Brian Wallace Group Finance Director and Deputy Chief Executive

Hotels (22.6)% Worldwide Betting % Disposal businesses-1.2 Central costs and income(6.6)(6.2) Operating profit (2) (8.8)% Interest(37.7)(39.6)4.8% Profit before tax (2) (9.9)% Effective tax rate (2) 22.0%21.1% EBITDA (2) (0.7)% Hotels (22.6)% Worldwide Betting % Disposal businesses-1.2 Central costs and income(6.6)(6.2) Operating profit (2) (8.8)% Interest(37.7)(39.6)4.8% Profit before tax (2) (9.9)% Effective tax rate (2) 22.0%21.1% EBITDA (2) (0.7)% 6 months to 30 June 2002 £m 6 months to 30 June 2002 £m 6 months to 30 June 2001 (1) £m 6 months to 30 June 2001 (1) £m Hilton Group plc - Summary of Performance Variance B(W) Variance B(W) (1) Restated for the impact of FRS 19 (2) Before goodwill amortisation and exceptional items

Reported profit (22.6)% Scandic profit(16.6)(2.7) Comparable profit (34.3)% Royal Bank of Scotland rent Disposals / new openings(1.0)(2.7) Foreign exchange(0.6)- Like for like profit (30.2)% Reported profit (22.6)% Scandic profit(16.6)(2.7) Comparable profit (34.3)% Royal Bank of Scotland rent Disposals / new openings(1.0)(2.7) Foreign exchange(0.6)- Like for like profit (30.2)% 2002 £m 2002 £m Hotels - Like for Like Profit (1) % change % change 2001 £m 2001 £m (1) Before goodwill amortisation and exceptional items

Like for Like Hotels, Constant Currencies 5% 0% (5)% (10)% Occ % growth Rate growth RevPAR growth Including Scandic March / April have been combined to avoid the distortion caused by the timing of Easter Hotels Worldwide Occupancy, Rate and RevPAR Performance vs 2001 JanFeb Mar / Apr MayJuneJuly 1.1% (7.5)% (4.3)% (5.5)% (5.6)% (4.3)%

Hotels Worldwide RevPAR by Ownership Type Like for Like, Constant Currencies 0% (2)% (6)% (10)% (12)% First half RevPAR growth 2002 vs 2001 (10.0)% (4)% (8)% (8.3)% (8.2)% (0.8)% First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract First half RevPAR growth 2002 vs 2001 split by owned properties, fixed lease, contingent lease and management contract Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Includes Scandic in 2001 although it was only consolidated from 11 th June 2001 Fixed lease Owned Contingent lease Managed

Revenue decrease(61.1) GOP decrease (1) (36.3) Revenue decrease(61.1) GOP decrease (1) (36.3) Hotels - Cost Management Like for Like (1) Before exceptional items and goodwill amortisation Excludes Scandic £m Incremental conversion40.6% Rental and owners return2.6 Rates(2.4) Insurance and other(1.8) Foreign exchange(0.6) (2.2) Rental and owners return2.6 Rates(2.4) Insurance and other(1.8) Foreign exchange(0.6) (2.2) Operating profit decrease (1) (38.5)

UK Hotels RevPAR Performance vs 2001 Like for Like Hotels 5% 0% (5)% (15)% (20)% JanFeb Mar / Apr MayJuneJuly Provinces (10)% London 5 star London 4 star Total UK March / April have been combined to avoid the distortion caused by the timing of Easter

Hilton vs London Market Cumulative Year to Date RevPAR Premium £50 £60 £70 £80 Jan £90 FebMarAprMayJune RevPAR (£) 4% 10% 18% Premium 6% 8% 12% 14% 16% The Market RevPAR 2002 Hilton RevPAR 2002 Hilton RevPAR Premium 2002 Market Source: PKF Hotel Consultancy Services

France, Germany, Benelux RevPAR Performance vs 2001 Like for Like, Constant Currencies 0% (10)% (15)% (25)% (30)% Benelux (5)% (20)% FranceGermany Including Scandic March / April have been combined to avoid the distortion caused by the timing of Easter JanFeb Mar / Apr MayJuneJuly

