Powhatan Plantation Turnover to Homeowners

June 1, 2004. Sunterra Corporation.has agreed, on May 15, 2004, to finally begin the turnover of Powhatan Plantation, Virginia to the owners. This follows thousands of complaints from owners dissatisfied with poor maintenance of the property by their subsidiary, RPM Management. The current three members of the official PP board (local employees) will be replaced by Tom Sheets and Laurie Radney, president and regional rep for RPM Management (the wholly owned subsidiary of Sunterra), and finally, an owner. Resumes for the position are being accepted by Tom Sheets at Sunterra Corp. in Las Vegas, NV. The appointment is expected by early summer, 2004. The total turnover of the site to the owners requires that 90% of the planned units must be built and sold and permitted under state code.

They have an option to transfer control before then but refuse to do so. They will begin construction of additional units in fall, 2004 to bring the units, when sold, to the 90th% required for turnover. (Such may take several years.) In 2005 they anticipate building the remainder of the property out to the 500 units authorized in the in master plan.