Sunterra has also appointed Miller to its Board of Directors and to the Executive Committee of the Board. The company has named Andrew Jody Gessow and Steven C. Kenninger, currently Sunterra's Chief Executive Officer and President, respectively, as Co-Chairmen of the Board. Osamu "Sam" Kaneko, currently Sunterra's Chairman, will become a member of the Board's Executive Committee.

"Through an aggressive acquisition strategy, we have built the world's largest vacation ownership company with 85 resorts and 5,400 employees in 10 countries, and more than 210,000 owner families," said Gessow. "Now, as we roll out and implement Club Sunterra, our new international points-based vacation ownership and reservations club, we are delighted to have the industry's top executive leading the charge. Steve Miller's hands-on experience in the vacation ownership and services industry will substantially enhance our ongoing success."

"I am very excited to be joining forces with an outstanding operating team to advance Sunterra's winning strategy," said Mr. Miller. "This is a company with remarkable opportunity. It is uniquely positioned with a high quality, worldwide portfolio of vacation destination resorts and an infrastructure to support management's creative vision for a next generation vacation membership club. The vacation ownership industry is still in its infancy, and the points-based club model is the best approach to capitalize on the immense opportunity available today. I have been privileged to have been a part of the industry's growth since 1991. It feels great to be with the best team to lead the industry into the next century."

Miller, 49, joined RCI in 1991 as Senior Vice President and Chief Financial Officer. He has served as Chief Executive Officer since January 1997. Miller serves on the World Travel and Tourism Council and is a director of the American Resort Development Association (ARDA). In April 1998, Miller received ARDA's highest honor, the ARDA Leader of the Year award for his contributions to the vacation ownership industry. Before joining RCI, Miller was a partner with Ernst Young. Miller received a bachelor of science degree in business management, a Juris Doctorate, and an MBA, all from Indiana University. Kenninger added, "Steve Miller is responsible for many of the positive changes across our industry in the last decade. We look forward to his strategic vision and experienced leadership in guiding our management team."

Management and Operating Teams to Consolidate in Orlando

Sunterra also announced it will consolidate all corporate functions from its San Mateo, Calif., and Chicago, Ill., offices into its Orlando, Fla., headquarters by mid-1999. "Steve Miller and the rest of our operating team will be based in Orlando, and we feel it is important to bring all of our corporate functions under one roof. This move is designed to provide cost savings and operating efficiencies," said Mr. Gessow. "Due to family considerations, our Chief Financial Officer, Mike Depatie, and our Treasurer, Dewey Chambers, will not be moving from the San Francisco Bay Area to Orlando. Mike and Dewey will direct the search for their replacements and will remain with the company through this transition period."

About Sunterra Corporation

Sunterra Corporation is the world's largest vacation ownership company, with 85 resort locations around the world and more than 210,000 owner families.  Through its Marc Hotels  Resorts subsidiary, Sunterra manages units at an additional 22 resorts in Hawaii.

This release contains forward-looking statements, which include Sunterra's expansion plans, future prospects and other forecasts and statements of expectations. Actual results might differ materially from those expressed in any forward looking statements made by Sunterra due to, among other things, factors related to the timing and terms of future acquisitions and new product introduction, mortgages receivable financing, integration of acquired operating companies and resort properties and those factors identified in Sunterra's filings with the Securities and Exchange Commission, including those set forth in Items 1 and 2 of Sunterra's Annual Report on Form 10-K for the year ended December 31, 1997.