Disclosure of EPS performance conditions under the IHG Long Term Incentive Plan - 2008/2010 performance cycle

It was stated in the InterContinental Hotels Group PLC (IHG) Annual Report and Financial Statements for the year ending 31 December 2007 that the adjusted Earnings Per Share (EPS) performance conditions for the 2008/10 Long Term Incentive Plan (LTIP) cycle (which had not been determined at the time of publication of the Annual Report) would be disclosed when awards under the plan were made. Following the 19 May 2008 grant of awards to employees, including persons discharging managerial responsibility, details for whom were disclosed to the London and New York Stock Exchanges on 20 May 2008, the Company accordingly discloses that the EPS performance conditions on awards applying to Executive Directors and certain other senior executives are as follows:

• 10% of the award will be released if adjusted EPS growth is 6% per annum;
  
  
• 50% of the award will be released if adjusted EPS growth is 16% per annum or more;
  
  
• Vesting between these points will continue to be on a straight-line basis.

The remaining 50% of the award is based on Total Shareholder Return (TSR). Full details of the performance conditions applying in respect of TSR were disclosed in the Annual Report and Financial Statements for the year ending 31 December 2007.

Awards under the LTIP continue to lapse if the performance conditions are not met. There is no re-testing of performance conditions.