Berger & Montague, P.C. Files Class Action Against Sunterra Corp.

Company Press Release: Berger & Montague, P.C.

February 17, 2000
PHILADELPHIA, PA -- The following notice is issued by the law firm of Berger & Montague, P.C. on behalf of its client, who on February 16, 2000, filed a lawsuit in the United States District Court for the Middle District of Florida on behalf of all persons who purchased the common stock of Sunterra Corp. (NYSE: OWN) during the period of October 4, 1998 through January 19, 2000, inclusive (the ``Class Period'').

The Complaint alleges that Sunterra and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of l934 and Rule 10b-5 promulgated thereunder by, among other things, misrepresenting and/or omitting material information from press releases and SEC filings. On January 20, 2000, the company revealed that its fourth quarter results would be between $.01 to $.08 per share, compared with $.31 per share for the prior year, and that the company planned to take a $38 to $45 million charge in order to write-off delinquent receivables improperly left on its books.

The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts.

``The quality of lawyering on both sides, but I am going to stress now on
the plaintiff side, simply has not been exceeded in any case, and we have
had some marvelous counsel appear before us and make superb arguments,
but they really don't come any better than Ms. Savett ... plaintiff's
counsel were as good as they get.`` In Re U.S. Bioscience Securities
Lit., Civil Action No. 92-0678 (E.D. Pa.) (Settled for $15.25 million)
``... you have acted the way lawyers at their best ought to act. And I
have had a lot of cases ... in 15 years now as a judge and I cannot
recall a significant case where I felt people were better represented
than they are here ... I would say this has been the best representation
that I have seen.`` In Re Waste Management Inc. Securities Litigation.
(Settled for $220 million)

The law firm of Berger & Montague, P.C., has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries in excess of two billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Waste Management, Inc., Sunbeam, Ikon Office Solutions, Inc. and Worldport Communications.

If you purchased Sunterra common stock between October 4, 1998 and January 19, 2000 you may move the Court no later than sixty days from January 21, 2000 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.

If you have any questions about this notice or the action, or with regard to your rights, please contact: Sherrie Savett at 888-891-2289, 1622 Locust Street, Philadelphia, PA l9103. If you prefer you can e-mail the firm at InvestorProtect@bm.net with your name, mailing address and telephone number.

Sherrie Savett, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
215-875-3000
888-891-2289
Fax: 215-875-4604
Website: http://home.bm.net
e-mail: InvestorProtect@bm.net
SOURCE: Berger & Montague, P.C.