PROMUS AND VISTANA MODIFY RELATIONSHIP

Source: Vistana Inc.

March 14, 1999
Promus Hotel Corporation and Vistana, Inc. Friday announced they are holding discussions to modify the exclusive nature of their relationship in order to increase development opportunities for both companies.

The discussions relate to an exclusive joint venture agreement which has restricted Promus from independently developing new vacation resorts and Vistana from developing resorts with other hotel brands. Promus has franchised to Vistana the Embassy Vacation Resorts in Myrtle Beach, S.C. and Scottsdale, Ariz., and the Hampton Vacation Resort in Kissimmee, Fla. In addition, the companies are currently in discussions regarding other joint venture opportunities.

Promus Chairman, President and CEO Norman P. Blake, Jr. said the change sought to eliminate an exclusive provision in the joint venture agreement in order to allow both parties greater flexibility in their future development activities.

"Vistana is a premier vacation resort developer, and we expect to develop future projects together," Blake said. "We have enjoyed a good relationship with Vistana and look forward to leveraging their expertise in the dynamic vacation ownership industry."

Vistana Chairman and Co-Chief Executive Officer Raymond L. (Rip) Gellein said, "This change would allow Vistana to pursue other hotel brand opportunities while continuing our good relationship with Promus. We are strong believers in brands in the vacation ownership industry and are in discussions with other hospitality companies regarding their brands."

Promus Hotel Corporation is one of the world's premier lodging companies, with systemwide annual revenues of over $5 billion. The company owns, operates or franchises more than 1,325 hotels with more than 192,000 rooms throughout the United States, Canada, Mexico and Latin America. Promus is the franchisor and operator of Doubletree Hotels & Guest Suites, Embassy Suites, Homewood Suites, Club Hotel by Doubletree, Hampton Inn, Hampton Inn & Suites, Embassy Vacation Resorts and Hampton Vacation Resorts brands. The Company also manages non-Promus branded hotels as well as facilities in its University Hotel and Conference Center division.

Headquartered in Orlando, Vistana, Inc. operates nine vacation ownership resorts, four in Florida, three in Colorado, one in South Carolina and one in Arizona. Vistana's tenth resort, Embassy Vacation Resort at Scottsdale, began pre-opening sales during the second quarter of 1998 and is scheduled to open in the first quarter of 1999. 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 1,800 units in operation and an ownership base of approximately 79,000 owners residing in over 100 countries. The Company's common stock is traded on the Nasdaq National Market under the symbol VSTN.