WestAmerica Signs $6,000,000 Agreement With Sun Development Co. N.V. for Funding

Business Wire, Feb 3, 1999

ORLANDO, Fla.--(BUSINESS WIRE)--Feb. 3, 1999--WestAmerica Corp. (OTC:WACC) announced Wednesday that its subsidiary company WestAmerica Land Co. Inc. has signed a Subscription Agreement with Sun Development Co. N.V., whereby Sun will purchase a fifty percent (50%) interest in WestAmerica Land Co. for $6,000,000.

Sun Development, an Aruba corporation, commenced business in 1973 as the first interval ownership/timeshare resort developer in Aruba, and one of the first in the world. For the past 26 years, Sun Development, which has a customer base in excess of 25,000 people who have purchased vacation ownership from the company, has been in business to develop, market, sell and manage vacation resorts, including timeshare resorts, hotels, master planned mixed use projects and other leisure industry related projects and facilities.

Daniel M. Boyar, chairman and chief executive officer of WestAmerica said: "With Sun Development as our new strategic partner, we gain the experience of a company with 26 years and an award winning track record in the timeshare industry, who now seeks to expand its operations on a global basis. Orlando, Florida, the strongest timeshare market in the world, is the obvious choice for Sun's expansion plans in the United States."

Sun Development has developed, owned and manages four timeshare resorts on the beaches in Aruba, receiving international acclaim as Gold Crown resort affiliates with Resort Condominiums International (RCI). The company has also developed Tierra del Sol, a 560 acre master planned golf community which features a Robert Trent Jones, Jr. designed 18-hole championship golf course operated by the Hyatt Hotel affiliate, Golf Hyatt. In addition Sun has developed Sun Plaza, a four story shopping mall and office complex. The company and its affiliated resorts have approximately 750 employees.

Boyar added: "Sun Development is currently raising $55 million in a new stock offering. They have committed to invest $6 million from the first $18 million they receive from the proceeds of the stock offering, which is anticipated to close during the next 90 days."

WestAmerica received approval in June 1998 for a master planned destination timeshare resort located on 465 prime acres near Walt Disney World in Orlando, Fla. The resort will encompass 750 residential units (38,250 timeshare weeks) along with an array of features and amenities -- including a championship golf course and spa. The first phase will consist of 155 units (7,905 timeshare weeks) and will be built on 35 acres. Based on RCI Consulting's feasibility study, which the company received in October 1997, the expected sellout for the resort is in excess of $460,000,000 over a 10-year period, bringing 20% (pre-tax) to the bottom line.

WestAmerica's timeshare resort will include single-family homes and villas, some featuring 3 bedrooms, 3 baths, with heated pools and spas -- the first project of its kind developed by a public company.

From time to time, the company may issue forward looking statements that involve risks and uncertainties. This press release may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results could differ and any forward looking statements should be considered accordingly.