The Government of the Republic of Seychelles announced today that the exchange offer launched on 7 December 2009 has received the overwhelming support of its creditors. Upon expiry of the exchange offer at close of business on 14 January 2010, holders of debts totaling US$283 million, or approximately 89% of the aggregate amount of Existing

Instruments eligible to participate, had agreed to provide extensive debt relief to Seychelles by exchanging their claims on the country for new notes.

• The participation rates by Existing Instrument were as follows:
• €54.75 million Amortizing Notes due 2011 100%
• US$230 million 9.125% Notes due 2011 84%
• Term Loan Agreement dated 22 March 1999 100%
• Facility Agreement dated 2 June 2003 100%

As part of the exchange offer, creditors had the option to select either New Discount Notes or New Par Notes. Because tenders for New Par Notes did not reach the US$50 million threshold specified in the New Par Notes Minimum Tender Condition, tenders for New Par Notes will be automatically treated as tenders for New Discount Notes in accordance with the terms of the Exchange Offer.

Simultaneously, Seychelles announced that in accordance with the Exchange Offer it will now take the steps required to implement the collective action clause embedded in the 9.125% Notes due 2011. Once the Extraordinary Resolution specified in the Prospectus is approved in a meeting of holders to be held on 8 February 2010, holders of the 16% that was not tendered will receive on the settlement date New Discount Notes in exchange for their 9.125% Notes due 2011.

The President of Seychelles, Mr. James Michel, commented, “Today is a very important day for the people of Seychelles. We are delighted with the outcome of the exchange offer, and are appreciative of the cooperation and support demonstrated by our creditors. This transaction was critical to our efforts to transform our country’s economic outlook. The reforms we have undertaken have been far-reaching, and have prepared us for a bright future. This result is further evidence that we are ready for that future.”

“With the results of the exchange offer, 50% of the full amount of external commercial debt eligible under the exchange offer will be cancelled”, commented Danny Faure, Seychelles’s Minister of Finance. “This transaction, combined with the impact of our 2009 Paris Club agreement and of the restructuring arrangements that we are negotiating with other creditors, will ensure a sustainable debt burden for Seychelles. It is clear to us that creditors have been reassured by the fundamental changes that we are implementing in our country. The support that they have provided to us will strengthen our determination to press ahead with our reform agenda.”

The exchange offer is scheduled to settle on 11 February 2010.

White Oak Advisory LLP acted as financial advisor to the Government of Seychelles in this transaction. Clifford Chance LLP acted as legal advisor.