Fairfield Communities Reports Record Revenue; Diluted EPS Increases 25% to $0.35; Net VOI Sales Increase 24%; Announces Innovative Marketing Program

Business Wire, July 26, 1999

             FAIRFIELD COMMUNITIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF EARNINGS
               (In thousands, except per share amounts)
                             (Unaudited)

                            Three Months Ended     Six Months Ended
                                  June 30,              June 30,
                            -------------------   -------------------
                               1999       1998       1999       1998
                               ----       ----       ----       ----
Revenues
  Vacation ownership
   interests, net           $ 99,206   $ 80,155   $171,964   $140,360
  Resort management           12,517      9,947     24,033     19,547
  Interest                     7,040      8,080     13,964     18,379
  Net interest income and
   fees from qualifying
   special purpose entities    4,925      2,378      9,359      2,776
  Other                        6,798      7,424     10,231     12,861
                            --------   --------   --------   --------
                             130,486    107,984    229,551    193,923
                            --------   --------   --------   --------
Expenses
  Vacation ownership interests -
     costs of units sold      25,611     22,945     45,058     39,620
  Sales and marketing         47,609     37,083     83,064     65,675
  Provision for loan losses    5,132      3,993      8,754      6,910
  Resort management            9,828      8,387     19,132     16,089
  General and administrative   8,191      6,141     16,057     13,283
  Interest, net                1,344      1,828      2,956      5,452
  Depreciation and
   amortization                1,940      1,677      3,947      3,329
  Other                        6,111      4,593     10,062      8,576
                            --------   --------   --------   --------
                             105,766     86,647    189,030    158,934
                            --------   --------   --------   --------

Earnings before provision
 for income taxes             24,720     21,337     40,521     34,989
Provision for income taxes     8,780      8,199     14,647     13,446
                            --------   --------   --------   --------
Net earnings                $ 15,940   $ 13,138   $ 25,874   $ 21,543
                            ========   ========   ========   ========

Basic earnings per share    $   0.36   $   0.29   $   0.59   $   0.48
                            ========   ========   ========   ========
Diluted earnings per share  $   0.35   $   0.28   $   0.57   $   0.46
                            ========   ========   ========   ========

Weighted average shares
 outstanding:

   Basic                      44,028     44,940     43,954     44,608
                            ========   ========   ========   ========
   Diluted                    45,677     47,416     45,470     47,264
                            ========   ========   ========   ========


             FAIRFIELD COMMUNITIES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
               (Dollars in thousands, except par value)

                                               June 30,   December 31,
                                                 1999         1998
                                               ---------    ---------
                                              (Unaudited)

Assets
   Cash and cash equivalents                   $   7,952    $   5,017
   Receivables, net                              205,338      202,849
   Real estate inventories                       133,547      128,397
   Investments in and net amounts due from
     qualifying special purpose entities          38,284       31,917
   Property and equipment, net                    32,346       30,062
   Restricted cash                                11,012       11,154
   Other assets                                   22,778       21,697
                                               ---------    ---------
                                               $ 451,257    $ 431,093
                                               =========    =========

Liabilities and Stockholders' Equity
  Liabilities:
   Financing arrangements                      $  67,724    $  79,441
   Deferred revenue                               23,473       27,085
   Accrued income taxes                           30,371       28,157
   Accounts payable                               27,734       26,550
   Other liabilities                              51,832       47,230
                                               ---------    ---------
                                                 201,134      208,463

Stockholders' Equity:
   Common stock, $.01 par value, 100,000,000
    shares authorized, 50,768,849 and
    50,663,851 shares issued as of
    June 30, 1999 and December 31, 1998,
    respectively                                     508          507
   Paid-in capital                               122,021      120,403
   Retained earnings                             148,585      122,711
   Treasury stock, at cost, 6,286,205 and
     6,496,959 shares as of June 30, 1999
     and December 31, 1998, respectively         (20,991)     (20,991)
                                               ---------    ---------
                                                 250,123      222,630
                                               ---------    ---------
                                               $ 451,257    $ 431,093
                                               =========    =========


                     FAIRFIELD COMMUNITIES, INC.
               SCHEDULE OF SELECTED FINANCIAL DATA (1)
                        (Dollars in thousands)
                             (Unaudited)

                                    Quarters Ended
                  6/30/99    3/31/99   12/31/98    9/30/98    6/30/98
                ------------------------------------------------------

Contracts
 receivable     $ 401,069  $ 374,701  $ 369,992  $ 357,957  $ 331,459
Weighted average
 coupon rate         15.1%      14.9%      14.6%      14.7%      14.7%
Delinquency
 (60-day basis)       1.3%       2.0%       2.3%       1.8%       2.2%
Allowance for
 contracts
 receivable     $  24,806  $  22,012  $  22,343  $  22,660  $  20,736
Write-offs of
 contracts
 receivable,
 net            $   2,338  $   3,953  $   4,029  $   1,724  $   1,099

Total financing
 arrangements   $ 233,303  $ 233,905  $ 222,304  $ 217,114  $ 177,485
Weighted average
 funding cost         7.0%       7.2%       7.5%       7.6%       7.5%

Number of
 Discovery sales    5,014      3,447      3,235      5,781      4,187

Gross VOI
 revenue        $  97,173  $  72,148  $  74,687  $  86,501  $  82,572
Net VOI revenue
 recognition
 (deferral)     $   2,013  $     610  $    (200) $    (229) $  (2,417)

VOI deferred
 revenue at
 quarter end    $   5,206  $   7,615  $   8,225  $   8,025  $   7,796


Condensed statements of earnings of unconsolidated subsidiaries:

Interest income $   7,568  $   6,925  $   6,181  $   5,041  $   3,775
Interest expense:
 Financing
  arrangements      2,613      2,463      2,270      1,936      1,450
 Subordinated
  note to parent      528        461        385        482        423
General and
 administrative       472        442        384        408        218
                -----------------------------------------------------
Total expenses      3,613      3,366      3,039      2,826      2,091
                -----------------------------------------------------
Pretax earnings     3,955      3,559      3,142      2,215      1,684
Provision for
 income taxes       1,425      1,342      1,157        816        620
                -----------------------------------------------------
 Net earnings   $   2,530  $   2,217  $   1,985  $   1,399  $   1,064
                =====================================================

(1)  The Schedule of Selected Financial Data includes the related
     financial information of FRC and FFC II, wholly owned,
     unconsolidated qualifying special purpose entities of Fairfield
     Acceptance Corporation-Nevada.