1. Brian Wallace Group Finance Director

2. Hilton International111.096.0 Betting & Gaming51.363.5 Central costs and income(6.8)(9.8) Operating profit155.5149.7 Goodwill amortisation(18.5)(9.7) Interest(46.7)(32.1) Profit before tax90.3107.9 Tax(22.9)(26.7) Profit after tax67.481.2 Hilton International111.096.0 Betting & Gaming51.363.5 Central costs and income(6.8)(9.8) Operating profit155.5149.7 Goodwill amortisation(18.5)(9.7) Interest(46.7)(32.1) Profit before tax90.3107.9 Tax(22.9)(26.7) Profit after tax67.481.2 Half Year to 30 June 2000 £m Half Year to 30 June 2000 £m Proforma Half Year to 30 June 1999 £m Proforma Half Year to 30 June 1999 £m EBITDA before exceptional items206.5197.6 Profit before tax, goodwill, FRS15 & exceptional items120.5127.5 EBITDA before exceptional items206.5197.6 Profit before tax, goodwill, FRS15 & exceptional items120.5127.5 Hilton Group plc - Summary of Performance

3. Operating profit as reported111.096.015.6% Net effect of UK property changes (mainly disposals)(1.5)(9.4) Inclusion of overheads treated centrally in 1999-(5.0) Effect of treating Stakis as acquired on 1 January 1999-19.9 Adjusted operating profit109.5101.57.9% Operating profit as reported111.096.015.6% Net effect of UK property changes (mainly disposals)(1.5)(9.4) Inclusion of overheads treated centrally in 1999-(5.0) Effect of treating Stakis as acquired on 1 January 1999-19.9 Adjusted operating profit109.5101.57.9% Increase Half Year to 30 June 2000 £m Half Year to 30 June 2000 £m Proforma Half Year to 30 June 1999 £m Proforma Half Year to 30 June 1999 £m Hilton International - Underlying Performance

4. UK281.365.1226.063.89.1% Europe267.430.0235.020.114.8% Middle East and Africa103.06.693.86.2(1.2)% Asia / Australasia243.44.2230.42.28.8% Americas114.410.097.910.44.9% LivingWell19.42.09.00.9- 1,028.9117.9892.1103.69.0% Central & non- operating Items(6.9)(7.6) 111.096.015.6% UK281.365.1226.063.89.1% Europe267.430.0235.020.114.8% Middle East and Africa103.06.693.86.2(1.2)% Asia / Australasia243.44.2230.42.28.8% Americas114.410.097.910.44.9% LivingWell19.42.09.00.9- 1,028.9117.9892.1103.69.0% Central & non- operating Items(6.9)(7.6) 111.096.015.6% TurnoverProfitTurnoverProfit* Revpar £m£m£m£mGrowth TurnoverProfitTurnoverProfit* Revpar £m£m£m£mGrowth * At constant currencies and including full 6 months of Stakis results. 2000 1999 Proforma Hilton International

5. Total Sales281.3287.4 Comparable sales265.3255.9 Comparable GOP123.4117.9 GOP percentage46.5%46.1% Incremental conversion59% Other costs(46.5)(36.0) FRS15 depreciation(8.3)(8.1) Comparable profit68.673.8 Costs treated centrally(5.0)- FRS15 on disposed properties-(0.6) Stakis first quarter profit-(18.8) Non comparable profit1.59.4 Reported profit65.163.8 Total Sales281.3287.4 Comparable sales265.3255.9 Comparable GOP123.4117.9 GOP percentage46.5%46.1% Incremental conversion59% Other costs(46.5)(36.0) FRS15 depreciation(8.3)(8.1) Comparable profit68.673.8 Costs treated centrally(5.0)- FRS15 on disposed properties-(0.6) Stakis first quarter profit-(18.8) Non comparable profit1.59.4 Reported profit65.163.8 2000 £m Proforma 1999* £m * Including Stakis for 6 months UK Hotels - P&L Overview

