Renamed the Hilton La Jolla Torrey Pines, the resort is located adjacent to two world-famous Torrey Pines Golf Courses (36 holes) along the Pacific Coast in La Jolla. It is within close driving distance to many of San Diego's world-famous tourist attractions including the San Diego Zoo, Sea World and public beaches.

The property's close proximity to the University of California, San Diego, and many of the area's leading scientific and medical research firms, along with its nearly 20,000 square feet of meeting facilities, make it ideally positioned as one of the area's leading business hotels.

Built and developed by Taisei Corp. in 1989, Hilton La Jolla Torrey Pines' 394-guest rooms each contain a work desk, two telephones (one with a data port), an in-room safe and a self-serve mini bar. All guest rooms have balconies and the majority have views of both the
golf courses and the Pacific Ocean.

Additional guest amenities include an outdoor swimming pool and whirlpool, fitness center, jogging trails along the Torrey Pines State Reserve, lighted tennis courts, putting green, 24-hour room service, a restaurant and lounge.

"The acquisition of this property adds another spectacular resort to Hilton's growing portfolio of first-class, full-service properties.

The purchase price represents a 7.5 times multiple of Hilton's projected 1999 EBITDA (earnings before interest, taxes, depreciation and amortization). This transaction brings our total acquisition activity of outstanding full-service hotels for 1998 to almost $950
million," said Matthew J. Hart, executive vice president and chief financial officer, Hilton Hotels.

"This hotel was one of our landmark properties in the United States. We are very happy with this hotel investment and its results.

I hope this transaction will be the foundation to a new relationship with Hilton," said Ryoji Takada, president of Taisei America Corp. and the managing partner of the owning partnership.

Hamptons International, a leading international investment banking firm with headquarters in Chicago, acted as exclusive financial advisor to the seller, Torrey Pines Hotel Associates.

Lawrence Vogler, executive managing director of Hamptons, stated: "This transaction is truly an example of both parties benefiting from the sale. Hilton will gain by expanding their market share in the highly successful Southern California hotel market, while the previous owner was able to capitalize on investor demand for an exceptional asset."

Taisei Corp., with annual revenue of $13 billion, is one of the world's largest construction and development companies.

Hilton Hotels is recognized internationally as a preeminent lodging hospitality company. The company develops, owns, manages or franchises hotels, resorts and vacation ownership properties.