"Our corporate and marketing activities are focused on building the Sunterra vacation ownership brand name in anticipation of the roll out of our worldwide Club Sunterra points-based vacation exchange system this fall. Aligning our corporate identity with our brand name is an integral part of that process," said Steven C. Kenninger, President.

"We believe a proactive branding strategy will enable us to more fully capitalize on our extensive portfolio of high quality resorts in desirable vacation destinations around the world, further strengthening our leading position in the vacation ownership industry," said James E. Noyes, Chief Operating Officer. "Going forward, we intend to offer an increasing variety of innovative products and resort choices through our Club Sunterra brand. The vacation ownership industry is poised for dramatic growth as vacation ownership evolves into an increasingly preferred way of vacationing and we are at the forefront of this market. Our prospects for growth remain excellent as we further develop our presence in the U.S. and Europe and directly address market desires with the
introduction of Club Sunterra."

Signature Resorts, Inc. is the world's largest vacation ownership company with 85 resort locations around the world and more than 200,000 owner families. Through its Marc Hotels Resorts subsidiary, Signature manages units at an additional 22 resorts in Hawaii.

This release contains forward looking statements, which include Signature's expansion plans, future prospects and other forecasts and statements of expectations. Actual results might differ materially from those expressed in any forward looking statements made by the Company due to, among other things, the timing and developments of the Company's retail brand and those factors identified in Signature's filings with the Securities and Exchange Commission, including those set forth in Items 1 and 2 of Signature's Annual Report on Form 10-K for the year ended December 31, 1997.