EQUIVEST FINANCE, INC. TO ACQUIRE SIX TIMESHARE RESORTS

Press Release: Equivest Finance, Inc.

February 19,1999
Equivest Finance, Inc. (NASD:EQUI) yesterday announced that it has signed a definitive agreement to buy a group of six timeshare resorts, one resort development site and all related management contracts, consumer receivables and related operating assets from The Kosmas Group International, Inc. ("KGI"), of New Smyrna Beach, Florida. Under the agreement, Equivest will acquire timeshare resorts, hotels and properties as follows:

Bluebeard's Castle, St. Thomas, U.S. Virgin Islands: Bluebeard's is an historic property dating to the 1600s, and is currently one of the best-known timeshare properties in the Caribbean.

Elysian Beach Hotel and Resort, St. Thomas, U.S.V.I. : The Elysian is a high-end condominium complex and deluxe hotel immediately adjacent to the Ritz-Carlton hotel on the eastern end of St. Thomas.

Avenue Plaza Hotel and Resort, New Orleans, La. : The Avenue Plaza has 265 units and operates as a full service hotel and timeshare resort facility.

Coconut Malorie Hotel and Resort, Ocean City, Md.: This hotel has 85 units in an all-suite configuration.

Capital City Suites, Washington, D.C.: This property is located on Pennsylvania Avenue between Georgetown and The White House. The property has permits for a planned timeshare resort hotel with more than 60 units. Equivest anticipates constructing a completely new resort utilizing the facade of existing buildings.

In addition to these resorts, Equivest will acquire KGI's interest in the Ocean Gate Resort in St. Augustine, Fl., unless this resort is sold prior to the closing date with Equivest's consent.

The KGI transaction marks the second major acquisition for Equivest in the past six months. In August, 1998, Equivest acquired Eastern Resorts Corporation, which owns or operates six timeshare resorts in Newport, Rhode Island, and another in the Berkshire mountains of western Massachusetts.

The KGI resorts subject to the agreement had total timeshare interval sales in 1998 of more than $20 million. In addition, these resorts have more than 20,000 vacation intervals in existing inventory, with a total sales value at current prices of more than $175 million. By contrast, Eastern Resorts had timeshare interval sales for the full year 1998 of approximately $13 million. Eastern Resorts has approximately 4,100 intervals in current inventory with a total sales value at current prices of approximately $40 million.

Upon completion of the transaction, more than 11,000 existing owners in the KGI resorts would join the existing 12,000 owners in the resorts owned or managed by Equivest. In addition, through its finance company subsidiary, Equivest has approximately 20,000 active timeshare financing customers. Thus, after the acquisition, Equivest will have a total timeshare consumer base of more than 40,000 customers.

Equivest Finance, Inc. is headquartered in Greenwich, Connecticut. Its two operating subsidiaries are Eastern Resorts Corporation of Newport, Rhode Island, and Resort Funding, Inc. of Syracuse, New York.