August 20, 2008

Welcome to Exclusive Living! We recently unveiled a new look and feel for the newsletter, in an electronic format designed to provide you with more timely and consistent club news each month.

In this edition, I'd like to take a moment to address the challenging economic climate and questions you may have about its impacts on the club.

I'm pleased and proud to be able to let you know that Exclusive Resorts has never been stronger as an organization. We've told you for many years that our size and strength were an advantage to you as members, and that has become even more apparent in a challenging economy.

As you may have found in your own business, along with challenges come some significant opportunities, and the economic scenario has provided Exclusive Resorts with some very attractive conditions. Club members are seeing the rewards of those conditions in the deals we've been putting together over the past year. In particular, the softening luxury real estate market has put us in an excellent negotiating position with real estate partners, helping us to secure favorable terms and pricing.

As the market leader, we are committed to always providing you with the highest level of service and memorable experiences for you to share with friends and family—your loyalty and satisfaction is very important to us. Part of that commitment includes opening new residences in your favorite destinations, while continuing to research and evaluate future development opportunities.

We plan to introduce some great new residences later this year. In this issue, you'll read about our move to acquire 8 villas built by Miraval Resort & Spa, and the expected release of 12 residences in Ho'olei in Wailea, Maui. And in late August, we plan to release 12 new residences at Fairmont Heritage Place, Ghirardelli Square in San Francisco, which is a destination that I think you'll find very impressive.

On behalf of Exclusive Resorts, I'd like to thank you for your ongoing commitment to the club.

All the best,

Jeff Potter