Accor Divests Most of its Stake in Club Mediterranee

On one hand, Accor sells today 16% of its stake at a price of 44.9 euros per share (last quoted price for Club Mediterranee shares on June 8 2006) to a group of investors bound up with a shareholders agreement of which Accor is part of.

On the other hand, Accor will sell in near future, in its best interests, 6.9% of Club Mediterranee. In this context, an agreement has already been signed with Generali France for a stake of 1.5%.

"After the divestment of the Compass shares and the Carlson Wagonlit Travel stake" said Gilles Pelisson, director and Chief Executive Officer "this disposal is another step to the refocusing on our two core businesses: hotels and services. The 2 year old partnership between the teams of both groups has been productive in terms of synergies. Additional progress is expected in the coming years".

In order to perpetuate the synergies achieved between both groups, Accor and Club Mediterranee signed a 3 year renewable purchasing and marketing partnership agreement. Accor will maintain a 6% stake in Club Mediterranee combined with a 2 year lock up period as part of the shareholders agreement.

With 168,000 people in 140 countries, Accor is the European leader and one of the world's largest groups in travel, tourism and corporate services, with two major international activities:

• hotels: over 4,000 hotels (over 466,000 rooms) in 92 countries, casinos, travel agencies, and restaurants;
• services to corporate clients and public institutions: 19 million people in 34 countries use a broad range of services (food vouchers, people care and services, incentive, loyalty programs, events) engineered and managed by Accor.