6. 1999 costs(36.0) Depreciation(1.7) Owners return / rental(1.6) Pensions(0.5) Insurance / rates(0.8) Training(1.0) Sales & marketing / brand relaunch(5.4) Inflation(1.5) (12.5) Savings2.0 2000 costs(46.5) 1999 costs(36.0) Depreciation(1.7) Owners return / rental(1.6) Pensions(0.5) Insurance / rates(0.8) Training(1.0) Sales & marketing / brand relaunch(5.4) Inflation(1.5) (12.5) Savings2.0 2000 costs(46.5) £m UK Hotels - "Other Costs" Movement

7. 28 33 38 43 48 2000 1999 Like for Like GOP% Americas Asia Pacific & Australia Middle East & Africa Continental Europe UKTotal % Gross Operating Profit by Area

8. First Year1495 Second Year9252 Third Year5356 First Year1495 Second Year9252 Third Year5356 Year of operation Average contribution per hotel in 2000 £000 Average contribution per hotel in 2000 £000 No. Hotels Note: Excludes Hanoi projected loss of £1.5m in 2000 Managed Hotels - New Openings

9. 30 June 199940.113.23.83.72.763.5 High roller activity(8.9)(8.9) Sale of Golden Gate Fields(3.9)(3.9) Stakis Q12.62.6 Adjusted profit40.14.3(0.1)6.32.753.3 30 June 200043.4(4.7)2.96.82.951.3 Movement3.3(9.0)3.00.50.2(2.0) Analysed as:- UK Retail Betting1.9 Other businesses1.4 3.3 30 June 199940.113.23.83.72.763.5 High roller activity(8.9)(8.9) Sale of Golden Gate Fields(3.9)(3.9) Stakis Q12.62.6 Adjusted profit40.14.3(0.1)6.32.753.3 30 June 200043.4(4.7)2.96.82.951.3 Movement3.3(9.0)3.00.50.2(2.0) Analysed as:- UK Retail Betting1.9 Other businesses1.4 3.3 Retail Betting Retail Betting Telephone Betting / Internet Telephone Betting / Internet Americas Casinos Vernons Total £m Betting & Gaming Half Year Profit Comparison

10. Turnover842.4860.2(17.8) Gross profit (including AWP’s)155.5146.78.8 Gross profit % - including AWP’s18.5%17.0%1.5% - excluding AWP’s16.9%15.4%1.5% Operating costs(116.6)(109.7)(6.9) Net profit38.937.01.9 Turnover842.4860.2(17.8) Gross profit (including AWP’s)155.5146.78.8 Gross profit % - including AWP’s18.5%17.0%1.5% - excluding AWP’s16.9%15.4%1.5% Operating costs(116.6)(109.7)(6.9) Net profit38.937.01.9 2000 £m 1999 £m Variance £m UK Retail Betting - Comparative Analysis

11. Horses16.010.315.214.3 Greyhounds21.116.920.519.2 Numbers29.227.229.027.9 Other Sports10.624.512.614.6 Football25.06.321.37.2 Total17.811.716.915.4 Horses16.010.315.214.3 Greyhounds21.116.920.519.2 Numbers29.227.229.027.9 Other Sports10.624.512.614.6 Football25.06.321.37.2 Total17.811.716.915.4 2000 Week 1-26 1999 Week 1-23 Week 24-26 Week 1-26 Gross Betting Margin Before Costs (%)

12. Levy1.0 Pension1.0 Sunday opening0.9 Marketing0.9 Other3.1 Total6.9 Levy1.0 Pension1.0 Sunday opening0.9 Marketing0.9 Other3.1 Total6.9 2000 £m 2000 £m Retail Betting - Analysis of Cost Increase

13. Analysis of Telephone Betting / Internet - Half Year Profits UK - Telephone Betting0.11.9(1.8) - Internet Betting(3.5)-(3.5) International - Elite Telebetting0.32.4(2.1) - Other Telebetting(1.3)-(1.3) - High Roller activity0.78.9(8.2) - Internet Betting(1.0)-(1.0) (4.7)13.2(17.9) UK - Telephone Betting0.11.9(1.8) - Internet Betting(3.5)-(3.5) International - Elite Telebetting0.32.4(2.1) - Other Telebetting(1.3)-(1.3) - High Roller activity0.78.9(8.2) - Internet Betting(1.0)-(1.0) (4.7)13.2(17.9) 2000 £m 1999 £m Variance £m

