August 31, 2001

PRESS RELEASE

CYPRESS POINTE PHASE ONE ANNOUNCES SETTLEMENT AND MANAGEMENT CHANGE

Lake Buena Vista, Fl - The Cypress Pointe Resort at Lake Buena Vista Condominium Association, Inc. (Association) and its Board of Directors are pleased to announce the settlement of the lawsuit filed by Sunterra Corporation (Sunterra) on May 21, 2001. This lawsuit pertained to disputes concerning the contract between the Association and RPM Management, Inc. (RPM), a wholly owned subsidiary of Sunterra, as the resort's management company.

The settlement includes the agreement that RPM and the Association will cooperate in transferring management of the Association from RPM to Vacation Resorts International (VRI) effective September 1, 2001. It is also agreed that the Association will support Sunterra's sale of existing inventory of Cypress Pointe property and facilitate the full transition of the resort to a 100% sold-out status from the developer.

The Board is pleased to announce the selection of VRI as the new management company for the resort. VRI manages more than 75 resorts and is capable of managing the challenges facing Cypress Pointe Resort as the Association positions itself to be the preferred Gold Crown resort in the Orlando area. A full communication to owners of the multiple new benefits available to them will be coming in the form of a quarterly newsletter. The web site for VRI is www.vriresorts.com

In a statement from the President of the Association's Board of Directors, Mr. John Chase stated, "We are happy with the resolution of this issue and look forward to providing the very best vacation experience for owners and guests. This is a new beginning and a very exciting time to be an owner at Cypress Pointe Resort. "

Cypress Pointe Resort at Lake Buena Vista is a 168-unit timeshare resort in Lake Buena Vista, Florida. The Home Owners Association can be reached by email at hoa@cypresspointe.net. The official web site for Cypress Pointe is www.cypresspointe.net . The settlement referenced herein is contingent upon the approval of the Maryland Bankruptcy Court.