OUTRIGGER SAILS INTO NEW CALEDONIA

HONOLULU, Oahu, Hawaii -- Outrigger Hotels & Resorts has added the

prestigious Kuendu Beach Resort in New Caledonia to its portfolio of resorts

in the Australia-South Pacific region. The appointment to manage the

oceanfront resort, which is located just north of Noumea, the capital,

brings the total number of Outrigger hotels and resort condominiums to 37

(both those operating and those under development), representing nearly

12,000 rooms and apartments in Hawaii, Micronesia, Australia and the South

Pacific.

Outrigger's appointment to manage Kuendu Beach Resort coincided with the

announcement of a two-year, $7.8 million redevelopment of the property,

which began in January with demolition of some of the older structures on

the site. The resort will continue to operate fully throughout the

redevelopment, and it will assume the Outrigger name upon completion.

Outrigger Hotels & Resorts' Australian division, Outrigger Australia, will

oversee the management of the resort throughout the redevelopment period.

"The redevelopment of Kuendu Beach Resort provides the perfect opportunity

to integrate the Outrigger service philosophy with the existing property,"

said Perry Sorenson, Chief Operating for Outrigger Hotels & Resorts. "The

goal is to provide visitors with an authentic island experience, both

through involvement with the community and the accurate presentation of the

culture of a place."

Owner-developer Henri Morini indicated that Outrigger Hotels & Resorts was

selected to manage the redeveloped hotel as a result of the company's 54

years of experience in successfully designing, operating, and marketing

resort properties in the Pacific region, and more recently in Australia, one

of New Caledonia's major sources of visitors.

"We are excited about this opportunity, which we view as strategic in terms

of our ongoing efforts to strengthen Outrigger's position in the Australian

and near-Australian tourism markets, and to be part of what will ultimately

be one of New Caledonia's most significant tourist destinations," said Dave

Lawrence, Vice President and General Director of Outrigger Australia.

Kuendu Beach Resort currently comprises 26 luxury bungalows, including six

over-water units, along with restaurants and conference facilities. On

completion of the redevelopment, the resort will boast 20 additional

over-water bungalows, as well as new restaurants, a reception area and

conference center. New recreation facilities will include two swimming

pools, waterslides, and a protected area in Kuendu Bay. Other exciting

additions will include a large aquarium, a turtle hatchery and sanctuary, a

boat wharf and a wedding chapel.

Bill Henderson, Vice President of Business Development at Outrigger's

corporate offices in Honolulu added, "Our success in operating upscale

beachfront properties in Queensland, one of Australia's major resort

destinations, has served as a catalyst for further development in Australia

and the region, and we expect to announce additional Outrigger resort

projects in Queensland soon."

Henderson indicated that in addition to management of properties in key

tourist centers, Outrigger's long-term strategy for Australia includes

operation of full-service hotels in gateway cities such as Brisbane, Sydney,

Melbourne and Perth. At the same time, the company places considerable

strategic importance on continued efforts to seek appropriate opportunities

in New Zealand.

Outrigger Hotels & Resorts is division of Outrigger Enterprises, Inc., the

largest locally owned lodging company in Hawaii and one of the fastest

growing lodging companies in the Pacific. Under its two hotel brands -

Outrigger Hotels & Resorts and OHANA Hotels of Hawaii - the company

currently operates or has under development 37 hotels and resorts throughout

the Pacific region, representing nearly 12,000 hotel rooms and condominium

units in Hawaii, Micronesia, Australia and the South Pacific. Outrigger's

affiliate, Outrigger Lodging Services, operates nearly two dozen hotels and

resorts throughout the U.S. Mainland.

For reservations or information, call your preferred travel professional or

Outrigger Hotels and Resorts toll-free at 800-OUTRIGGER (1-800-688-7444)

within the U.S., Guam and Canada. Outrigger's toll-free number is available

internationally via AT&T's new direct 800Ó Service. Elsewhere call

303-369-7777. Internet users can access information on Outrigger via the

World Wide Web and www.outrigger.com and Outrigger's e-mail address is

reservations@outrigger.com