14. UK Telebetting Gibraltar Call Centre Gibraltar Call Centre Gibraltar Elite Gibraltar Elite Total 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m 2000 £m 2000 £m 1999 £m 1999 £m Turnover Gross profit Costs Net profit No. of calls Stake per call Gross profit % Turnover Gross profit Costs Net profit No. of calls Stake per call Gross profit % 49.3 3.9 (3.8) 0.1 1.3m £33.88 7.9% 49.3 3.9 (3.8) 0.1 1.3m £33.88 7.9% 69.8 4.8 (2.9) 1.9 1.3m £49.24 6.9% 69.8 4.8 (2.9) 1.9 1.3m £49.24 6.9% 32.0 1.1 (2.4) (1.3) 0.5m £68.73 3.4% 32.0 1.1 (2.4) (1.3) 0.5m £68.73 3.4% -------------- -------------- 33.0 1.2 (0.9) 0.3 32k £1,030 3.6% 33.0 1.2 (0.9) 0.3 32k £1,030 3.6% 45.3 3.1 (0.7) 2.4 27k £1,655 6.8% 45.3 3.1 (0.7) 2.4 27k £1,655 6.8% 114.3 6.2 (7.1) (0.9) 1.8m £61.70 5.4% 114.3 6.2 (7.1) (0.9) 1.8m £61.70 5.4% 115.1 7.9 (3.6) 4.3 1.4m £84.64 6.9% 115.1 7.9 (3.6) 4.3 1.4m £84.64 6.9% Note: Excludes high roller activity in Gibraltar Telebetting Analysis

15. 0 FebruaryMarchAprilMayJuneJulyAugust to date 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Cumulative Internet Registrations

16. 0 FebruaryMarchAprilMayJuneJuly 14 12 10 8 6 4 2 £m Monthly turnover Cumulative turnover Internet Turnover

17. Central costs reported6.89.8 Include Stakis first quarter costs -3.5 Year 2000 costs-(1.5) Costs reallocated to hotels division-(5.0) Comparable costs6.86.8 Central costs reported6.89.8 Include Stakis first quarter costs -3.5 Year 2000 costs-(1.5) Costs reallocated to hotels division-(5.0) Comparable costs6.86.8 1999 £m 1999 £m 2000 £m 2000 £m Central Costs Analysis

18. Inflow from operating activities176.8136.5 Interest paid(26.9)(19.2) Tax paid(22.0)(8.6) Dividends paid(75.2)(130.6) Free cash flow52.7(21.9) Capital expenditure(216.2)(180.0) Proceeds from asset sales0.967.7 Acquisitions, disposals4.8(350.9) (157.8) (485.1) Exchange & other movements(19.5)(4.9) Opening net debt(1,336.8)(949.5) Closing net debt(1,514.1)(1,439.5) Inflow from operating activities176.8136.5 Interest paid(26.9)(19.2) Tax paid(22.0)(8.6) Dividends paid(75.2)(130.6) Free cash flow52.7(21.9) Capital expenditure(216.2)(180.0) Proceeds from asset sales0.967.7 Acquisitions, disposals4.8(350.9) (157.8) (485.1) Exchange & other movements(19.5)(4.9) Opening net debt(1,336.8)(949.5) Closing net debt(1,514.1)(1,439.5) 2000 £m 1999 £m Group Cash Flow

19. Overseas Sao Paulo24.1 Munich Park12.8 Caribe11.8 Other12.7 61.428% UK Caledonian45.2 London Metropole21.3 Park Lane6.0 Nottingham5.0 Other50.0 127.557% LivingWell 13.36% Refurbishment / relocation5.4 BS2000 EPOS system3.5 E-commerce4.5 Other6.5 19.99% 222.1 Overseas Sao Paulo24.1 Munich Park12.8 Caribe11.8 Other12.7 61.428% UK Caledonian45.2 London Metropole21.3 Park Lane6.0 Nottingham5.0 Other50.0 127.557% LivingWell 13.36% Refurbishment / relocation5.4 BS2000 EPOS system3.5 E-commerce4.5 Other6.5 19.99% 222.1 Hilton Betting & Gaming Note: Includes £5.9m of accrued expenditure Analysis of Capital Expenditure £m

