American Golf Corporation Acquires Cobblestone Golf Properties From Meditrust.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Feb. 11, 1999--American Golf Corporation Thursday announced that it has joined with ClubCorp Inc. to form Golf Acquisitions, LLC for the purpose of acquiring the Cobblestone Golf Group from The Meditrust Companies for approximately $393 million.

Subject to customary conditions, the transaction is expected to close on or before March 31, 1999.

Upon the closing of the transaction, American Golf and ClubCorp will divide the Cobblestone portfolio of 45 premier properties with American Golf allocated 23 owned and leased golf courses. American Golf is negotiating to transfer substantially all of these courses to its publicly traded affiliate, National Golf Properties Inc. (NYSE:TEE).

"We are delighted to have joined forces with ClubCorp to acquire this portfolio of distinctive properties and to work with Cobblestone's co-workers, members and guests to continue providing the highest quality golf experience," stated David G. Price, chairman of American Golf.

"This acquisition, the largest in the history of the golf course industry, is a testament to the unparalleled acquisition experience and operating expertise presented by the combined efforts of American Golf, National Golf and ClubCorp."

The 23 golf courses allocated to American Golf include eight courses in Texas, six courses in California, four courses in Arizona, three courses in Virginia and two courses in Georgia.

American Golf, the largest operator of golf facilities in the world, operates more than 290 private, resort and daily fee golf courses and practice centers in the United States and the United Kingdom.

National Golf Properties is the largest publicly traded company in the United States specializing in the acquisition and ownership of golf course facilities. National Golf Properties' portfolio consists of 133 golf courses geographically diversified among 26 states.