Scandic - Occupancy, Rate and RevPAR Performance vs 2001 Like for Like, Constant Currencies 5% 0% (5)% (10)% (15)% (10.2)% Occ % growth Rate growth RevPAR growth March / April have been combined to avoid the distortion caused by the timing of Easter 2.5% (5.4)% (1.9)% (5.9)% (0.7)% JanFeb Mar / Apr MayJuneJuly

Like for like hotels trading(3.9) Openings / closures / major refurbishments(3.5) Integration synergies5.8 Like for like hotels trading(3.9) Openings / closures / major refurbishments(3.5) Integration synergies5.8 Profit Impact £m Profit Impact £m Scandic - Financial Update Integration synergies in excess of £10m on an annualised basis Integration synergies in excess of £10m on an annualised basis

Successful integration Successful integration Cost savings exceeded Cost savings exceeded Transformed UK market position Transformed UK market position Returns held back by 11 th September and economic slowdown Returns held back by 11 th September and economic slowdown Successful integration Successful integration Cost savings exceeded Cost savings exceeded Transformed UK market position Transformed UK market position Returns held back by 11 th September and economic slowdown Returns held back by 11 th September and economic slowdown Stakis - Post Acquisition Review

Retail Betting1, Telephone Betting eGaming Vernons Worldwide Betting1,754.51, Retail Betting1, Telephone Betting eGaming Vernons Worldwide Betting1,754.51, £m 2002 £m Worldwide Betting 2001 £m 2001 £m 2002 £m 2002 £m 2001 £m 2001 £m Turnover Operating Profit (1) (1) Before goodwill amortisation and exceptional items

Gross Win by Channel 2002 Gross win - £319.9m 2001 Gross win - £295.5m European Retail Telephone Betting eGaming 87% 8% 5% 91% 4% 5% Gross win is before duty / gross profit tax are deducted NB. European retail includes AWPs net of VAT

UK Retail Betting Year on Year Turnover Growth - Zero Deduction Effect (2001/ 2 vs 2000/1) 0% 20% 40% 60% Oct 80% NovDecJanFebMarAprMayJune Actual growth Trendline (growth due to zero deduction) Growth due to zero deduction

Telephone Betting Single account proposition across telephone, online and interactive TV Single account proposition across telephone, online and interactive TV Voice recognition on trial during World Cup Voice recognition on trial during World Cup Single account proposition across telephone, online and interactive TV Single account proposition across telephone, online and interactive TV Voice recognition on trial during World Cup Voice recognition on trial during World Cup 2002 £m 2002 £m 2001 £m 2001 £m Turnover Gross win Gross win margin7.7%11.6% Operating profit Average stake per call (£) No. of calls (000’s)2,2641,840 Active customers (000’s) Turnover Gross win Gross win margin7.7%11.6% Operating profit Average stake per call (£) No. of calls (000’s)2,2641,840 Active customers (000’s)

eGamingeGaming Turnover Gross win (1) Gross profit (2) Gross profit % (2) 12.9%16.2% Operating profit Active customers (000’s) (3) Turnover Gross win (1) Gross profit (2) Gross profit % (2) 12.9%16.2% Operating profit Active customers (000’s) (3) eGaming now has over 400,000 registered customers eGaming now has over 400,000 registered customers 2002 £m 2002 £m 2001 £m 2001 £m (1) Gross win is before duty / gross profits tax are deducted (2) Gross profit is after duty / gross profits tax (3) Active customers are those who placed a bet during the period

eGaming - Monthly Turnover £m £5m £14m £41m 64% World Cup Euro 2000 June 2000 June 2001 June 2002 £23m

eGaming Sportsbook First Half Turnover by Country UK Far East Europe 49% 4% 10% 61% 1% 6% 37% 32% Other % growth in sportsbook turnover year on year 169% growth in sportsbook turnover year on year