20. Consensus analyst forecast at May 1999 for 2000380 Consensus analyst forecast at August 2000 for 2000300 Movement80 Factors (estimates) UK revenue growth shortfall (£15m)10 Hotel closing / delays (eg Caribe, Nottingham)5 Hilton TV campaign, marketing and training6 Foreign exchange4 Accounting changes4 Absence of high staking Gibraltar activity12 Investment in E-Gaming (marketing, set up costs, etc)>10 Below expectation Euro 2000 / major race events in June13 Increased UK pension costs4 Other12 80 Consensus analyst forecast at May 1999 for 2000380 Consensus analyst forecast at August 2000 for 2000300 Movement80 Factors (estimates) UK revenue growth shortfall (£15m)10 Hotel closing / delays (eg Caribe, Nottingham)5 Hilton TV campaign, marketing and training6 Foreign exchange4 Accounting changes4 Absence of high staking Gibraltar activity12 Investment in E-Gaming (marketing, set up costs, etc)>10 Below expectation Euro 2000 / major race events in June13 Increased UK pension costs4 Other12 80 £m Note: This is not a company forecast ! Profit Before Tax - Analysts Forecasts for 2000

21. Profit Analysis by Contract Type No. of hotels97162879N/A220 No. of rooms20,9995,9289,91425,699N/A62,540 No. of hotels97162879N/A220 No. of rooms20,9995,9289,91425,699N/A62,540 Hilton International Turnover320.6121.8151.9415.219.41,028.9 Gross Operating Profit126.245.661.4148.119.4400.7 Less: Rental / Owners return(2.6)(19.6)(39.3)(133.5) - (195.0) Depreciation(25.0)(7.6)(1.1)-(1.6) (35.3) Other Costs / Income(23.3)(6.1)(7.3)-(15.8) (52.5) Half year to 30 June 200075.312.313.714.62.0117.9 Proforma to 30 June 1999 71.07.413.810.50.9103.6 Turnover320.6121.8151.9415.219.41,028.9 Gross Operating Profit126.245.661.4148.119.4400.7 Less: Rental / Owners return(2.6)(19.6)(39.3)(133.5) - (195.0) Depreciation(25.0)(7.6)(1.1)-(1.6) (35.3) Other Costs / Income(23.3)(6.1)(7.3)-(15.8) (52.5) Half year to 30 June 200075.312.313.714.62.0117.9 Proforma to 30 June 1999 71.07.413.810.50.9103.6 OwnedFixedLeaseContingentLeaseMgmtContractLivingWellTotal £m£m£m£m£m£m

22. David Michels Group Chief Executive

23. New Executive Team David Michels Anthony Harris Bryan Taker Brian Wallace Charles Anson Ian Payne Chris Bell

24. More falls to the bottom line These businesses are as customer-friendly as we can make them That our physical hotel estate lives up to Hilton’s perceived reputation That our e-gaming investment is sensibly directed That we expand the group To improve the long term return on capital of the group as a whole More falls to the bottom line These businesses are as customer-friendly as we can make them That our physical hotel estate lives up to Hilton’s perceived reputation That our e-gaming investment is sensibly directed That we expand the group To improve the long term return on capital of the group as a whole ObjectivesObjectives

25. 2000 London74.969.77.5%7.5% Provinces46.642.59.6%9.6% Total UK57.352.59.1%9.1% Continental Europe56.452.08.5%14.8% Africa / Middle East31.431.30.3%(1.2)% Total EMEA46.944.16.3%10.7% Asia / Australasia47.940.917.1%8.8% The Americas43.740.19.0%4.9% Overall- Occupancy68.1%65.8% - Average room rate72.368.45.7%5.3% - Revpar49.245.09.3%9.0% London74.969.77.5%7.5% Provinces46.642.59.6%9.6% Total UK57.352.59.1%9.1% Continental Europe56.452.08.5%14.8% Africa / Middle East31.431.30.3%(1.2)% Total EMEA46.944.16.3%10.7% Asia / Australasia47.940.917.1%8.8% The Americas43.740.19.0%4.9% Overall- Occupancy68.1%65.8% - Average room rate72.368.45.7%5.3% - Revpar49.245.09.3%9.0% 1999 Growth Underlying Growth Underlying Growth Note: The 1999 figures include results of Stakis for the full 6 months for comparability purposes Half Year to June Revenue Per Available Room (Comparable Stakis)

