Investcorp Makes $40 Million Acquisition of Residence Inn Manhattan Beach in Los Angeles

Bahrain, June 19, 2011 - Investcorp, the global provider and manager of alternative investment products, today announced that it has acquired Residence Inn Manhattan Beach, a 176-room Marriott hotel in Los Angeles, California.

Residence Inn is the Marriott hotel group's brand of extended stay hotels, a type of lodging that has more home-like amenities and is popular with business travellers on extended assignments or undergoing re-location. Investcorp has agreed a new franchise agreement with Marriott, and will embark on a capital investment plan to renovate and upgrade the property. The total consideration for the acquisition was approximately $40 million including the reserve for this renovation and the purchase has been structured to be Shari'ah compliant.

"We are very pleased to be adding Residence Inn Manhattan Beach to our real estate hospitality portfolio," said Mohammed Al-Shroogi, Investcorp's President of Gulf business. "The transaction reflects Investcorp's focus on assets that have strong fundamentals, such as a good location, stable operations and favorable outlook. The property's location is excellent, in the dense coastal Los Angeles market, minutes away from the beach and with corporate demand drawn from the nearby aerospace and oil industries. Its annual occupancy rates have consistently outperformed the market over the last five years, despite the difficult economic environment."

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About Investcorp
Investcorp is a leading provider and manager of alternative investment products. Investcorp has offices in New York, London and Bahrain and is publicly traded on the Bahrain Bourse (INVCORP). Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at March 31, 2011, Investcorp had $11.8 billion in assets under management. Further information is available at www.investcorp.com.

Media Contacts:
Investcorp (Bahrain)
Firas El Amine
+973 39987838
felamine@Investcorp.com

Brunswick Gulf Ltd
Jeehan Balfaqaih
+971 4 446 6270
jbalfaqaih@brunswickgroup.com