Press Release
February 17, 2000
HAIFA, Israel -- Elscint Ltd. (NYSE:ELT), a subsidiary of Elbit Medical Imaging Ltd. (NASDAQ:EMITF), has announced
that its wholly owned subsidiary, BEA Hotels NV, has signed a Term Sheet with Centro Internationale Handelsbank
AG of Austria for the proposed acquisition of 49 percent of the outstanding shares of Syrena Immobilien AG (Syrena).
Syrena owns, through a Polish subsidiary, five (5) hotels in Warsaw, Poland, with approximately 800 rooms.
Elscint Chairman Abraham (Rami) Goren said Elscint will pay US$20.8 million in cash for the interest, which is
subject to certain conditions. Additional parties to the Term Sheet are BAU Holding AG of Austria, which holds
the remaining 51 percent of Syrena, and Park Plaza Hotels Europe Ltd.
BEA Hotels NV and BAU Holding AG declared their intention to initiate an extensive renovation program for the hotels.
After renovation, Park Plaza Hotels Europe will manage the five Polish properties under the Park Plaza trade name.
Mr. Goren said the consummation of the transactions described in the Term Sheet is subject to certain conditions
which include, among others, the adoption of a mutually satisfactory business plan for the renovation of the hotels,
a satisfactory completion of due diligence examinations by BEA Hotels, the execution of final agreements between
the parties, and the approval of the respective boards of directors of the parties. It is anticipated that the
transaction will close during the third quarter of the year.
Mr. Goren said today of the deal: "The Syrena transaction is fully in line with our declared target of expanding
our hotel business, both by construction and acquisition. We are very excited about this deal, as it presents us
with an opportunity to gain a significant foothold in the vibrant and rapidly expanding Polish market. All five
hotels are situated in central Warsaw."
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or
other factors not under the Company's control which may cause actual results, performance or achievements of the
Company to be materially different from the results, performance or other expectations implied by these forward-looking
statements. These factors include, but are not limited to, the nature of the business plan to be agreed regarding
the renovation of the hotels abovementioned, the results of the due diligence examinations, and the terms as conditions
of the detailed agreements, as well as those detailed in the Company's periodic filings with the Securities and
Exchange Commission.
Contact: Marc Lavine, Corporate Secretary of Elscint, 011-972-3-6960111, mlavine@netvision.net.il;
Investor Relations, Ayelet Shaked of The Anne McBride Company, 212-983-1702, for Elscint