Important Update Affecting Resale Purchasers

We recently received this letter from Rosemary Steinback from SVO Management, Inc., providing important updates that affect resale purchasers:

Dear <RedWeek Management>:

This letter is being sent to your company as a courtesy so that you may provide the most accurate information to prospective purchasers of resale Unit Weeks at Sheraton Vistana Resort in Orlando in the Courts, Falls, Spa, Palms, Springs, Fountains, and Fountains II phases and at Vistana's Beach Club in Jensen Beach, Florida.

Beginning in November 2006 and in process until 2012, each of the Condominium Associations for these phases/resorts noted above has completed, scheduled, or has in progress, a multi-million dollar refurbishment of unit interiors. At the completion of these renovations, each Association have completed or will have the opportunity to consider an affiliation with Starwood Vacation Network (SVN).

Owners who purchased a vacation ownership interest at Vistana's Beach Club and in the Courts, Falls, Spa, Palms, Springs, Fountains and Fountains II phases at Sheraton Vistana Resort from an independent resale company on or before December 31, 2007 may receive an invitation to enroll that interest into SVN. Vacation Ownership Interests purchased in these specific phases at Sheraton Vistana Resort and at Vistana's Beach Club from an independent resale source on or after January 1, 2008 are not eligible to be enrolled in SVN.

There are no changes to the current SVN membership qualifications for Vistana Lakes Condominium Association and Vistana Cascades Condominium Association, which have also committed to refurbishments. These interests are only eligible to receive SVN benefits when vacation ownership interests have been purchased from the Developer.

Our goal is that all purchasers of any Starwood Vacation Ownership product from any source be fully informed of the features of their ownership so they can enjoy the benefits of ownership with the right expectation.

SVO Management, Inc.

Rosemary K. Steinback Director, Exchange Company Services/ Inventory Planning & Operations

So am i to understand that this property in Jensen beach, will not ever have any connection to starwood vacation club? Will it be a starwood (Sheraton) property? or is it going to be managed under a different company and if so which one? thank you