ROYAL GARDEN RESORT PLC AND MARRIOTT INTERNATIONAL FORM JOINT VENTURE TO DEVELOP RESORT IN PHUKET, THAILAND

Royal Garden Resort Plc and Marriott International, Inc. (NYSE:MAR) have formed a joint venture to develop an integrated beachfront resort in Phuket, Thailand, one of the world’s most popular resort destinations. The project will include the 265-room JW Marriott Resort Phuket and the 144-villa Marriott Vacation Club International vacation ownership community.

Construction of the hotel and the first phase (60 villas) of the vacation ownership community began in March of this year. Opening is scheduled for December 2001.

“We are truly excited to add Phuket to our portfolio of world-class resort destinations,” said Ed Fuller, president and managing director for international lodging at Marriott International. “With our hotels in Bangkok, we will now be able to offer our guests a choice of Thai travel experiences. Also, we are very pleased to have the opportunity to expand our relationship with Royal Garden Resort. We have been working together for six years now, since the opening of the Marriott Royal Garden Riverside Hotel Bangkok.”

Bill Heinecke, chief executive officer of Royal Garden Resort Plc, said, “The economic crisis and the subsequent slowdown of the Thai economy has brought five-star hotel development virtually to a standstill. We are pleased that Marriott has shown the confidence to go forward with this unique development with Royal Garden Resort. This development will bring both Royal Garden Resort and Marriott their first presence in Phuket – Thailand’s premier resort destination. This will have a positive impact on tourism in general for Thailand and most specifically for Phuket.”

The resort is located on Mai Khao beach, approximately 15 kilometers north of the Phuket International Airport. It has been carefully designed around the site’s existing vegetation. Existing trees will remain untouched, and the project’s gardens will feature lush vegetation, palm trees and wetlands. Within the gardens will be three unique resort-style swimming pools, all of which will face the Andaman Sea.

Consistent with southern Thai architecture, the JW Marriott Resort Phuket will have a dramatic covered, open air lobby that will overlook the hotel’s elaborate water features.

Hotel guest rooms will be located in three-story, low-rise wings that surround the pool areas. All standard guest rooms will be 47 square meters and will feature an indoor living area and a bathroom with separate shower stall and bathtub.

All of the vacation ownership villas will have two bedrooms and will feature a living room, a full kitchen and a master bathroom with an oversized tub.

For entertainment and dining, the JW Marriott Resort Phuket will offer six restaurants and lounges: a casual restaurant with a grand buffet, an Italian restaurant, a poolside restaurant, a retail deli, a lobby lounge with a sushi bar and a poolside bar. The casual and Italian restaurants will have a mix of air-conditioned and outdoor seating and will afford guests with a spectacular view of the sea.

The hotel will have 954 square meters of flexible meeting space, including a 600-square-meter ballroom that will be divisible into five sections, two meeting rooms and a boardroom. A covered open-air catering area for groups of up to 300 persons will also be provided.

Recreational amenities will include a Tropical Spa, which will offer a comprehensive range of wellness programs, traditional Thai herbal treatments and massage, as well as a complete selection of international treatments. A large health and fitness center will also be provided with a complete selection of weight training and aerobic machines. Additionally, the resort will offer three lighted tennis courts and a recreation pavilion offering billiards, board games and a library.

Other amenities include a Children’s Activity Center with indoor and outdoor recreation areas, retail shops, a business center, a concierge desk, tour planning desk and laundry/valet service.

The Marriott International lodging portfolio in Thailand includes the 425-room JW Marriott Hotel Bangkok, the 417-room Marriott Royal Garden Riverside Hotel Bangkok and the 254-room Ramada Tawana Hotel Bangkok. Plans for The Mayfair, a 162-unit Marriott Executive Apartments property for business executives traveling on overseas assignments of 30 days or more, were recently announced; it is scheduled to open in 2002.