In addition to acquiring The Regent Sydney, Walton Street and Four Seasons intend to undertake a major refurbishment program to enhance the Hotel prior to the 2000 Summer Olympics. Four Seasons expects to hold a minority ownership interest in the Hotel.

Walton Street Principal, Andrew G. Bluhm, commented today, "We are delighted to have secured the ownership on behalf of our investors of this unique and prestigious property. The Regent Sydney, with its proximity to the city's famed Opera House, has long been one of the world's most recognizable urban landmarks. With this purchase, plus the planned capital investment, The Regent Sydney will be exceptionally positioned to play an important role as Australia prepares to host the 2000 Summer Olympics".

Located in the historic Rocks district along Sydney's picturesque waterfront, The Regent Sydney opened in 1982 and quickly earned a place among the world's top hotels. Known for its harbor views and superb personalized service, the Hotel currently includes 594 rooms and suites. The planned capital program contemplates a complete renovation of the Hotel, including a reduction in the number of rooms, an increase in the size of the remaining rooms and new suites, upgraded bathrooms, and a repositioning of the food and beverages outlets.

Four Seasons' Chairman and Chief Executive Officer Isadore Sharp commented, "The Regent Sydney is about to begin a new chapter in its long and successful history. The upcoming Olympics will be a showcase for Australian tourism, and by virtue of this agreement, we are delighted to secure a long term presence in this important market".

Mr. John Smith and Mr. Vasso Zographou of Hotel Consultants, Horwath Asia Pacific Pty Ltd, in Sydney, were appointed Receivers and Managers of the Hotel in July 1997 by a syndicate of lenders to the Hotel's ownership entities. The Hotel traded successfully during the Receivership and an extensive international sale program was initiated by the Receivers in January 1998.

"There was strong interest in the Hotel from an array of local and foreign purchaser candidates and bidding was highly competitive - we are pleased with the outcome in what has been a highly complex and challenging Receivership", Mr. Smith commented.

Walton Street Capital, L.L.C. was formed in 1995 by former senior executives of JMB Realty Corporation and its affiliates and Mr. Neil G. Bluhm, co-founder of JMB Realty Corporation, to focus exclusively on investing their own capital in value added and opportunistic real estate investments in partnership with institutional and private investors. The principals of Walton Street Capital direct the investment and management of the Walton Street Real Estate Funds. The Walton Street Real Estate Funds have over US$400 million of discretionary capital to be invested on a leveraged basis, plus additional funds for investment on a co-investment basis.

Four Seasons Hotels and Resorts is the world's leading operator of luxury hotels and currently manages 42 properties in 18 countries, primarily under the Four Seasons and Regent brand names. In early 1998, Four Seasons acquired management of The Ritz Hotel Lisbon in Portugal and a luxury resort in the Maldives, now renamed Four Seasons Resort Maldives at Kuda Huraa; and opened a second resort in Bali (at Sayan). Additional openings in early 1999 include a hotel in Las Vegas, Nevada and a resort in Punta Mita, Mexico. While most hotels bear the respective names of Four Seasons or Regent, some do not, including the Ritz-Carlton in Chicago and The Pierre in New York.