Chicago Developers Purchase Fisher Island; Fisher Island Homeowner John Melk Among Buyers.

MIAMI--(BUSINESS WIRE)--Aug. 3, 1998--Chicago financier John J.Melk, Chicago-based developer Daniel E.McLean, and Daniel J. Melk, announced today that they have purchased Fisher Island, one of the world's most exclusive club communities from Island Developers, a unit of MBL Life Assurance.

The deal includes more than 40 acres of undeveloped land with bay or ocean views, the right to build as many as 637 new units, 33 existing residences, boat slips and equity memberships to the Fisher Island Club. The purchase price was not disclosed.

John Melk, a Blockbuster Video co-founder, McLean, one of the larger urban real estate developers in the nation, and Florida Developer Daniel J. Melk, purchased the coveted property from MBL after the Newark-based insurance company announces its intent to sell the property due to the restructuring of its real estate portfolio.

A new company, Fisher Island Holdings, LLC, has been formed to maintain the property's world-class stature by building less units than zoning allows, and capping the non-equity memberships - thus allaying concerns of some residents who feared that a new ownership may exercise their right to build-out the entire pre-zoned additional 637 condominium residences. The island, zoned for 1,200 units, currently has 563 completed units.

"As a homeowner, I am keenly aware of the special amenities enjoyed by the residents, as well as most of their concerns. We are committed to enhancing the special character of Fisher Island. We will develop it in a sensible, business-like manner and we plan to retain its unique, secure, and exclusive world-class stature," says Melk.

McLean and the Melks have partnered on numerous development deals, which at current market value exceed $ 1 billion. They are presently building one of the largest urban developments undertaken in America - the $750 million River East project in downtown Chicago.

"We are focused on large, long-term, quality investments," adds McLean. "We are decision makers without layers of bureaucratic management, and are financially sound and capable of managing the proper completion of Fisher Island. We will do whatever it takes to maintain its image as one of the world's most secure and unique properties."

The 216-acre tropical island paradise located south of Miami Beach was the former winter residence of William and Rosamund Vanderbilt. The island was named in honor of Miami Beach pioneer Carl Fisher. Today, the Mediterranean-inspired development, centered around the Vanderbilt's former mansion, is recognized as much for its 1920's era cottages and ferries as it is for its famous residents.

(SEE FACT SHEET AND HISTORY OF FISHER ISLAND)

Fisher Island Facts

- Island is 216 acres - Development on the island began 11 years ago - More than 500 families live on Fisher Island - 20% of our residents live here year-round - Residents are from more than 40 different countries - Approximately 560 residences have been constructed - Approximately 1000 residences are planned for the island - More than 50 floor plans are available - Real Estate prices range from $600,000 to $6.4 million - Square footage ranges from 2,000 to 8,200 - The Vanderbilt Mansion was built in 1926 - Carl Fisher traded Fisher Island to William Vanderbilt in

exchange for a 220 foot yacht named the "Eagle" in 1925 - Developer is Fisher Island Holdings, LLC. - There are 50 full time security officers on Fisher Island - Metro-Dade Fire Rescue is located on Fisher Island - A fleet of three car-ferry boats services the island 24 hours

a day - Ferry ride is 7 minutes and leaves every 15 minutes - The Inn at Fisher Island has approximately 55 hotel rooms - 18 tennis courts (2 grass, 2 hard, and 14 clay) are lighted

until midnight - Golf Course is 3400 yards long, 9 holes, and 35 par - There are over 100 boat slips and docks in our two marina

facilities - The marina can accommodate yachts more than 200 feet long - The Spa Internazionale is rated as one of the top in the U.S. - Five restaurants on the island - 450 employees serving 500 families - Island is 12 miles and about 15 minutes from the airport

HISTORY

"No Man is an Island"

This saying has apparently held no meaning in the case of Fisher Island. A string of island-lovers has made Fisher Island's history a rich one, indeed, one that dates back to before there was an island.

Around the turn of the century, the popularity of South Florida was growing and so was the size and number of private yachts and trading vessels coming into the area. To accommodate the "traffic," a passageway was dredged through Miami Beach from the Atlantic Ocean to Biscayne Bay in 1905. This passageway, named Government Cut, created this 216-acre island.

One of the first to envision that the island was something special was Dana Dorsey, Miami's first black millionaire, who purchased it in 1918. But the dream of creating a island paradise didn't take hold until Carl Fisher, notable Miami Beach develope add became infatuated with the island in 1919.

Fisher bought the island as a retirement retreat, and gave it his name.

The Florida land boom of the 1920's diminished Carl Fisher's thought of retirement. Fisher became friends with William Kissam Vanderbilt, one of America's wealthiest men, and Vanderbilt sensed Fisher's waning interest in island living.

"Willie" often invited Fisher to social gatherings and fishing parties aboard his luxurious yacht, the Eagle, of which Fisher was more than fond. In 1925, Vanderbilt proposed a trade to his friend: Fisher Island for the Eagle. Fisher gladly accepted.

Vanderbilt began construction of his elegant Mediterranean-style family estate a year later and brought with him an even larger yacht!

Vanderbilt built his dream, and faced his estate boldly out to sea, properly aloof and invisible from the mainland.

The $1.5 million baronial estate was indeed impressive even by millionaire's standards. The magnificent Vanderbilt Mansion was replete with seven huge marble fire places, imported hand-hewn English oak, Victorian mahogany paneling and three-inch solid wood doors. Vanderbilt adorned it with European art treasures, and built an immense kitchen rivaling that of any gourmet restaurant. During the 1930's and 40's, William and his second wife, Rosamund Lancaster Warburton, kept their staff busy, as they hosted society's most extravagant affairs.

Vanderbilt kept family and friends quite content with a nine-hole golf course, swimming pool, tennis courts, an aviary and fishing ponds. He even built a hanger for his seaplane.

Grace and grandeur were William Vanderbilt's pleasure until he died in 1944. At that time, the island estate was sold to Edward S. Moore , whose family owned U.S. Steel. Moore reportedly paid Vanderbilt's widow a mere $500,000 for the property, and divided his time between the Fisher Island home and Hialeah Race Course, in which he was the dominant stockholder.

After Moore's death in the early 1950's, a man named Gar Wood bought the secluded island. Famed inventor of hydraulic construction equipment, boat builder and speed boat enthusiast, Wood loved the old mansion for the 20 years that he lived there.

In the early 1960's, Wood sold Fisher Island to an investment group that included Richard Nixon and was headed by Key Biscayne banker Charles (BeBe) Rebozo. The agreement was for Wood to occupy the island as long as he wished. He moved from Fisher Island in May of 1971 and died a month later.

A partnership comprising Island Developers, LTD., and Mutual Benefit Life Insurance Company of New Jersey acquired Fisher Island in 1979. In 1998, Fisher Island resident John Melk and real estate developer Daniel E. McLean purchased the island, and formed Fisher Island Holdings, LLC to continue the development of the island. Just as William Vanderbilt desired the very best for his guest, so will Fisher Island continue the tradition for its residents.

Fisher Island offers a unique lifestyle that combines the beauty and tranquility of island living with luxurious accommodations and the finest amenities and services.

We think Willie Vanderbilt would approve.

    CONTACT:  Kreps & Adams
               Sissy De Maria, 305/663-3543