UPDATE: Seychelles's Exchange Offer Receives Boost from Creditors

LONDON, December 24 - An informal group of creditors holding 9.125% Notes due 2011 eligible
under the country's recently launched exchange offer announced today that its
members intend to support Seychelles's debt restructuring effort by
participating in the exchange offer.

Members of the informal group include Banco Finantia, Cable & Wireless,
and Diageo.

On December 14 2009, Seychelles issued a press release announcing the
full launch of an offer to exchange certain debt instruments, constituting
the bulk of Seychelles's external commercial debt, for new bonds. One of the
new bonds being offered will benefit from a partial guarantee on interest
from the African Development Bank (AFDB). The terms of this exchange offer
are set out in detail in a Prospectus dated 7 December 2009.

The Creditors' intention to participate in Seychelles's exchange offer
follows multiple rounds of discussions with the Seychelles authorities and
their advisors since September 2009, and was prompted by an analysis of the
terms of the offer, the country's financial position, and its progress with
the reform process.

Mr. Peter Donnelly, Managing Director of Banco Finantia and chairman of
the informal creditor group commented that, "Our focus from the outset of the
discussions has been on helping Seychelles to regain debt sustainability
whilst ensuring equitable burden- sharing amongst creditors and the
Government. In this regard we believe that Seychelles considered creditor
views in finalising the terms of the exchange offer, and we are satisfied
that the final terms of the offer are as good as possible under the
circumstances."

He added, "We have been reassured by the Seychelles Government's clear
commitment to reform as reflected in the IMF's recent approval of a new three
year arrangement under the IMF's Extended Fund Facility (EFF), and have been
appreciative of the constructive dialogue that it has maintained with
creditors throughout the process."

The expiration date of the offer is 14 January 2010.

DF King & Co., +44-20-7920-9700