The filing should allow Sunterra and its subsidiaries to operate while Sunterra seeks approval of a plan of reorganization.  The Company also announced that it has executed a financing commitment letter with Ableco Finance LLC, an affiliate of Cerberus Capital Management LP and Gabriel Capital Group, for �debtor-in-possession� (�DIP�) financing, which, subject to court approval, will provide immediately to Sunterra an interim facility of up to $25 million.  Subject to satisfactory completion of other conditions, including further due diligence by the lender and court approval, the DIP lender has agreed to expand the facility to $53 million.

Sunterra Europe, Sunterra Pacific, Marc Resorts and RPM are not included in the filing.

Additional information will be forthcoming as soon as first day orders and financing orders have been approved.

Sunterra Corporation is the largest international owner and manager of vacation ownership resorts, with 90 resort locations around the world and about 300,000 worldwide owners and members.  In addition, Sunterra currently manages 17 third party condominiums and other resorts in Hawaii.  The Company�s operations consist of (i) marketing and selling vacation interests, (ii) developing, acquiring and operating vacation ownership resorts, (iii) financing customers� purchases and (iv) providing resort rental, management and maintenance services.

Certain statements in this release constitute forward-looking statements subject to the �safe harbor� provisions of the Private Securities Litigation Reform Act of 1995.