Seychelles Launches Exchange Offer

VICTORIA, Seychelles, December 7 - The Government of the Republic of Seychelles announced today that it has
launched an offer to exchange its 9.125% Notes due 2011, its Amortising Notes
due 2011, and certain loans with Seychelles as obligor, for new bonds. The
launch of the exchange offer marks a key step in the country's progress
towards debt sustainability.

The terms of the exchange offer are detailed in, and are subject to, the
prospectus that is being dispatched to holders of eligible instruments by DF
King, the authorities' information agent. In accordance with the passporting
rules of the EU Prospectus Directive, the Prospectus is in the process of
being passported and as a result the distribution of the Prospectus is being
staggered throughout the European Union (EU), and should be completed by the
end of this week. The authorities will issue a further statement upon
conclusion of the EU passporting process.

Julia Bick, +382097 / 722907, dircom at finance.gov.sc