The acquisition is accretive to ResortQuest's earnings and enhances the company's summer operations. Eighty percent of the purchase price will be paid in cash and 20 percent in shares of ResortQuest common stock. The acquisition is expected to be finalized within 30 days.

The addition of Abbott Resorts' 2,400 condominium and home rentals on the Florida Gulf Coast represents a 22 percent increase in ResortQuest's current property management and rental portfolio of nearly 11,000 vacation properties.

Revenues for the privately held management company for the 12 months ended July 31, 1998 totaled $28.8 million. ResortQuest's pro forma revenue for the 12 months ended June 30, 1998 totaled $60.7 million. Upon closing of the transaction, William W. Abbott, Jr., vice chairman of Abbott Resorts, will join ResortQuest's board of directors. James S. Olin will remain on Abbott Resorts' senior management team as president of the new ResortQuest subsidiary.

Abbott Resorts is the largest resort property management company in Florida and one of the largest in the industry, with rental properties located in Ft. Walton Beach, Destin and the beaches of South Walton, an area that attracts more than four million vacationers annually. In addition to managing vacation condominiums and homes, Abbott Resorts operates Tops'l Beach  Racquet Resort, a 55-acre tennis complex rated among the Top 50 in the U.S. by Tennis magazine. Abbott Resorts' management portfolio also includes the only Gulf-front bed and breakfast in the area. In addition, the company has the largest vacation home and condominium real estate sales organization in the Emerald Coast area, with sales exceeding $274 million for the 12 months ended July 31, 1998.

"The Abbott Resorts acquisition marks our entry into the increasingly popular Destin area, which is a key strategic market for ResortQuest," said David Sullivan, chairman and chief executive officer of ResortQuest. "This is our fourth acquisition since our IPO in May and we plan to continue our aggressive growth strategy."

"The addition of Abbott Resorts brings our total portfolio to more than 13,000 properties and is a key marketing advantage for ResortQuest," said David L. Levine, ResortQuest president and chief operating officer. "The Destin and South Walton area is a prime resort market and continues to attract an increasing number of vacationers year over year. Abbott Resorts is one of the most respected names in the industry. Their management team is among the strongest in the Florida market and will add further depth to ResortQuest's management ranks."

"Strategically, our decision to join ResortQuest was an easy one because of the benefits it will provide to our employees, owners and guests," said William W. Abbott, Jr., Abbott Resorts' vice chairman. "Through ResortQuest, we will be able to extend our leadership position by taking advantage of the brand's resources, marketing muscle and technology."

ResortQuest was formed in May through the acquisition of 13 founding companies, creating the first national brand in the vacation rental and property management industry. The company provides the first one-stop resource for renting vacation homes and condominiums in premier resort destinations. ResortQuest's current locations include Gulf Shores, Ala.; Aspen, Breckenridge and Telluride, Colo.; Bethany Beach, Del.; Captiva Island and Sanibel Island, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; the Outer Banks of North Carolina; Park City, Utah; and Whistler, British Columbia.

ResortQuest has approximately 1,300 employees and maintains corporate offices in Memphis, Tenn. The company's website address is www.resortquest.com.

The matters in this press release include "forward looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in ResortQuest International's filings with the Securities and Exchange Commission.