Hilton Group plc - Cash Flow Opening net borrowings(1,473.9)(1,374.3) Cash inflow from operating activities Interest, tax and dividends paid(132.2)(134.5) Free cash flow Capital expenditure(85.2)(94.6) Free cash flow after capex(5.6)(35.2) Proceeds from asset sales Acquisitions / disposals3.5(457.9) 5.6(129.3) Exchange and other movements (1) (43.6)6.5 Net borrowings movement (38.0)(122.8) Closing net borrowings(1,511.9)(1,497.1) Opening net borrowings(1,473.9)(1,374.3) Cash inflow from operating activities Interest, tax and dividends paid(132.2)(134.5) Free cash flow Capital expenditure(85.2)(94.6) Free cash flow after capex(5.6)(35.2) Proceeds from asset sales Acquisitions / disposals3.5(457.9) 5.6(129.3) Exchange and other movements (1) (43.6)6.5 Net borrowings movement (38.0)(122.8) Closing net borrowings(1,511.9)(1,497.1) 2002 £m 2002 £m 2001 £m 2001 £m (1) Includes £48.6m adverse exchange (2001: £3.1m favourable exchange)

Sao Paulo11.6 Gatwick9.9 Cologne - Scandic new build & rebrand6.2 Syndhaven - Scandic rebrand2.7 Barcelona2.7 Kalastajatorppa - refurbishment2.4 Zurich2.0 Other (all under £2m)21.9 Total Hotels59.4 Total LivingWell Sao Paulo11.6 Gatwick9.9 Cologne - Scandic new build & rebrand6.2 Syndhaven - Scandic rebrand2.7 Barcelona2.7 Kalastajatorppa - refurbishment2.4 Zurich2.0 Other (all under £2m)21.9 Total Hotels59.4 Total LivingWell BS 2000 EPOS system1.6 Numbers terminals1.1 eGaming / Telephone betting3.9 Other (including: acquisitions / new licences £1.8m, relocations £2.9m, refurbs / extensions £3.1m) BS 2000 EPOS system1.6 Numbers terminals1.1 eGaming / Telephone betting3.9 Other (including: acquisitions / new licences £1.8m, relocations £2.9m, refurbs / extensions £3.1m) Hotels Worldwide Betting Total 2002 £m 2002 £m Hilton Group plc - Analysis of Capital Expenditure

Successful bond issues: Successful bond issues: - Euro 500 million 6.5% due July Sterling 250 million 7.125% due July 2012 Committed facilities: Committed facilities: - £1 billion surplus over gross debt - weighted average term of committed facilities is 4 years No financial ratio covenants in existing facility agreements No financial ratio covenants in existing facility agreements Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Foreign currency assets hedged by borrowing in foreign currencies Foreign currency assets hedged by borrowing in foreign currencies Successful bond issues: Successful bond issues: - Euro 500 million 6.5% due July Sterling 250 million 7.125% due July 2012 Committed facilities: Committed facilities: - £1 billion surplus over gross debt - weighted average term of committed facilities is 4 years No financial ratio covenants in existing facility agreements No financial ratio covenants in existing facility agreements Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Fixed interest rates on 50% of gross debt for a weighted average term of 3 years Foreign currency assets hedged by borrowing in foreign currencies Foreign currency assets hedged by borrowing in foreign currencies TreasuryTreasury

David Michels Group Chief Executive

Hilton Group plc

Revenue Per Available Room - Like for Like* Growth Growth LondonProvinces Total United Kingdom Europe & Africa Middle East & Asia Pacific The Americas Total Hilton Scandic branded Total Hotels (11.3)%(1.8)%(10.2)%(7.1)%(10.3)%(7.8)% (5.8)%3.5%(6.5)%(4.3)%1.8%(3.3)% First Quarter 2001 Growth (8.4)%0.8%(8.2)%(5.7)%(4.2)%(5.4)% Second Quarter Six Months to June Hilton branded: (12.2)%(2.0)%(6.9)% (13.6)%(2.6)%(8.0)% (12.8)%(2.4)%(7.5)% *All at constant currencies, including a full 6 months of Scandic in 2001

Hotels Worldwide betting Major property purchases Capital expenditure Disposals - hotels(151)(13)(355) * (171) Hotels Worldwide betting Major property purchases Capital expenditure Disposals - hotels(151)(13)(355) * (171) Cash Shares Cash Shares CapexCapex Acquisitions (Stakis and Scandic) 1999 £m 1999 £m 2000 £m 2000 £m 2001 £m 2001 £m Forecast 2002 £m Forecast 2002 £m * Potential sale and leaseback deal Hotels - Property net book value£2.5bn£2.8bn £2.6bn

