SOURCE: Sunterra Corporation

February 10, 2006 20:19 ET

Sunterra Corporation Issues Amplification

LAS VEGAS, NV -- (MARKET WIRE) -- February 10, 2006 -- Sunterra Corporation (NASDAQ: SNRR) announced an amplification of the reason for the postponement of its results for the fiscal first quarter ended December 31, 2005.

The postponement relates to the recent adoption of Statements of Financial Accounting Standards (SFAS) No. 152, Accounting for Real Estate Time-Sharing Transactions, which is effective for financial statements for fiscal years beginning after June 15, 2005. The company is the first public company to adopt and report under this new pronouncement.

In particular, the company is working diligently to reach a definitive view on the treatment of certain incremental revenues associated with holding developer inventory. Under one interpretation of SFAS No. 152 these can be applied as a period cost, offsetting the carrying costs of that inventory. An alternative interpretation is that they can be applied against the carrying value of that inventory.

About Sunterra

Sunterra is one of the world's largest vacation ownership companies with more than 317,000 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.

Statements about future results and plans 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 and uncertainties and other factors that may cause results to differ materially from those anticipated at the time such statements are made, including the effects of new accounting pronouncements. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. 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.

Contact Information

  • CONTACT:
    Bryan Coy
    (702) 304-7005