LAS VEGAS, NV -- (MARKET WIRE) -- 03/09/07 -- Sunterra Corporation (PINKSHEETS: SNRR) today
acknowledged, in response to a story issued by The Wall Street Journal, it
is in discussions with Las Vegas-based Diamond Resorts, LLC regarding the
possible acquisition of Sunterra, however, the company said it has not
signed an agreement.
There can be no assurance that any transaction will occur or, if
undertaken, the terms or timing of such a transaction.
Sunterra said it will make no further comments at this time.
About Sunterra
Sunterra is one of the world's largest vacation ownership companies with
more than 324,000 owner families and nearly 100 branded or affiliated
vacation ownership resorts throughout the continental United States and
Hawaii, Canada, Europe, the Caribbean and Mexico. Sunterra news releases,
as well as additional news and information on the company, can be found at
www.sunterra.com.
Forward-Looking Statements; Risks and Uncertainties
Statements contained in this document that disclose the Company's or
management's intentions, expectations or predictions of the future are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company cautions that these statements involve
risks and uncertainties and other factors that may cause results to differ
materially from those anticipated at the time such statements are made. For
example, future results, performance and achievements may be affected by
our ability to successfully implement our strategic, operational and
marketing plan including the cost reduction plan of our European operation,
the actual amount of the pretax restructuring charge, the actual amount of
the cash expenditures associated with the restructuring plan, general
economic conditions, including a global economic downturn, the impact of
war and terrorist activity, business and financing conditions, foreign
exchange fluctuations, governmental and regulatory actions, the cyclicality
of the vacation ownership industry, relationships with key employees,
domestic and international political and geopolitical conditions,
competition, downturns in leisure travel patterns, risk associated with the
level and structure of our indebtedness, risk associated with potential
acquisitions and dispositions and other circumstances and uncertainties. In
addition, potential risks and uncertainties include, among other things:
(1) the results of the Audit and Compliance Committee investigation; (2)
expectations as to the timing of the completion of such investigation by
the Committee and its independent counsel and any remedial actions
recommended by the Committee, the Company's review, restatement and filing
of its previously issued financial statements and its assessment of the
effectiveness of disclosure controls and procedures and internal control
over financial reporting, the review and filing of the Company's Form 10-Q
for the fiscal quarters ended March 31, 2006, June 30, 2006 and December
31, 2006, and its Form 10-K for the fiscal year ended September 30, 2006,
and the issuance of interim financial results for the Company; (3)
expectations as to the timing of the completion of a re-audit by the new
independent registered public accounting firm; (4) the effects of the
delisting of the Company's common stock from The Nasdaq National Market and
removal of the Company's warrants from the OTC Bulletin Board and the
quotation of the Company's common stock and warrants in the "Pink Sheets,"
including any adverse effects relating to the trading of the stock or
warrants due to, among other things, the absence of market makers; (5) the
effects of any required restatement adjustments to previously issued
financial statements and material weaknesses in internal control over
financial reporting; (6) the effects of any filed or future class action
and derivative or other lawsuits or governmental investigations alleging
among other things, violations of federal securities laws, by the Company
or any of its directors or executive officers; (7) the outcome of any legal
or administrative proceedings, including the institution of administrative,
civil injunctive or criminal proceedings involving the Company as well as
current or former employees of the Company, and the imposition of fines and
other penalties, remedies or sanctions arising out of such proceedings
(including any domestic or foreign investigations or inquiries); (8)
potential costs resulting from indemnity obligations of the Company to its
officers and directors named in any lawsuits or governmental
investigations; (9) the possibility that any default under the Company's
financing arrangements, including our Senior Finance Facility, could cause
acceleration of repayment of the entire principal amounts and accrued
interest on such arrangements; (10) the effects of new accounting
pronouncements; (11) the effects personnel changes may have on the
Company's business; (12) the undertaking of any transaction or transactions
resulting from its Board of Directors' decision to sell Sunterra Europe and
its consideration of strategic alternatives with respect to Sunterra, and
there can be no assurance that any transaction or transactions will occur
or, if undertaken, the terms or timing of such a transaction or
transactions; (13) the potential reclassification by any taxing authority
of the Company's independent sales agents as employees, rather than
independent contractors, and the decision of such taxing authorities to
hold the Company liable for back payroll taxes, which could have a material
adverse effect on the Company; and (14) additional risks and uncertainties
and important factors described in the Company's other press releases and
in the Company's filings with the Securities and Exchange Commission,
including our most recent annual report on Form 10-K and quarterly report
on Form 10-Q. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can
give no assurance that our expectations will be attained or that results
will not materially differ. We undertake no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as may be required by law.
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