Tuesday, July 24, 2007
FOR IMMEDIATE RELEASE

–ASHEVILLE, NC

Festiva Resorts announced today that the Festiva Development Group has closed on the acquisition of the Equivest Vacation and Travel Club Inc. (formerly Peppertree Vacation Club Inc.) and assets at resorts formerly belonging to Peppertree Resorts Ltd. and its subsidiaries.

As a result of the acquisition, Festiva Resorts will obtain approximately 7,000 resort intervals, 12 management contracts and development rights in nine different locations. Festiva will also acquire a receivables portfolio, management of the Equivest Vacation and Travel Club Inc. and certain other fixed assets. Peppertree Resorts Ltd., founded in 1977, was acquired by Equivest Financial in 1999 and in 2002 by the Cendant Corporation.

In addition to bringing greater diversification to its portfolio of resorts, this acquisition enables Festiva Resorts to further advance its position as one of the largest privately held vacation ownership sales and hospitality development companies in the country.

“This acquisition not only adds to our existing family of resorts, but it also provides an opportunity for future growth in many of these resort locations. Future development will allow Festiva an opportunity to develop more up-to-date and enhanced accommodations that can be designed to meet the increasingly sophisticated needs and requirements of today’s vacationer,” said Butch Patrick, President of Festiva Resorts.

Festiva Resorts currently has more than 24,000 unit interval owners, Cruise Club members and Festiva Adventure Club members among nine vacation ownership resorts and four cruise club destinations. The addition of 10,400 Equivest Vacation and Travel Club members and 20,780 Peppertree Resorts unit interval owners will increase Festiva Resorts’ member base to nearly 55,000.

Resorts involved in the acquisition and previously owned by Peppertree Resorts are located in Wisconsin Dells, Wis., Branson, Mo., Gatlinburg, Tenn., Myrtle Beach, S.C., and St. Augustine, Fla. Four North Carolina resort locations include Outer Banks, Atlantic Beach, Banner Elk and Maggie Valley. The properties in Wisconsin Dells, Banner Elk and Atlantic Beach also include undeveloped land.

Festiva Resorts’ Chief Executive Officer Don Clayton and President Butch Patrick previously worked for both Peppertree Resorts and Equivest Financial for more than 20 years combined and were key players in Equivest Financial’s acquisition of Peppertree Resorts. Clayton and Patrick founded Festiva Resorts in 2000 and have since built a strong executive and corporate team based in Asheville, N.C., several of whom have had previous experience with Peppertree Resorts and Equivest Financial.

“Butch and I are fortunate to have enjoyed the success we have had in these last seven years since we formed Festiva. To have the opportunity to acquire these resorts now gives us both a great deal of satisfaction. Most of these resorts were developed during our tenure at Peppertree. We have known many of the employees and senior managers for years. We feel that this acquisition is going to provide Festiva owners with many more vacation options and we feel that we are going to bring the greater benefits of Festiva to the members of the Equivest Vacation and Travel Club as well as the owners at the former Peppertree resorts,” said Clayton.

Domestic properties currently owned and managed by Festiva Resorts are located in Branson, Mo., Myrtle Beach, S.C., Charleston, S.C., Hilton Head Island, S.C., and Orlando, Fla. Festiva Resorts also manages and owns Caribbean properties in locations including Paradise Island, Bahamas, and St. Maarten, Netherland Antilles. Elite Island Yachts, a Festiva Resorts company that operates the Cruise Club, charters all-inclusive luxury catamaran yachts in four locations in the Caribbean including the British Virgin Islands, the Grenadines, St. Maarten and the Bahamas.

For more information about Festiva Resorts visit http://www.festivaresorts.com.