New Fairfield CEO Expands Scope of Merrill Lynch/Stephens Engagement

Business Wire, Oct 18, 1999

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 18, 1999--

Jim Berk, newly appointed CEO of Fairfield Communities, Inc. (NYSE: FFD), one of the nation's largest vacation ownership companies, has initiated a comprehensive strategic review and has expanded the Merrill Lynch & Co. and Stephens Inc. engagements in support of this process. "My first and most important priority is to develop a clear vision for Fairfield which can leverage its current strengths to promote long term sustainable growth," said Berk.

Mr. Berk, who joined the Company October 1, added, "We have initiated a complete business and financial review in collaboration with Fairfield's senior management and external advisors. The scope of the review encompasses every area of the Company's business, including Fairfield's marketing capabilities, new product and resort development, operating systems, member services, information technology, recruiting and training programs, sources of capital, and operating margins.

"Upon completion of this thorough analysis, we can then determine the best strategic options available to Fairfield, including but by no means limited to acquisitions, partnerships, or sale of the Company.

"It is clear that the current stock price does not accurately reflect current performance, long-term growth prospects and our solid balance sheet. To this end, I am fully committed to exploring all the opportunities available to Fairfield and will act on those that meet our objectives of enhancing the quality of the Company and maximizing shareholder value," Berk concluded.

Fairfield Communities, Inc., is one of the largest vacation ownership companies in the United States. The Company markets vacation products and manages resort properties that provide quality recreational experiences at 26 locations in eleven states and the Bahamas, to more than 250,000 Fairfield property owners. Fairfield currently has five new resorts under development.

Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, general industry and economic conditions; interest rate trends; regulatory changes; availability of real estate properties; competition from national hospitality companies and other competitive factors and pricing pressures; shifts in customer demands; the continued availability of financing in the amounts and at the terms necessary to support the Company's future business as well as other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the Annual Report and Form 10-K for the year ended December 31, 1998.