Fairfield Resorts Celebrates Record $500 Million In Annual Sales

Developer Becomes First Pure Timeshare Company Worldwide to Reach Milestone

Press Release: Fairfield Resorts, Inc.
December 21, 2001
ORLANDO, FL -- Fairfield Resorts, Inc., one of the largest vacation ownership companies in the world, today announced that for the first time ever, the company has surpassed $500 million in annual vacation ownership sales for 2001.

Fairfield, acquired by Cendant Corporation (NYSE: CD) earlier this year, is the only pure timeshare company in the world to exceed one half billion dollars in annual vacation ownership sales.

``This is a remarkable milestone for our company, particularly during a year in which the travel industry has faced enormous challenges,'' said Franz S. Hanning, president and CEO, Fairfield Resorts. ``The value and appeal of vacation ownership continues to be a popular option for America's vacationing families.''

Fairfield Resorts specializes in the development, marketing and sales of timeshare vacation ownership and leisure products at 34 resort locations in 12 states, including Florida, Alexandria/Washington D.C., Missouri, and Colorado. During 2001, the company developed and opened two new luxury resorts in Las Vegas, Nev. and Daytona, Fla., and acquired a third in Anaheim, Calif. More than 340,000 families own timeshare with Fairfield Resorts, and an estimated 625,000 families will visit a Fairfield Resorts location this year alone.

While Fairfield's tour-flow and sales were not immune to the aftereffects of September 11, Hanning believes the company's balanced portfolio of resort locations in both fly-to and drive-to destinations helped Fairfield rebound quickly.

``We learned long ago that not everyone wants to get on a plane each time they vacation,'' Hanning said. ``Fairfield destinations in places like Nashville, Tennessee and Branson, Missouri have always been popular with our customers, and focusing our marketing efforts on these primarily drive-to locations became especially important following September 11.''

Hanning also credits the evolution of the Fairfield timeshare product. ``We provide our owners with a flexible points-based deeded timeshare that gives them the freedom to choose where and when they vacation each year, from Fairfield locations domestically to thousands of worldwide resort destinations,'' Hanning stated. ``Industry surveys indicate that more than 85 percent of vacation owners are satisfied with their timeshare purchase, and more than 87 percent cite the flexibility of vacation ownership as its most attractive feature.''

The motivating factors for consumers who purchased timeshare in the weeks following September 11 appear to remain unchanged. Thomas and Sharon Schrader of Tucson, Arizona, for example, who made their first timeshare purchase last month at Fairfield Las Vegas at Grand Desert, believe owning timeshare will help ensure that they vacation regularly, regardless of the circumstances.

``Running a family business sometimes makes you believe you can never get away. Because we now own our future vacations, there won't be any excuses,'' Sharon said. ``It's paid for, it's flexible, and we can see someplace new each time. Call it a forced holiday, but we like to think of it as our rest and relaxation insurance policy. No matter what, we're taking our vacations and we're going to enjoy them.''

Fairfield Resorts began as a retirement community developer near Shirley, Arkansas in 1966. In 1977, Fairfield's evolution took a dramatic and innovative turn with the development of FairShare, the company's first timeshare product modeled after a European concept that allowed families to enjoy higher quality vacations while maintaining equity in a resort. Fairfield was one of the first U.S. developers to move from traditional fixed-week timeshare ownership to a points-based exchange program with the launch of FairShare Plus in 1991. Cendant Corporation completed its acquisition of Fairfield Resorts in April 2001.

``When Cendant announced its acquisition plans late last year, I remarked on Fairfield's strong management and outstanding sales and marketing capabilities,'' said Cendant Chairman, President and CEO, Henry R. Silverman. ``Fairfield is delivering on its promise, and we are exceptionally pleased with their accomplishments.''

Fairfield Resorts, Inc., with more than 340,000 vacation-owning households and more than $500 million in annual vacation ownership sales, is the largest pure timeshare company in the world, specializing in the marketing and sales of innovative vacation and leisure products. Fairfield Resorts is a subsidiary of Cendant Corporation (NYSE: CD), a diversified global provider of business and consumer services primarily within the real estate and travel sectors. Visit Fairfield Resorts at www.eFairfield.com.

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Contact: 

     Fairfield Resorts, Inc.
     Adam Schwartz, 973/496-8068
     adam.schwartz@cendant.com