By the Order and Final Judgment dated April 26, 2005, U.S. District Judge John Antoon II certifies the class and approves the settlement.

According to a press release dated March 1, 2005, a Preliminary Approval of the securities class action settlement in In re Sunterra Corporation Securities Litigation was announced. The hearing, scheduled on April 26, 2005, is to determine (1) the proposed settlement (the "Settlement") of the above-entitled class action for $4,450,000, in cash plus accrued interest (the "Settlement Amount") should be approved by the Court as fair, reasonable, and adequate; (2) the application of Plaintiffs' Lead Counsel for an award of attorneys' fees and reimbursement of expenses should be approved; and (3) the Action should be dismissed with prejudice.

On June 6, 2002, Sunterra Corp. filed a Suggestion of Bankruptcy, and on July 15, 2000, U.S. District Judge John Antoon II ordered that the consolidated cases are stayed as to defendant Sunterra Corporation, until further order of the Court. Defendant Sunterra shall file a status report within (30) days from the date of this Order and every (90) days thereafter until this matter has been resolved in bankruptcy court.

The original Complaint alleges that Sunterra and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of l934 and Rule 10b-5 promulgated thereunder by, among other things, misrepresenting and/or omitting material information from press releases and SEC filings. On January 20, 2000, the company revealed that its fourth quarter results would be between $.01 to $.08 per share, compared with $.31 per share for the prior year, and that the company planned to take a $38 to $45 million charge in order to write-off delinquent receivables improperly left on its books.