MARRIOTT VACATION CLUB BEGINS CONSTRUCTION

Press Release: Marriott International, Inc.

February 19, 1999
Marriott Vacation Club International (MVCI), Marriott's vacation ownership division, a wholly owned subsidiary of Marriott International, Inc. (MAR/NYSE), broke ground last month on its first California coast resort and third vacation ownership resort in the state. Located on the rolling hills overlooking the Pacific Ocean between Newport Beach and Laguna Beach, the first phase of Marriott's Newport Coast Villas will be ready for owner and guest occupancy mid-year 2000. On-site sales of Marriott's Newport Coast Villas began last month.

"This venture is the result of great cooperation between the Irvine Company, Orange County, the city of Newport Beach and Marriott," said Steve Weisz, president of Marriott Vacation Club International. "We are tremendously thankful for the support and cooperation we received from residents and community groups."

Marriott's Newport Coast Resort will consist of 650 two-bedroom luxurious villas, each featuring spectacular ocean views. The villas will offer a private balcony, a large master bath, utility room with washer and dryer, fully equipped kitchens, and both living and dining areas. Among its planned recreational amenities include privileged access to Pelican Hill Golf Club, six outdoor swimming pools, and eight outdoor spas. The resort will also feature a tennis facility and fitness center. A site for a fine-dining restaurant is also planned.

In accordance with the concept originally developed by the Irvine Company for this prestigious location, the resort incorporates a variety of building types including a resort center and villa structures. The site development reflects the terracing style of a coastal Mediterranean hillside community.

The California coastline has consistently been one of the most desired locations by both MVCI's existing owners and customers according to Marriott officials. Marriott entered the vacation ownership resort industry in 1984. Today, it is the world's largest system of branded vacation ownership resorts with properties in 18 locations around the world and more than 120,000 villa owners from 61 countries. More than 20,000 Californians are owners of a Marriott vacation ownership resort villa.

Marriott's Newport Coast Villas is the company's third vacation ownership resort to be developed in California, joining the Marriott's Desert Springs and Desert Spring Villas II resorts in Palm Desert. Marriott Vacation Club owners enjoy a range of flexible options and benefits that enable them to purchase weeks within a particular season and to change dates within that time period from year to year.

Owners may also choose to stay at their home resort or exchange weeks at one of 38 Marriott's Vacation Club resorts, or to exchange weeks for vacations at over 1,600 Interval International affiliated resorts around the world. Owners may also trade their weeks for Marriott Rewards points that can be redeemed for stays at Marriott properties worldwide or other travel opportunities including airfare and car rental, as well as for cruises.