The following is a letter to all stockholders of the Pegasus Hotels of Jamaica Limited (PEG) from the Take-Over Bid Advisory Subcommittee of the Board of Directors of PEG (The Take-Over Bid Advisory Sub-Committee). The Take-Over Bid Advisory Sub-Committee refers to the Statement of Supplemental Information dated March 31, 2011 circulated by the Offeror. The statement of supplemental information provides important additional information about the future plans for PEG which was requested by the Financial Services Commission to be provided to Stockholders by the Offeror. Given the importance of the information provided in the Statement of Supplemental Information, the Take-Over Bid Advisory Sub-Committee revisited its recommendation made on page 13 of the Directors` Circular not to accept the Offer Price of J$13.14 made by the Offeror. On completion of its review, the Take-Over Bid Advisory Sub-Committee`s recommendation has not changed. It therefore continues to recommend that shareholders do not accept the Offer Price of J$13.14 made by the Offeror given the prospects for profitability of the Pegasus as it is presently operated, or alternatively, under the terms of a proposed lease agreement to be negotiated. As advised in the Statement of Supplemental Information, the Offer remains open for acceptance until 3:00 pm on Thursday, April 28, 2011.
