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Sunterra Corp reports 3rd Qtr Results

Sunterra Corporation today reported results for its third fiscal quarter ended June 30, 2005. The company`s underlying performance reflects strong demand in North America, the successful integration of recent acquisitions and improvement in North American marketing efficiencies. The results also include previously announced charges relating to its European operations.

Excluding these charges, net income for the three months ended June 30, 2005, was $5.5 million, or $0.24 per diluted share, compared with net income of $7.7 million, or $0.33 per diluted share in the third quarter a year ago. The 2004 third quarter included an additional $1.3 million of recognized gain on sales of assets. During the 2004 period, the company realized approximately $0.5 million from favorable settlements of litigation relating to a former subsidiary.

"Sunterra has continued to deliver record operating profits," said Nicholas Benson, president and chief executive officer. "While implementing a responsible streamlining in Europe, we are maintaining a corporate growth strategy which creates value for our members and shareholders."