ResortQuest International Announces Two Strategic Acquisitions; Increases Presence in Popular Outer Banks, N.C. and Thriving Pensacola, Fla. Markets

Business Wire, June 1, 2000

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 1, 2000

ResortQuest International, Inc. (NYSE: RZT), the first brand name and online booking service (ResortQuest.com) in vacation condominium and home rentals, sales and property management services, today announced that the company has acquired Sand and Sea, Inc., its second management company in the Outer Banks, N.C., a chain of barrier islands along the East Coast. The company also said that it had increased it presence in the fast-growing Pensacola, Fla. resort market with the purchase of Langford Realty, Inc. The two acquisitions are expected to be immediately accretive to 2000 earnings. Sand and Sea, Inc.

Established in 1978, Sand and Sea provides property management services for more than 200 vacation rental properties in the northern Outer Banks. Together with ResortQuest's B&B on the Beach resort operations, the company now manages more than 800 units in the highly popular northern Outer Banks.

"The Sand and Sea acquisition gives us critical mass in the Outer Banks, particularly in Corolla and Duck," said David L. Levine, chairman, president and chief executive officer. "Sand and Sea expands our Outer Banks rental inventory by more than 35 percent and increases the number of units under management to more than twice the number of our nearest competitor. This kind of presence enables us to market more effectively to attract the greatest number of guests and owners and should represent a sustainable competitive advantage. Additionally, the Sand and Sea operations are ideal for integration into B&B on the Beach, and we expect additional cost synergies to be realized."

"We're delighted to be joining ResortQuest International," said Debby Garcia, Sand and Seas principal. "ResortQuest is the one company that can offer our employees, owners and guests advanced technology, unique services and leadership in the premier vacation industry while embracing each individual's needs." Langford Realty, Inc.

"We also acquired Langford Realty in Perdido Key, a resort area with significant development potential that is part of the Pensacola, Fla. market," said Levine. "Langford Realty was established in 1987 and is a well-known property management operation with approximately 100 rental units, which expands our presence in the Florida panhandle to more than 2,700 units."

"Both our homeowners and our guests will benefit from ResortQuest's web site, ResortQuest.com, which allows guests to research their destination in advance and book their reservations online and in real time," said Cecilia and Hurley Langford, Langford Realty principals. "We see our association with ResortQuest as a great opportunity to gain a competitive edge through more national exposure and rental opportunities for our owners, growth opportunities for our employees and a continuity of management skills for the homeowner associations that we represent."

"These are ideal acquisitions, both strategically and from a timing standpoint," said James S. Olin, ResortQuest's chief operating officer. "The completion of these purchases prior to their high season means that both will be immediately accretive to 2000 earnings. We will continue to selectively seek strategic tuck-in and new market acquisitions."

Including Sand and Sea and Langford Realty, ResortQuest now offers more than 17,500 vacation rentals in 40 premier resort destinations across the U.S. and in Canada.

ResortQuest International provides a one-stop resource for vacation home and condominium rentals in 40 premier resort destinations in North America. ResortQuest's total portfolio now comprises more than 17,500 vacation rental properties. ResortQuest is the first branded vacation rental, property management and real estate sales company to offer online booking through ResortQuest.com.

ResortQuest's locations include Gulf Shores, Ala.; Scottsdale and Tucson, Ariz.; Palm Desert and Palm Springs, Calif.; Aspen, Breckenridge, Crested Butte, Dillon, Snowmass Village and Telluride, Colo.; Bethany Beach, Del.; Beaches of South Walton, Bonita Springs, Captiva Island, Destin, Ft. Myers, Ft. Myers Beach, Marco Island, Naples, Navarre Beach, Okaloosa Island/Ft. Walton Beach, Orlando, Pensacola, Sanibel Island and Vanderbilt Beach, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; Big Sky, Mont.; the Outer Banks of North Carolina; Lake Erie Islands, Ohio; Sunriver, Ore.; Hilton Head Island, S.C.; Deer Valley, Park City and The Canyons, Utah; and Whistler, British Columbia.

This filing contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to the risks associated with: successful integration of the Founding Companies and additional required companies factors affecting internal growth and management of growth, ResortQuest's acquisition strategy and availability of financing, the tour and travel industry, seasonality, quarterly fluctuations and general economic conditions, dependence on technology and travel providers, and other factors discussed in the Registration Statement. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this filing will prove to be accurate. Indeed, actual results may differ materially from those expressed or implied in these statements. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information s should not be regarded as a representation by ResortQuest or any other person that the objectives and plans of the company will be achieved.