September 1, 2010

When Escapes! developed the Galveston property, the original intent was to sell all inventory. The total unit quantity at this resort is seventy-eight (78), with thirty-two (32) of these units having no timeshare sales. The remaining forty-six (46) units are registered for the sale of timeshare and weeks/points have been sold in all forty-six (46) units. The number of timeshare weeks sold varies by unit and those remaining are identified as Developer unsold inventory.

In late Summer/early Fall of 2008, Escapes! ceased all marketing and sales efforts due to the swiftly changing economic conditions. This cessation of marketing and sales efforts occurred at all of our resorts/sales centers. As a subsidiary of Cooper Communities, Inc., a fifty-six year old independent real estate developer of planned communities, Escapes! took the extremely conservative position of its parent company’s history during economic declines. In previous years when the economy was flourishing, Escapes! took a very aggressive approach to the marketing and selling of vacation ownership, as exhibited by the parent company, Cooper Communities, Inc.

With the cessation of vacation ownership marketing and sales efforts, Escapes! focused on the rental of unsold developer inventory. Very little marketing dollars were spent on the rental business and agreements with third party rental companies, .com companies, etc. were developed. This approach proved to be advantageous and affordable for Escapes! However, Escapes! has now made the decision to sell some of the units, which are unbroken, as whole ownership. Some purchasers will choose to live onsite or use the unit for vacation purposes for family members and friends. Many purchasers will most likely decide to place their unit on a rental program through a property management company.

On October 2, 2010, Escapes! to the Gulf at Galveston will be offering at public auction no less than fifteen (15) and no more than thirty-one (31) condominiums within the resort development. Escapes! has retained the services of J. P. King Auction Company, one of the oldest and largest real estate auction firms in the nation, to handle the marketing and sales efforts for us. Prior to this event, J. P. King Auction Company will begin its marketing campaign to successfully advertise the auction. This marketing plan will consist of brochures, newspaper ads, magazines ads, and signs.

The sale of whole ownership units will have no impact on the availability of inventory for Escapes Travel Choices owners. When an ETC owner calls Member Services and inquires about availability, they view a matrix providing information on that specific ETC pool of inventory and then make the determination as to whether or not a reservation can be confirmed, utilizing the reservation windows attached to the ETC rules and regulations. The rental pool of inventory in Galveston will certainly diminish as a result of sold whole ownership units at the auction, but this will not affect the availability of the ETC pool of inventory. Regarding exchange inventory through Interval International, this reservation type availability is based upon the number of owners space banking their week and therefore, the sale of condominiums as whole ownership will not affect the availability of the exchange pool of inventory.

At our two resorts in Orange Beach, Alabama, we have both vacation ownership inventory and whole ownership units. At Palm Beach Condominiums, whole ownership existed prior to Escapes! purchasing units to be registered for the sale of vacation ownership. At the Shores Condominiums, vacation ownership was introduced first and then whole ownership sales occurred as the result of an auction in late July of 2009. Please be assured that the access and atmosphere of the condominiums will not change, nor will the attitude of the staff. We did not experience this in Orange Beach, Alabama and therefore, we do not expect this to occur in Galveston.

For more information about the upcoming auction, click here.