September 1997 - The Budapest based Danubius Hotels Rt., one of Europe's largest and best known spa hotel chains, has recently acquired a majority stake of 85% in HungarHotels - a well-known company both in Hungary and abroad.

By finalising this deal, Danubius Hotels Rt. became the owner of 14 more hotels in Budapest and other parts of the country. With this acquisition, Danubius Hotels Rt. obtained further 3- and 4-star city and spa hotels and increased its room capacity by 157% (from 2188 to 5664).

The HungarHotels brand name will remain, but the two companies will operate under a single management structure. The Danubius Hotels Group now consists of the three following companies/brands (with a combined room capacity of 6298): · Danubius Hotels: These first-class hotels (10 units) are located in Budapest, near Lake Balaton and in Western Hungary. Almost all the hotels specialise in health & leisure facilities, spa treatments, sport & fitness centres, competitively-priced conference & meeting facilities for the business traveller, as well as incentive tourism. · HungarHotels: Its high-quality hotels (14 units) offer great opportunities either for relaxation or for business, quite similar to those of Danubius Hotels (except spa treatments), in Budapest, at Lake Balaton, or in some of the main Hungarian towns. · Danubius Beta Hotels: This company represents the budget class hotels (13 units) within the group for those who wish to be comfortable while spending less.

Danubius Hotels was transformed into a public limited company in 1991, and was fully privatised in 1993. The floatation of Danubius Hotels Rt. shares on the Budapest Stock Exchange commenced in December 1992. With the acquisition of HungarHotels, the share value hit an all-time high. This extraordinary increase is not only due to the economic results of 1996 but also to the improvement in the future profit-making capabilities of the company.

If you wish to have an overview of the hotels and services of Danubius Hotels or HungarHotels you can find both of them on Internet. You may reach them directly at www.hungary.net/danubius and www.hungary.net/hungarhotels or first begin with the Hungarian Tourism Web Site at www.rompage.hu and browse through the whole of Hungary.

For additional information contact:

Syilvia Turay, PR manager

Email: [email protected]