Phase one of the development will consist of 84 units in seven buildings to be constructed on a ridge overlooking the first fairway of the resort's Highlands golf course. Sales for the project are expected to begin in June 1999, with occupancy of the first building planned for May 2000. The units will be priced between $10,000 and $16,000 per week, depending upon the week and unit selected. The vacation ownership units may also include special Grand Geneva amenities such as preferred access and pricing for the resort's golf courses, tennis courts, swimming pools, ski hills, spa, restaurants and shops. 

The vacation ownership units will be affiliated with RCI, the world's largest timeshare exchange organization comprised of over 3,200 affiliated resort properties. In addition, RCI Consulting, Inc. will assist Marcus Hotels and Resorts in setting-up the sales and 
marketing programs and organization for the project. 

"The new vacation ownership development provides an excellent opportunity to significantly increase revenues and operating profit at the already-successful Grand Geneva. In addition to the sale of the vacation ownership units, we will also benefit from the increased number of individuals and families enjoying the property's sports facilities, spa and restaurants," said Lee A. Berthelsen, president of Marcus Hotels and Resorts. 

"The Grand Geneva's convenient location, combined with the amenities and year-round activities of the resort, provide everything a timeshare owner could ask for. We're very pleased to have a major hotel company affiliate with us and look forward to assisting Marcus Hotels and Resorts in getting its sales and marketing program off to a successful start," said Jim Beckham, vice president of RCI Consulting. 

The project will feature two-bedroom "lockout" units, which have proven to be very successful in the industry. This concept enables owners to purchase a two-bedroom unit that can be used either as a single unit or divided into two one-bedroom units, providing the 
flexibility of using one unit for vacation and trading the other unit through the RCI network. 

"Our extensive research showed there is a high concentration of prospective timeshare owners in our three target markets of Milwaukee and Madison, Wisconsin, and Chicago/Northern Illinois," said Berthelsen. "We will be taking a conservative approach to the new complex, selling one building at a time, with a long-term plan for about 250 units. The resort's rolling 1,300 acres will enable us to create homeowner communities at different locations on the property, providing owners with beautiful views and added privacy," Berthelsen added. 

"The vacation ownership concept has had a complete renaissance over the past five years as well-known developers like The Walt Disney Company have entered the market. We are excited about the growth potential that vacation ownership offers for the Grand Geneva," Berthelsen said. 

Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is comprised of four divisions: limited-service lodging, movie theatres, hotels/resorts and restaurants. The company operates 161 Baymont (formerly Budgetel) Inns and Baymont Inns  Suites (105 company-owned and 56 franchised) in 30 states and five Woodfield Suites in Wisconsin, Colorado and Ohio; 398 movie screens in Wisconsin, Illinois, Ohio and Minnesota and one family entertainment center in Wisconsin; three hotels and a resort in Wisconsin, one hotel in Minnesota, one hotel and a resort in California and one resort in Michigan; and 30 KFC restaurants in Wisconsin. 

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because of the context of the statement will include words such as the company "believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.