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Press Release: The Marcus Corporation
June 30, 2006
MILWAUKEE, WI -- The Marcus Corporation (NYSE:MCS) yesterday announced that its Marcus Hotels and Resorts division
has sold the remaining inventory in its Marcus Vacation Club at Grand Geneva vacation ownership development in
Lake Geneva, Wis. to Orange Lake Resort & Country Club, of Orlando, Florida. Terms of the transaction were
not disclosed.
Orange Lake is a premier Florida vacation destination that is the largest single-site vacation ownership resort
in the world, with more than 100,000 owners. Orange Lake acquired the remaining 34 units of the 136-unit Marcus
Vacation Club property.
"With just one vacation ownership development in our portfolio, it makes sense for us to affiliate with an
industry leader that has extensive experience in marketing and selling the vacation ownership product. It also
makes sense for us to continue to do what we do best - provide management and hospitality services. This relationship
successfully combines each of our strengths," said Bill Otto, president of Marcus Hotels and Resorts.
Otto said Marcus Hotels and Resorts will continue to provide hospitality management services for the property,
including check-in, housekeeping and maintenance. The Marcus Vacation Club is adjacent to the Grand Geneva Resort,
which the company owns and operates, and Timber Ridge Lodge and Waterpark, which is managed by the division.
"One of the attractions of the Marcus Vacation Club is the many amenities available to owners year-round.
Vacation club owners have access to the many features of the Grand Geneva, including a sophisticated spa, distinctive
restaurants and lounges, spectacular award-winning golf courses and downhill skiing. These relationships provide
built-in year-round occupancy for the vacation club and a steady source of revenues for the resort," noted
Otto.
Don Harrill, president and CEO of Orange Lake said, "We are excited to work with Marcus Hotels and Resorts.
The Marcus Vacation Club is a high-quality product on its own that becomes even more marketable with the additional
amenities provided by the Grand Geneva complex. The beautiful location and activities for all ages make this a
perfect vacation destination. We are anxious to begin marketing this unique property to our broad base of current
and potential owners."
"The vacation ownership industry is changing, as property owners consolidate and form exchange clubs that
enable timeshare owners to exchange units among other club members, typically at a lower fee than through the large
global vacation exchange companies. The Marcus Vacation Club expands our base of owners and adds a great new property
to our portfolio," added Harrill.
Marcus Hotels and Resorts developed the Marcus Vacation Club concept and began construction on the development
in 1999. The first units opened in 2000. Situated among beautiful rolling hills, the units are attractively designed
and furnished, with complete kitchens and relaxing patio areas. Many units also have oversized spa tubs and fireplaces.
Otto said there will be a seamless transition for Marcus Vacation Club owners to Orange Lake. The Marcus Vacation
Club will continue to be affiliated with Resort Condominiums International (RCI), a global vacation exchange provider.
About Marcus Hotels and Resorts
In addition to the Marcus Vacation Club, Marcus Hotels and Resorts owns or operates a distinctive portfolio of
13 hotels and resorts, with an additional two properties currently under development. The company owns and operates
the Four Points by Sheraton Chicago Downtown/Magnificent Mile, Chicago, Ill.; the Grand Geneva Resort in Lake Geneva,
Wis.; the Hilton Madison at Monona Terrace in Madison, Wis.; the Hilton Milwaukee City Center in Milwaukee, Wis.;
Hotel Phillips in Kansas City, Mo.; the Pfister Hotel in Milwaukee, Wis.; the Westin Columbus in Columbus, Ohio;
and the Wyndham Milwaukee Center in Milwaukee, Wis. The company also manages five properties for other owners:
Beverly Garland's Holiday Inn, North Hollywood, Calif.; the Crowne Plaza-Northstar, Minneapolis, Minn.; Hilton
Garden Inn - Northwest, Houston, Tex.; Hotel Mead, Wisconsin Rapids, Wis.; and Timber Ridge Lodge and Water Park,
Lake Geneva, Wis. Properties under construction are the Platinum Hotel & Spa, a luxury condominium hotel project
in Las Vegas now scheduled to open in September 2006, and the Hilton Skirvin, a public/private historic hotel renovation
project in Oklahoma City, Okla., scheduled to open in February 2007.
About The Marcus Corporation
Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries.
The Marcus Corporation's movie theatre division, Marcus Theatres®, owns or manages 501 screens at 44 locations
in Wisconsin, Illinois, Minnesota and Ohio, and one family entertainment center in Wisconsin. The company's lodging
division, Marcus Hotels and Resorts, owns or manages 13 hotels and resorts in Wisconsin, Illinois, Ohio, Missouri,
California, Minnesota, and Texas and one vacation club in Wisconsin. For more information, visit the company's
Web site at www.marcuscorp.com.
About Orange Lake Resort & Country Club
Orange Lake was founded in 1982 by Kemmons Wilson, the legendary business entrepreneur who founded the successful
Holiday Inn hotel chain. Orange Lake is one of Walt Disney World's® closest neighbors, encompassing more than
1,250 acres of pristine surroundings and hosting 2,000 villas, suites and accommodations that serve as the vacation
"home-away-from-home" to more than 100,000 owners in all 50 U.S. states and 120 countries. The company
has received over 150 industry awards for excellence from the American Resort Development Association.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify
for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may generally be identified as such because the context of such statements include words
such as we "believe," "anticipate," "expect" or words of similar import. Similarly,
statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking
statements are subject to certain risks and uncertainties which could cause results to differ materially from those
expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience
appeal, of motion pictures for our theatre division, as well as the maintenance of a suitable window between the
date such motion pictures are released in theatres and the date they are released to other distribution channels;
(2) the effects of increasing depreciation expenses and preopening and start-up costs due to the capital intensive
nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect
to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter
in the Midwest and in our other markets; (5) the effects on our occupancy and room rates from the relative industry
supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions
in our markets; (7) our ability to identify properties to acquire, develop and/or manage and continuing availability
of funds for such development; and (8) the adverse impact on business and consumer spending on travel, leisure
and entertainment resulting from terrorist attacks in the United States, the United States' responses thereto and
subsequent hostilities. Shareholders, potential investors and other readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are made only as of the date of this press release and we
undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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Contact: Marcus Hotels and Resorts Bill Otto (Media), 414-905-1200 or The Marcus Corporation Douglas A. Neis (Investors), 414-905-1100
Source: The Marcus Corporation