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Fairfield Communities and Harrah's Entertainment Expand Marketing Alliance

``We have seen the positive impact that Fairfield has had on our Las Vegas operation,'' said Phil Satre, Chairman and Chief Executive Officer of Harrah's Entertainment. ``Fairfield has demonstrated its leadership in today's growing vacation ownership market, and we are pleased to have them as a marketing partner in additional Harrah's markets.''

``This alliance will enable both companies to target similar customer bases with more robust and compelling marketing offers, and should allow each to acquire new customers at a lower cost,'' he said.

NEW SALES CENTERS

Under the new agreement, Fairfield will build and operate sales centers inside Harrah's casinos in Las Vegas, Laughlin and Reno. The new sales centers are expected to open by January 2001. The Las Vegas sales center will utilize 12,000 square feet of space located on the second floor of Harrah's Las Vegas. The Las Vegas sales center, featuring a full-sized model unit, will support sales of Fairfield's flagship western resort in Las Vegas, the 416-unit Fairfield Grand Desert scheduled to open July 2001.

``We are extremely excited about this expansion of our partnership,'' said James Berk, Fairfield Communities President and CEO. ``This past year we have been expanding our relationship with Harrah's and this new agreement allows us to establish a network of sales centers that should be able to generate the increased sales volume required to grow Las Vegas into a mega-resort.''

Last fall, Fairfield announced its first marketing alliance with Harrah's. Under that agreement, Fairfield operates three reception centers within Harrah's Las Vegas and markets co-branded travel packages featuring accommodations at the 2,700-room hotel in the heart of the Las Vegas strip.

``We will soon provide a fully integrated marketing strategy,'' added Berk. ``We will expand our marketing of Harrah's travel packages which provide our guests with accommodations at Harrah's Las Vegas, arrange their entertainment at a Harrah's show, and give them a preview of our new Grand Desert property without ever having to leave the hotel.''

The new agreement includes reception centers in Harrah's Las Vegas' sister property, the upscale Rio Suite Hotel & Casino. Fairfield is currently generating guests from these Rio locations and acquires Rio casino chips and show tickets for promotions. Co-branded travel packages will also be marketed to guests who prefer suite-style accommodations.

When the new sales center opens in Harrah's Las Vegas, Rio prospects will be able to take advantage of the complimentary shuttle currently operating between the two properties.

INTEGRATED MARKETING PROGRAMS

The two companies also plan a series of promotions that tap into each other's customer base. Members of Harrah's Total Rewards customer-loyalty program, which features the gaming industry's only nationwide player card, may receive exclusive offers for Fairfield travel packages.

Fairfield owners may be able to exchange their vacation ownership points for stays at many Harrah's properties. The companies plan to create air-inclusive travel packages featuring travel aboard National Airlines. Harrah's Entertainment owns a 48 percent stake in the Las Vegas-based carrier.

Fairfield Communities, with more than 324,000 vacation-owning households, is the largest vacation ownership company in the United States, marketing and managing resort properties at 33 locations in 12 states and the Bahamas. This year over 625,000 families will visit Fairfield resorts. Fairfield operates over 32 dedicated sales centers and manages over 110 timeshare and whole ownership resort associations.

Harrah's Entertainment, Inc. is the most recognized and respected name in the casino entertainment industry, operating 21 casinos in the United States under the Harrah's, Rio, Showboat and Players brand names. Founded more than 60 years ago, Harrah's is focused on building loyalty and value with its targeted customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

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