Seychelles Announces Successful Debt Exchange Offer

VICTORIA, Seychelles, January 15 - 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 totalling 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:

    euro 54.75 million Amortising 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.

Julia Bick, +248-382-097 / 722-907, dircom at finance.gov.sc