 million aggregate principal amount, or approximately 99%, of the $270
million aggregate principal amount of issued and outstanding Notes had been
tendered for purchase. Fairmont intends to satisfy any conversion on the
remaining outstanding Notes by way of a cash payment.