26. -8 -6 -4 -2 0 2 4 6 8 10 12 14 JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJul 19992000 % Hilton UK - Year on Year Revpar Growth

27. UK20530 Europe, Middle East & Africa5215 Asia / Australasia75 Americas545 LivingWell425 Total36060 UK20530 Europe, Middle East & Africa5215 Asia / Australasia75 Americas545 LivingWell425 Total36060 2000 Total £m 2000 Total £m 2001 Maintenance £m 2001 Maintenance £m Hilton International - Forecast Capital Expenditure

28. UK1.9 International0.7 Total2.6 £bn Value of Hotel Portfolio

29. Owned UK7623384 Continental Europe1110121245 Africa / Middle East2052532 Asia / Australasia1322834 The Americas7161125 Total97162879220 UK7623384 Continental Europe1110121245 Africa / Middle East2052532 Asia / Australasia1322834 The Americas7161125 Total97162879220 Fixed Lease Fixed Lease Contingent Lease Contingent Lease Management Contract Management Contract Total Number of Hotels by Type

30. Openings 5531078152010 Signings 871120201018-- Openings 5531078152010 Signings 871120201018-- 1994 1995 1996 1997 1998 1999 2001 2000 2002 Signings & Openings

31. Hilton Reservations Worldwide Hilton.com Conrad HHonors Joint sales and marketing Joint database Promus effect Hilton Reservations Worldwide Hilton.com Conrad HHonors Joint sales and marketing Joint database Promus effect Hilton Alliance

32. Total current members8.5m Current active members4.6m Since 1999 Jan 1 - June 30 stays3.2m Improvement on last year Split of active membershipUS3.3m Non-US1.3m Total current members8.5m Current active members4.6m Since 1999 Jan 1 - June 30 stays3.2m Improvement on last year Split of active membershipUS3.3m Non-US1.3m As at June 30 2000 HHonorsHHonors +77% +74%

33. Strategic Objectives: Retain / regain control over inventory Retain direct relationship with customers Grow incremental revenues Reduce distribution cost Share cost of investment in technology Retain / regain control over inventory Retain direct relationship with customers Grow incremental revenues Reduce distribution cost Share cost of investment in technology Europe on Line - Accor / Forte / Hilton Web Site

34. 2000 Total investment - $13m Hilton International investment - $2m 180,000 reservations in first half Two-fold increase on previous year 2000 Total investment - $13m Hilton International investment - $2m 180,000 reservations in first half Two-fold increase on previous year Hilton.comHilton.com

35. Existing Conrad Hotels: Hong Kong Brussels Dublin London Hong Kong Brussels Dublin London Istanbul Singapore Egypt (x3) Bali Istanbul Singapore Egypt (x3) Bali ConradConrad

36. Average number of shops PBIT £m24.626.822.829.137.142.834.435.6 PBIT per shop £k12.814.112.115.919.623.018.119.0 Average number of shops PBIT £m24.626.822.829.137.142.834.435.6 PBIT per shop £k12.814.112.115.919.623.018.119.0 1993 1994 1995 1996 1997 1998 2000 1999 Investment, productivity and product mix have stimulated growth 1,9211,8991,8781,8311,8921,8921,9011,870 UK Shop First Half Performance

37. RunnersMargin Per Runner 19959.6120.72.16 199610.2122.22.18 19979.8121.32.17 199810.1122.32.21 199910.4120.61.98 200010.4121.12.03 Theoretical margins are returning towards historic levels On-Course Theoretical Margins

