BEVERLY HILLS, Calif. - April 16, 2002 -- Hilton Hotels Corporation today announced the launch of a new urban vacation ownership product, The Hilton Club(TM), the first of which is scheduled to open December 2002 in Manhattan's Hilton New York hotel. 

The Hilton Club concept establishes a distinctive new niche in the vacation ownership industry by incorporating a spectacular urban setting and a collection of high-end services and exclusive travel privileges tailored for Members Only.
    
The Hilton Club - New York is currently under development as the flagship property in the new Hilton Club Collection(TM), and will be located on two designated floors of the Hilton New York at 1335 Avenue of the Americas. Each of the 78 planned studio; one-and two-bedroom accommodations will feature beautiful decor and a host of exclusive amenities. Pre-opening sales are slated to begin in Summer 2002. The Hilton Club will be managed by Hilton Grand Vacations Company, LLC (HGVC), and guest services will be provided in conjunction with the Hilton New York. Units of varying size will be available at prices ranging from $20,000 to $100,000.

"The Hilton Club clearly establishes a new level of synergy between vacation ownership and hotel lodging by enhancing existing company assets, while providing Club Members with unprecedented advantages of combined hospitality," said Antoine Dagot, president and CEO of HGVC.
    
Hilton Grand Vacations Club Resort Development Resumes

Hilton Hotels Corporation also announced plans to restart the construction of Hilton Grand Vacations Club(R) resorts in Las Vegas, Nevada and Orlando, Florida. The development of both high-quality vacation ownership resorts was launched in 2001, but construction efforts were briefly postponed in the wake of events following September 11, 2001.
    
Construction of the first phase of Hilton Grand Vacations Club on the Las Vegas Strip has resumed and is scheduled for completion in January 2004. The first of four potential phases of development will be comprised of 295 units including studio, one- and two-bedroom accommodations. The development could ultimately include a total of up to 1,523 units in four phases. Located on a 10-acre site on Las Vegas Boulevard at the north end of the Las Vegas Strip, the project is HGVC's third property in Las Vegas, along with projects at the Las Vegas Hilton and Flamingo hotels.
    
Construction of the first two phases of Hilton Grand Vacations Club on International Drive in Orlando, Florida will resume in September 2002, with completion slated for February 2004. The first two of five potential development phases will include a combined 96 units including studio, one-, two- and three-bedroom accommodations. This project could ultimately include a total of up to 384 units in five phases. Situated on 34 acres at the southwest intersection of International Drive and Vineland Avenue, the new HGVClub(R) resort is within minutes of Walt Disney World(TM)(R), adjacent to the Orlando Premium Outlets, and will be HGVC's second property in Orlando, along with the existing HGVC property at Sea World(R).
    
According to HGVC president and CEO, Antoine Dagot, "We are extremely pleased that our parent company, Hilton Hotels Corporation, has prioritized the development of these two spectacular resort properties. In today's world, consumers are considering their travel options very thoughtfully. Always presented as an excellent framework for spending time with family members, vacation ownership is enjoying renewed popularity. Based upon the strength of our brand, and the quality of our product, we are very optimistic that the membership sales of these new projects will be successful."
    
Both properties will feature a complete array of resort amenities, including a fitness center, sports court and elaborate water-related design elements, ranging from fountains and swimming pools to whirlpool spas and an interactive children's pool. The resorts will feature one-, two- and three-bedroom accommodations, with fully equipped kitchens, washers and dryers, spacious living and dining areas and private master suites.
    
Hilton Grand Vacations Company, LLC, is wholly owned by Hilton Hotels Corporation (NYSE:HLT), recognized internationally as a preeminent hospitality company. Headquartered in Orlando, Fla., HGVC develops, markets and operates a system of brand name, high-quality vacation ownership resorts in select vacation destinations. The company also operates an innovative club membership program, Hilton Grand Vacations Club, providing exclusive exchange, leisure travel and reservation services for more than 50,000 HGVClub Members.