More specifically, the company has ceased all sales activities at its resorts in: Miami and Fort Lauderdale, Florida; Hilton Head, South Carolina; Lake Conroy, Texas; Steamboat Springs, Colorado; Santa Fe, New Mexico; San Luis Obispo and San Diego, California; and St. Croix, U.S. Virgin Islands. In addition, it is closing off-site sales centers in Puerto Rico, Virginia, Nevada and the Pacific Northwest.

The company currently anticipates that sales and marketing activities will continue at all other resorts. In certain locations, these activities will focus entirely on �in house� business and eliminate all other tour sources. The �in house� sales programs target potential purchasers of vacation ownership interests who are staying at the resorts because they are either existing owners, exchangers or renters.

The staffing reductions related to these changes are expected to result in the termination of approximately 930 employees at the company�s headquarters and resorts and will also affect about 150 independent contractors who sell vacation ownership interests on a commission basis.

Although the reduction in sales and marketing activities is anticipated to reduce operating expenses, the reduction will not provide the company with sufficient liquidity to ensure that it will be able to continue operations. The company continues to pursue alternatives to maintain liquidity. However, if these alternatives are not successful � and there is no assurance they will be�then the company is unlikely to be able to continue operations.  

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.  

Cautionary Statement Regarding Forward-Looking Information. This release contains forward-looking statements, including the company�s expectation of continuing sales and marketing activities at certain of it resorts, the impact of the reduction in its sales and marketing activities and other statements of expectations.