Hilton International - Property Net Book Value movement over 4 years UK£1.8bn£1.9bn£1.6bn£1.6bn Overseas£0.7bn£0.9bn£1.0bn£1.0bn Total£2.5bn£2.8bn£2.6bn£2.6bn UK£1.8bn£1.9bn£1.6bn£1.6bn Overseas£0.7bn£0.9bn£1.0bn£1.0bn Total£2.5bn£2.8bn£2.6bn£2.6bn

ScandicScandic

BrandingBranding Hilton hotels in 70 countries (233 HHC) - 40 more on the way - Owned / management contract / leased Hilton hotels in 70 countries (233 HHC) - 40 more on the way - Owned / management contract / leased Scandic (mid-market) hotels - Target 200 by end Management contract / leased / franchised Scandic (mid-market) hotels - Target 200 by end Management contract / leased / franchised

LivingWellLivingWell UK123,600 International16,021 Total139,621 Current Membership

Half Year Shop Performance - UK and Jersey Average number of shops PBIT £m PBIT per shop £k Average number of shops PBIT £m PBIT per shop £k ,8311,8921,8921,9101,8791,8831, N.B. Excludes SIS contribution

Horses13.5%14.7%12.7%12.9% Greyhounds17.2%16.8%17.2%15.7% Football (3)15.5%23.2%17.8%15.9% Sports14.2%12.8%10.7%10.7% Numbers24.4%23.3%24.3%26.1% Average14.9%15.9%14.2%14.0% Horses13.5%14.7%12.7%12.9% Greyhounds17.2%16.8%17.2%15.7% Football (3)15.5%23.2%17.8%15.9% Sports14.2%12.8%10.7%10.7% Numbers24.4%23.3%24.3%26.1% Average14.9%15.9%14.2%14.0% 2002 UK Shops - Gross Profit (1) Product margins - First Half 2001 (2) 2000 (2) Average ’97 - ’00 (2) Average ’97 - ’00 (2) (1) Gross profit is after duty / gross profits tax (2) Adjusted for gross profits tax (3) Excluding the World Cup the gross profit margin on football for 2002 was 18.4%

Shop Innovation Further 14 shops recently purchased. 16 more in second half Further 14 shops recently purchased. 16 more in second half EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago Turnover +50% this year vs last Turnover +50% this year vs last Further 14 shops recently purchased. 16 more in second half Further 14 shops recently purchased. 16 more in second half EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s) FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago FOBT’s averaging £3,900 p/w per terminal since new bets introduction two months ago Turnover +50% this year vs last Turnover +50% this year vs last

Budd Review and the Casino Business

Telephone Betting Year on Year Turnover Growth 0% 10% 30% 40% 1999 vs % 2000 vs vs HY vs 2001 HY 50% 20% 29% 6% 18% 55%

eGaming Gross Win st half nd half nd half st half £m 1 st half

Registered players392,00065,0006,400 Active130,00028,0002,500 Currencies £ stake per bet / play£19.17£10.26£35 Languages11111 Registered players392,00065,0006,400 Active130,00028,0002,500 Currencies £ stake per bet / play£19.17£10.26£35 Languages11111 eGamingeGaming (Average pot) SportsbookSportsbookCasinoCasinoPokerPoker (Played since 1 Jan 2002) (Internet only)

MayJuneJuly August to date Poker - Average Rake Per Week £k 10

Total number of bets1.2 million Turnover£21.6 million Gross win£2.5 million Total number of new customer registrations45,000 % of business non-UK68% Total number of bets1.2 million Turnover£21.6 million Gross win£2.5 million Total number of new customer registrations45,000 % of business non-UK68% World Cup 2002 Internet and Interactive TV Betting

Hotels Rebound / RevPAR PBIT increase Peer / Yield premium to rise New income stream from mid market & resorts Hotels Rebound / RevPAR PBIT increase Peer / Yield premium to rise New income stream from mid market & resorts Upside / Opportunities Betting FOBT income stream Budd Casinos / Slots eGaming to double Turnover increase / more steam Telephone betting / opportunities Betting FOBT income stream Budd Casinos / Slots eGaming to double Turnover increase / more steam Telephone betting / opportunities Strong capex / cost control Capital redeployment EBITDA growth from invested capital Strong capex / cost control Capital redeployment EBITDA growth from invested capital