VISTANA INC. REPORTS SIGNIFICANT INCREASE IN REVENUES

Press Release: Vistana

May 6, 1999
Vistana, Inc., a leading developer and operator of vacation ownership resorts, yesterday reported significant growth in revenues and net income for the first quarter of 1999.

For the first quarter ended March 31, 1999, revenues were $67.7 million, a 43.4% increase over the $47.2 million recorded in the first quarter 1998. Vacation ownership interest (VOI) sales for the first quarter 1999 increased 49.6% to $50.1 million from $33.5 million in the first quarter 1998. The number of VOI's sold during the first quarter 1999 increased 34.9% to 4,670 from 3,463 in the first quarter 1998. The average sales price per interval was $9,938 for the first quarter 1999, an increase from $9,684 during the
corresponding period in 1998. Annualizing alternate year VOI sales, the number of VOI's sold during the first quarter 1999 increased to 3,673 from 2,842, and the average sales price per interval increased to $12,637 from $11,800, over the first quarter 1998. Interest income for the first quarter 1999 increased 29.5% to $7.9 million from $6.1 million in the first quarter 1998.

Results for the first quarter 1999 included a one-time charge of $0.6 million, or $0.03 per diluted share, (net of taxes) for the cumulative effect of a change in accounting principle (the "Accounting Change'')
resulting from the adoption of Statement of Position 98-5, "Reporting on the Cost of Start-up Activities'' (SOP 98-5), issued by the American Institute of Certified Public Accountants.

Net income before the cumulative effect of the Accounting Change for the first quarter 1999 was $4.7 million compared to net income of $3.5 million for the first quarter 1998, an increase of 34.3%. Net income per diluted share before the cumulative effect of the Accounting Change for the first quarter 1999 increased 37.5% to 22 cents from net income per diluted share of 16 cents in the first quarter 1998. Net income after the cumulative effect of the Accounting Change was $4.1 million or 19 cents per diluted
share for the quarter ended March 31, 1999, compared to $3.5 million or 16 cents per diluted share in the same period in 1998, an increase of 17.1% and 18.8%, respectively.

Weighted average diluted shares outstanding for the first quarter 1999 were 21,292,747 compared to weighted average diluted shares of 21,629,749 for the first quarter 1998, a decrease of 1.6%.

Financial results for the quarter ended March 31, 1999, include the recognition of VOI sales and related costs previously deferred under the percentage of completion method for the Company's Embassy Vacation Resort ("EVR'') at Scottsdale. As a result of substantially completing the first phase of the EVR at Scottsdale as of March 31, 1999, approximately $3.8 million of prior period VOI sales were recognized, contributing approximately $0.5 million in net income, or $0.02 per diluted share.

"We are very pleased with Vistana's record first quarter performance, which was fueled by strong growth in vacation ownership sales in all of our markets,'' said Raymond L. (Rip) Gellein, Vistana's Chairman and Co-Chief Executive Officer. Jeff Adler, President and Co-Chief Executive Officer, said "our employees are continuing to do an outstanding job of managing our existing business while building for the future. With the opening of our new properties in the Colorado mountains and Scottsdale, Arizona, we now operate ten vacation ownership resorts compared to only six a year ago.''

Headquartered in Orlando, Florida, Vistana, Inc. operates ten vacation ownership resorts, four in Florida, three in Colorado, one in South Carolina and two in Arizona. Resorts in the planning/development stage include the PGA Vacation Resort by Vistana in Port St. Lucie, Florida, Harborside at Atlantis on Paradise Island in The Bahamas, and a successor to Vistana Resort in Orlando. Founded in 1980, the Company has over 2,100 units in operation and an ownership base of more than 80,000 owners residing in over 100 countries. The Company's common stock is traded on the NASDAQ National Market under the symbol VSTN.