SOURCE: Sunterra Corporation

July 25, 2005 09:29 ET

Sunterra Corporation Acquires Maltese Island Destination

LAS VEGAS, NV -- (MARKET WIRE) -- July 25, 2005 -- Sunterra Corporation (NASDAQ: SNRR) ("Sunterra" or the "Company") announced today that it has closed agreements with the Eden Leisure Group to acquire the Eden Bay Resort in Malta. This strategic acquisition will add a further year round Mediterranean destination to Sunterra's portfolio of resorts. Consisting of 46 one and two bedroom apartments, the resort will start accepting Club Sunterra members from July 30th, 2005.

"The Maltese Islands are a popular choice for holidaymakers from the UK," commented Nick Benson, Sunterra's President and CEO. "We are sure that our members will embrace this new vacation experience and enjoy the rich history, culinary delights and culture as well as the seafront location of the resort. We are pleased to be replacing inventory that we have sold through in the past year with an attractive new destination at a reasonable cost."

The five-star resort is within the InterContinental Hotel Malta, giving Club Sunterra guests access to an array of luxury amenities, including a panoramic pool that overlooks St. George's Bay; one of the largest fitness centers in the area with an aerobics studio, indoor pool, climbing wall and squash courts; a beauty spa with saunas and steam room; and a number of high quality dining establishments offering a variety of cuisines. This coastal area is home to several of the island's newest hotels and entertainment complexes, as well as historical attractions and the capital city of Valletta, which is famous for its magnificent baroque architecture.

ABOUT SUNTERRA

Sunterra is one of the world's largest vacation ownership companies with more than 300,000 owner member 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.

Statements about booking availability made in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. The Company cautions that these statements are not guarantees of future performance, and involve risks, uncertainties, and other factors that may cause results to differ materially from those anticipated at the time such statements are made, including risks associated with making financial forecasts and estimates. Many of these risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission, including our most recent report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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