Kerzner Consummates Merger

PARADISE ISLAND, The Bahamas -- (PRESS RELEASE) -- Kerzner International Limited (NYSE:KZL), through its subsidiaries a leading international developer and operator of destination resorts, casinos and luxury hotels, announced today that it has completed the going-private transaction approved on August 28, 2006 at an extraordinary general meeting of the Company's shareholders. As a result of the transaction, each issued and outstanding ordinary share of the Company was cancelled and converted automatically into the right to receive $81.00 in cash, without interest.

The transaction was led by the Company's Chairman, Sol Kerzner, and its Chief Executive Officer, Butch Kerzner, and an investor group including Istithmar PJSC, Whitehall Street Global Real Estate Limited Partnership 2005, Colony Capital LLC, Providence Equity Partners, Inc. and The Related Companies, L.P.

Shareholders of the Company who have stock certificates in their possession will receive instructions by mail from The Bank of New York, the paying agent, concerning how and where to forward their certificates for payment.

In connection with the transaction, the Company and its wholly owned subsidiary, Kerzner International North America, Inc. ("KINA"), tendered to purchase and solicited consents relating to all of their outstanding 6 3/4% Senior Subordinated Notes due 2015, and received tenders and consents with respect to approximately 98.7% of the aggregate outstanding principal amount of their notes. The Company and KINA have accepted for payment all of the tenders and consents received.