At the same time, Haseko announced a $2 million public area renovation project at the Outrigger Kauai Beach Hotel.

Peter Herndon, Executive Vice President of Haseko said he is pleased with the agreement. "Our decision to continue our relationship with Outrigger Hotels & Resorts was not a difficult one to make," Herndon said. "Over the past five years, we have developed a good working rapport with Outrigger Hotels," he continued. "This contract and our new renovation project emphasize our continued commitment to Kauai, and especially its residents."

According to Jay Furfaro, General Manager of the Outrigger Kauai Beach Hotel, Haseko has been extremely supportive of the island through its continued investment in the hotel. "Their commitment to the Outrigger Kauai Beach has enabled us to complete substantial renovations to the hotel."

In 1994, the hotel's 15,000 square feet of function space received a facelift, Furfaro said. In 1996, Haseko spent $1.8 million dollars to refurbish all guest rooms. Later this year, additional monies will be released to upgrade the hotel's guest corridors and public areas.

Herndon added that the introduction earlier this year ot the Voyagers Club, an exclusive level of rooms and suites with private lounge and personal services, has helped to reposition the Outrigger Kauai Beach as one of Outrigger's top properties. "Along with the renovation work that has taken place thus far, the scheduled upgrading of the hotel's public areas will enhance the Outrigger Kauai Beach Hotel's ability to be competitive with other properties on the island," he said.

Public area refurbishment will focus on the entrance to the property, the hotel's lobby and restaurant, as well as the exterior gardens and lagoons. "The grounds will be relandscaped and manicured to appeal to guest expectations of Kauai as 'The Garden Island, "'Herndon said. "Visual impediments will be removed between the porte cochere through to the lobby, drawing guests into a brighter, more spacious waiting area, and directly through to the lush courtyard beyond."

The main restaurant will be refurbished to provide a comfortable ambiance for resort dining. Additional activity centers will be added to the lobby area, including exhibition space for Island crafters, a Keiki Activities Center and an Historic Reading Room where guests can peruse archival materials concerning the property and Kauai in general.

"The upgrades for the resort will be centered around a Kauai plantation theme and special emphasis will be placed on the island's unique culture and history," Herndon said. Work is expected to be completed no later than July 1,1998.

The Outrigger Kauai Beach is centrally located on 25 oceanfront acres along the island's scenic Wailua Coast. In addition to its newly renovated guest rooms, the Outrigger Kauai Beach offers 15,000 square feet of meeting space, three swimming pools with cascading waterfalls, two restaurants and Hawaiian entertainment, plus championship golf and shopping within five miles of the property.

Haseko is celebrating its 25th year of operations in Hawaii. It has developed numerous diversified projects throughout the islands, including the Outrigger Kauai Beach. Ground breaking for its newest development in the Kapolei community (also known as the Second City) on Oahu will be announced soon.

A special scholarship fund to assist graduating high school students going to college was established by the founder of Haseko over ten years ago. Scholarships have been continuously awarded to residents of Kauai on the basis of academic excellence.

Outrigger Hotels & Resorts currently operates 29 hotels and resort condominiums throughout Hawaii and Micronesia, with projects underway in Guam, Tahiti, Bora Bora and Fiji. For reservations or information on Outrigger Hotels & Resorts, call 1-800-688-7444 within the U.S. or Canada. Outrigger's toll-free number is also
available internationally via AT&T's Direct 80O© Service. Elsewhere call 303-369-7777. Internet users can access information on Outrigger via the World Wide Web at www.outrigger.com. Outrigger's e-mail address is reservations@outrigger. com.