PARADISE ISLAND, The Bahamas – Nov. 11, 2004 – Kerzner International Limited (NYSE: KZL) (the "Company"), a leading international developer and operator of destination resorts, casinos and luxury hotels, has reported results for the third quarter of 2004.

The Company reported a net loss in the quarter of $11.2 million, compared to net income of $6.5 million in the same period last year, resulting in diluted net loss per share of $0.32 compared to diluted net income per share of $0.22 in the same period last year. Adjusted net income for the quarter was $3.7 million compared to $8.1 million in the same period last year. Adjusted net income per share in the quarter was $0.11 compared to $0.27 in the same period last year.

Results in the quarter were adversely affected by Hurricane Frances, which passed just to the north of Paradise Island. This hurricane, as well as the effects of the subsequent hurricanes and tropical storms that hit the state of Florida, negatively impacted business in the week preceding Labor Day and in the weeks thereafter, resulting in lower overall business levels in September. The month of September is traditionally the Company's slowest month of the year. Atlantis, Paradise Island remained open throughout the storms.

In the quarter, costs associated with Hurricane Frances were $4.6 million, which primarily consisted of clean up and repair costs and complimentary goods and services to guests of $3.4 million and a loss on damaged assets of $1.2 million. These expenses, which amount to $0.13 per share, are included as adjusting items in the accompanying Reconciliation of Adjusted Net Income to GAAP Net Income. In addition, the Company estimates that the short-term business interruption associated with hurricanes resulted in lower net income of $6.8 million, or $0.20 per share, in the quarter. While the Company has an all-risk insurance policy that covers these types of losses, the total amount of loss was less than the deductible under the policy.

Butch Kerzner, Chief Executive Officer of the Company commented, "We experienced strong business levels at Atlantis, Paradise Island in July and August as the property achieved an average occupancy of 92%. September was affected by the unusual hurricane activity; however our booking activity and call volumes have come back strongly in the month of October and operating trends have been very positive."

Destination Resorts

Atlantis, Paradise Island:
Atlantis, Paradise Island reported net revenue and EBITDA in the quarter of $106.5 million and $23.4 million, respectively, as compared to $114.8 million and $29.9 million in the same period last year.

Atlantis's revenue per available room ("RevPAR") for the quarter was $173 as compared to $177, representing a 2% decrease over the same period last year. In the quarter, Atlantis achieved an average occupancy of 77% and a $225 average daily room rate ("ADR"), which compared to an average occupancy of 79% and an ADR of $225 in the same period last year.

Call volume and the level of bookings have steadily improved since the start of October. As compared to the prior year, September calls handled by our reservation center and net bookings decreased by 16% and 44%, respectively, primarily as a result of the storms that affected The Bahamas and Florida. For the month of October, calls handled and net bookings increased by 28% and 34%, respectively, over the prior year.

In the Atlantis Casino, the largest casino in the Caribbean market, table drop in the third quarter declined by 14% over the same period last year. For the quarter, slot volume increased by 2% over the same period last year; however, slot win decreased by 8% as a result of a lower slot hold due to a different mix of machines.

As part of the Phase III expansion, the Company has continued construction of Marina Village, a 65,000 square foot project, which includes four new restaurants and retail space around the Atlantis Marina. The Company has also continued construction of the 116 two- and three-bedroom units to be developed in the second phase of the timeshare development at Harborside at Atlantis, a joint venture between the Company and a subsidiary of Starwood Hotels & Resorts Worldwide, Inc. ("Starwood"). These two elements of the expansion are expected to be completed by the third quarter of 2005. The Phase III project scope continues to include a third timeshare phase, consisting of approximately 200 units. The Company plans to develop this third phase in collaboration with Starwood and expects to commence development once the joint venture has sold 75% of the second phase.

Planning with respect to the other parts of the Phase III expansion continues. The Company has until December 31, 2004 to determine in its discretion whether to proceed with the remaining elements of the Phase III expansion that it has not commenced. The Company's determination will depend on the assessment of many factors, including global economic and political conditions, the regional competitive environment, financing and the Government of The Bahamas' proceeding with its commitments under the Heads of Agreement.

Atlantis, The Palm, Dubai:
The Company, along with its partner, Istithmar PJSC ("Istithmar"), are in the process of obtaining financing from a syndicate of banks for a $700 million term loan facility that will enable the joint venture to commence construction of Atlantis, The Palm, a 2,000-room destination resort to be located on The Palm, Jumeirah. The development cost of the project is estimated at $1.1 billion. The Company's equity commitment to this project is $100 million, with the joint venture's total equity capital commitment equaling $400 million.

The Company has entered into (1) a long-term management agreement with the joint venture that entitles it to receive a fixed percentage of the revenue and gross operating profit generated by Atlantis, The Palm and (2) a development agreement that entitles it to receive $20 million and reimbursement of certain expenses over the development period.

Development planning is underway in anticipation of construction, which is expected to commence in the first quarter of 2005 and be completed towards the end of 2007. This project is subject to various closing conditions, completion of the term loan facility and all requisite governmental consents.

One&Only Resorts:

In its One&Only Resorts segment, the Company reported net revenue of $19.9 million and an EBITDA loss of $2.9 million in the quarter compared to net revenue of $8.9 million and an EBITDA loss of $2.3 million in the same period last year. Results in the quarter included $6.5 million and $2.5 million of net revenue and EBITDA loss, respectively, from the One&Only Palmilla, whose results have been consolidated pursuant to the Company's adoption of Financial Accounting Standards Board Interpretation No. 46R, "Consolidation of Variable Interest Entities" ("FIN 46R") beginning January 1, 2004.

The One&Only Ocean Club posted a 13% increase in ADR mainly driven by the successful introduction of its three luxury villas launched at the end of the second quarter. However, the property experienced lower occupancy in the quarter as a result of Hurricane Frances. The resort achieved an average occupancy of 71% and ADR of $636 in the quarter compared to an average occupancy of 82% and ADR of $563 in the same period last year. As a result of Hurricane Frances, the property closed for eleven days before reopening on a fully operational basis.

At the end of the quarter, The One&Only Palmilla, which is owned by a 50/50 joint venture between the Company and Goldman Sachs Emerging Markets Real Estate Fund, had outstanding debt that included $85.9 million owed primarily to a syndicate of banks. The Company had also advanced on a subordinated basis to the joint venture $14.5 million with respect to completion loans related to the redevelopment of the property. The joint venture is currently negotiating a $110 million refinancing of the entirety of the bank and subordinated debt. This new facility is expected to close by the end of this year. Upon closing, the Company's guarantee of $46.5 million related to the existing facility will be terminated. Closing is subject to the completion of binding documentation and other customary conditions.

Contacts
Kerzner International Limited Investor Contact: Omar Palacios, 242-363-6018
Or
Media Contact: Lauren Snyder, 242-363-6018