Press Release
January 8, 2001
ORLANDO, FL -- Fairfield Communities, Inc. (NYSE: FFD) today announced the acquisition of Dolphin's Cove Resort
in Anaheim, California, from Dolphin's Cove Resort, LTD, a Winner's Circle Resorts International Inc. affiliate.
The 136-unit resort, which began active sales three years ago and includes a mix of one-, two- and three-bedroom
suites, is adjacent to Disney's California Adventure, the new Disney theme park scheduled to open in February 2001.
The acquisition increases Fairfield's membership base to more than 340,000.
Along with the resort and its unsold inventory, Fairfield will acquire property management rights at the resort,
as well as a portfolio of quality receivables from previous vacation ownership interest sales. Under the terms
of agreement, Fairfield also acquired option rights to develop a vacation ownership resort, oceanfront in Southern
California. The multi-purpose project is expected to include 150 vacation ownership units.
"With the Dolphin's Cove acquisition and oceanfront resort, Fairfield continues to strengthen its brand recognition
and presence in the Western US," said Jim Berk, Fairfield's President and Chief Executive Officer. "Dolphin's
Cove is an excellent addition to our portfolio of Gold Crown resorts and is a very strategic asset from a marketing
standpoint. These California projects complement our existing presence in the west and allow us to further leverage
our strategic alliance with Harrahs Entertainment."
On November 9, 2000, the Company announced an expanded alliance agreement with Harrahs Entertainment. Through this
partnership, Fairfield sales centers will be opened at four Harrahs resorts throughout Nevada. The Las Vegas sales
center, featuring a full-sized model unit, will support sales of Fairfield's flagship western resort in Las Vegas,
the 416-unit Fairfield Grand Desert scheduled to open July 2001. In addition to the Grand Desert, Fairfield's western
resorts now open or under development include Fairfield Pagosa and Fairfield Durango in Colorado; Fairfield Flagstaff
and Fairfield Sedona in Arizona; and Harbortown Point in Ventura, California.
Jim Watkins, President and CEO of Winners Circle Resorts, will join Fairfield as a consultant to lead development
into additional California markets. The existing sales force at Dolphin's Cove will continue with the resort under
Fairfield ownership. "We have assembled an outstanding and loyal team of professionals here," said Watkins.
"They are one of the resort's greatest assets and they are excited about joining the Fairfield system."
Over the past 20 years under Watkins' direction, Winners Circle Resorts -- a lifestyle company specializing in
the development, sales, marketing and management of quality vacation ownership resorts -- has become one of the
most successful and honored vacation ownership companies on the West Coast with more than 30,000 owners.
On November 2, 2000, Fairfield entered into an agreement to be acquired by Cendant Corporation (NYSE:CD). The transaction
is subject to customary conditions and the approval of Fairfield's shareholders. The acquisition is expected to
close in early 2001.
Fairfield Communities, with more than 340,000 vacation-owning households, is the largest vacation ownership company
in the United States, marketing and managing resort properties at 33 locations in 12 states and the Bahamas. This
year over 625,000 families will visit Fairfield resorts. Fairfield operates over 32 dedicated sales centers and
manages over 110 timeshare and whole ownership resort associations.
Except for historical information contained herein, this press release contains forward-looking statements that
involve risks and uncertainties, including, but not limited to, general industry and economic conditions; interest
rate trends; regulatory changes; availability of real estate properties; competition from national hospitality
companies and other competitive factors and pricing pressures; shifts in customer demands; the continued availability
of financing in the amounts and at the terms necessary to support the Company's future business as well as other
risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including
the Annual Report and report on Form 10-K for the year ended December 31, 1999.
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Contacts: Fairfield Communities, Inc.
Jim Berk, President and CEO
(407) 370-5210
Morgen-Walke Associates
Michele Katz, Michael Polyviou
Press: Steven DiMattia
(212) 850-5600
Dolphins Cove Resort Ltd.
Jim Watkins
(858) 755-8075