Star Resorts Enters Timeshare Market

Press Release: Star Resorts
August 9, 2002
SCOTTSDALE, AZ -- Three of the principals of Star Resorts recently closed on a deal to develop a timeshare resort in Lake Havasu City, Arizona. Ron Taskey Jr., Todd Brown and Chris Tivey are creating FIRST CABIN CLUB, which will feature 30 beachfront timeshare units in its first phase. Formed in January of 1999 by Richard Feldheim, David Hanna and Ron Taskey Jr., Star Resorts, an Arizona based fractional resort developer, will be an investor in this project.

FIRST CABIN CLUB, currently under construction, is slated for completion in November, 2002 and is located at Nautical Inn Resort, a 140-room hotel on the water at Lake Havasu City. It is in fact, Arizona's ONLY beachfront resort. This unique and popular location is less than a 4-hour drive from Los Angeles, CA and Phoenix, AZ. FIRST CABIN CLUB and NAUTICAL INN feature amenities that include 2 restaurants, conference facilities, swimming pool, boat and personal watercraft rentals, launch ramp, beachwear boutique, convenience store/deli and is directly adjacent to an executive 18-hole golf course. Most importantly they provide direct access to one of the most popular boating lakes in the West. Lake Havasu City has increasingly become a desirable destination for boaters and beach lovers in the summer and both golfers and "snowbirds" in the winter. Home of the famed London Bridge, Lake Havasu City receives approximately 1.7 million visitors per year.

Ron Taskey Jr. describes the strategy behind this exciting new development. "We have been looking for unique, niche opportunities in regional "drive-to" markets as a way to enter the timeshare market". Taskey believes they will be able to leverage Star Resorts' targeted fractional marketing techniques to lower marketing costs and increase profit.
" We believe that we can contain marketing costs to 30% to 35%, a significant difference to the industry standard of 45% to 50%", adds Taskey.

Lake Havasu City is one of the fastest growing cities in Arizona and has been favored by Southern California boaters for years, a group that comprises a large portion of the hotel's 25,000 name database that will be utilized in the marketing efforts. In addition, the First Cabin Club partners plan to seek partnership opportunities with national brand boat manufacturers, possibly creating OPC locations within boat dealerships in and around the L.A. area.

FIRST CABIN CLUB will be comprised of 30, one-bedroom beachfront units with an average selling price of $9,400 per week. The resort is slated for occupancy by late November 2002. The property includes an additional 11 acres which can be used for the development of additional timeshare, fractional or whole ownership products.

For additional information contact Mr. Ron Taskey Jr., Executive Vice President,
Star Resorts at 480-922-6801 or email at rtaskey@starresorts.com.