38. Gambling is for adults aged 18 and over Maintain high levels of probity and social responsibility requirements of operators Careful review of existing legislation and regulation e.g. opening hours, number of slot machines and pay-out levels Legislation and regulation to apply to both ‘bricks’ and ‘clicks’ Create a single regulator to manage future industry rules and guidelines Create a competitive taxation regime that satisfies UK and international customers Gambling is for adults aged 18 and over Maintain high levels of probity and social responsibility requirements of operators Careful review of existing legislation and regulation e.g. opening hours, number of slot machines and pay-out levels Legislation and regulation to apply to both ‘bricks’ and ‘clicks’ Create a single regulator to manage future industry rules and guidelines Create a competitive taxation regime that satisfies UK and international customers The UK gambling industry is a world leader Appropriate modernisation is required Gambling Review Body - Hilton Submission

39. Platform InternetLadbrokes.comLaunched Ladbrokes.co.ukLaunched Bet.co.ukLaunched Vernons.co.ukOctober Digital TVCableTelewestBest BetsLaunched CWCMatchball; Lucky Clover;Launched Best Bets NTLIn discussion SatelliteBSkyBIn discussion OpenNovember TerrestrialOn-DigitalIn discussion MobileWAPBT CellnetLaunched GPRSBTSummer 2001 Hotel BedroomsHiltonWeb & ADSLOn test InternetLadbrokes.comLaunched Ladbrokes.co.ukLaunched Bet.co.ukLaunched Vernons.co.ukOctober Digital TVCableTelewestBest BetsLaunched CWCMatchball; Lucky Clover;Launched Best Bets NTLIn discussion SatelliteBSkyBIn discussion OpenNovember TerrestrialOn-DigitalIn discussion MobileWAPBT CellnetLaunched GPRSBTSummer 2001 Hotel BedroomsHiltonWeb & ADSLOn test Channel Timing E-Gaming - Distribution Channels

40. TeamtalkUK SoccerJune Big BrotherChannel 4 TV - Busiest site in UKAugust QXLAuction on-lineAugust ITNNewsAugust UmbroSportswearAugust TeamtalkUK SoccerJune Big BrotherChannel 4 TV - Busiest site in UKAugust QXLAuction on-lineAugust ITNNewsAugust UmbroSportswearAugust Partner Activity Timing E-Gaming Partnerships

41. Video streamed greyhoundsAugust 2000 Full audio serviceSeptember 2000 Fantasy sports gamesOctober 2000 Casino & slotsOctober 2000 Vernons PoolsOctober 2000 Bingo & numbers gamesMid 2001 Video streamed casino gamesEnd 2001 Video streamed greyhoundsAugust 2000 Full audio serviceSeptember 2000 Fantasy sports gamesOctober 2000 Casino & slotsOctober 2000 Vernons PoolsOctober 2000 Bingo & numbers gamesMid 2001 Video streamed casino gamesEnd 2001 Develop a best of breed betting and gaming portal Activity Timing E-Gaming Future Developments

42. Media RightsNow - March 2002 - SIS - RCA Horse Race Levy replacementNow - 2003 - Media Rights - Duty General Betting DutyNow - ongoing - Gross Profits Tax - Place of Consumption Gambling ReviewNow - 2001 - Regulation - Legislation Media RightsNow - March 2002 - SIS - RCA Horse Race Levy replacementNow - 2003 - Media Rights - Duty General Betting DutyNow - ongoing - Gross Profits Tax - Place of Consumption Gambling ReviewNow - 2001 - Regulation - Legislation Timing Industry Developments

43. UK Provinces:21 Clubs London:6 Clubs Overseas:4 Clubs Ladbroke Casinos

44. Current Membership Numbers : over 100,000 Sutton Coldfield Nottingham Malta Carlisle Sutton Coldfield Nottingham Malta Carlisle Ashford Inverness York Perth Barnsley Burton on Trent Peterborough Ashford Inverness York Perth Barnsley Burton on Trent Peterborough Dresden Weimar Berlin Mainz Sydney Prague Dresden Weimar Berlin Mainz Sydney Prague Planned Openings: LivingWellLivingWell 2000 2001