Great American Resorts announces 1995 fiscal year end results and 1996 business plan; Projects first time positive cash flow by late 1996.

ATLANTA--(BUSINESS WIRE)--Jan. 22, 1996-- -0-

    Total assets up 122%
    Total revenues up 168%
    Operating loss down 41%
    Company takes one time writedowns totaling $719,994
    Total loss (including writedowns) up 13%

Great American Resorts announced audited financial results for its fiscal year which ended June 30, 1995.

Total assets increased from $4,059,752 to $9,027,784; a gain of 122% over fiscal year which ended June 30, 1994. Total assets have increased 3,500% since Jan. 1, 1992. Total revenues increased from $728,137 to $1,953,331; a gain of 168%.

In anticipation of future profitability, the company took one time operating losses and writedowns on its former broker/dealer of $577,981 and on its infomercial of $142,013 for a total one time writedown of $719,994. The writedowns contributed to a total loss of $1,567,748, up from $1,321,340; an increase of 13%.

The loss from current operations was down 41% from fiscal year 1994. The operating loss for fiscal year 1995 was $715,653. $321,943 of the operating loss came from noncash categories such as depreciation and amortization.

In 1995, the company significantly changed its business plan for the purpose of dramatically increasing assets and achieving a positive cash flow (excluding depreciation) by late 1996. The new business plan calls for the company to aggressively purchase hotels, sell subsidiaries generating losses and complete the renovation and development of its current properties.

The first property developed by the company was the Gatlinburg Resort which annually produces strong profits. The resort achieved an outstanding 91% occupancy in the past fiscal year and the company does not intend to sell the resort in the near future.

In spring 1993, the company purchased 23 townhouses on Hilton Head Island, S.C. for a long term capital gain. The company has sold six of the townhouses and has 15 of the remaining 17 under contract to sell for a capital gain of over $300,000 for all 21 units. The last 15 are scheduled to be sold (three per month) before May 31, 1996. Historically, the revenue of the units has not completely met their expenses and thus the sale of these units will allow the company to: eliminate an ongoing operating loss; experience a one time capital gain of over $300,000; release over $600,000 in equity for use in purchasing and/or renovating another hotel; and retain two units for the use of the company's shareholders.

In January 1994, the company purchased a 15,500 square foot building in Norcross, Ga., a suburb of Atlanta. The company is completing plans to renovate the building into an executive office center which would house approximately 40 office suites, 32 of which would be available for rental to the public. The suites would rent for between $400 and $1,000 per month depending on their size. The executive center also plans to charge for use of the conference center as well as for telephone, facsimile, secretarial and copy services. The company believes the executive center will become a strong profit center after the renovations and marketing are completed. The company is attempting to complete the renovation of the executive center before the Atlanta Summer Olympics in July 1996.

In May 1994, the company purchased its broker/dealer subsidiary which was subsequently sold in July, 1995. The broker/dealer had sustained a loss of $577,981 in the previous year, the greatest loss of any of Great American's companies. The sale should have a dramatically positive effect on future financial results.

In the fall of 1994, the company purchased a tract of land in County Kerry, Ireland which is approximately 12.4 acres in size. The property offers 360 degree panoramic views of the world renowned mountains and lakes of Southwest Ireland. The company has retained an architect to design and seek planning permission for up to 30 traditional cottages with full amenities. The property will be designed from a concept similar to the Gatlinburg project; traditional, high quality homes in a spectacular, unspoiled setting. The company believes that the property, if approved and completed could, like the Gatlinburg Resort, become a significant profit center.

In January 1995, the company purchased the Cheer's Hotel and Casino in Reno, Nevada. The hotel is excellently located only two blocks from the new $360,000,000 Silver Legacy Hotel and Casino and is also located two blocks from the new 80 lane National Bowling Stadium, the world's largest. To dramatically reposition the hotel in the market and transform it into a significant profit center the company has: acquired a Ramada franchise; retained new onsite management; developed an onsite sales division; and is completing the extensive phase one renovation of the hotel's 110 rooms and shareholder suites, casino area, lobby and restaurant.

The hotel is scheduled to become a Ramada Hotel in February, 1996. The phase two renovation, scheduled to begin in the spring of 1996, will involve adding stucco and "Las Vegas" style lighting to the exterior as well as renovating the pool and conference areas. The company believes the hotel's excellent location combined with the contributions of the excellent Ramada name and worldwide reservation system, the new onsite hotel and sales management teams and the completion of the $400,000 plus renovation will result in the Ramada Hotel and Casino achieving a positive cash flow in the summer of 1996 and strong profitability in the years to come.

In June 1995, the company contracted to purchase a 51% interest in the Ocala Limited partnership which owns the Holiday Inn of Ocala, Florida. Under the terms of the contract the company placed a deposit of $250,000 and 100,000 shares of Class A Common Stock. The hotel received of $4,300,000 in revenues in fiscal year 1995 and currently has a positive cash flow. The company intends to purchase a total of 85% of the partnership for a total of $1,000,000 and 100,000 shares of Class A Common Stock. The $1,000,000 will finance a renovation of the hotel which is scheduled to be completed by December, 1996. The company believes that after the renovation is completed, the hotel will experience a strong positive cash flow in 1997. The completion of the purchase will bring the company's assets to approximately $16,000,000.

The company is currently negotiating to purchase another hotel with very strong positive cash flow. The property is located on the Gulf Coast in Biloxi, Mississippi. If the company is successful in negotiating and executing a contract with the owners of this property, which can not be assumed, the contract will be announced.

The company currently plans to continue its shareholder benefit indefinitely. The benefit allows holders of 1,000 shares or more to purchase a coupon for $49.00 which entitles them to 7 days/6 nights of lodging at any of the company's properties, contingent upon availability. The company is involved in talks with a global vacation exchange club concerning the possibility of the company's shareholders exchanging their weeks of vacation at any one of the vacation club's 1,000 plus resort destinations.

In summary, the Great American Resorts new business plan calls for the company to aggressively purchase hotels, sell subsidiaries generating losses, and complete the renovation and development of its current properties. To implement the new business plan, the company has: developed its Gatlinburg property into a strong profit-center; begun selling its Hilton Head units for a substantial capital gain; begun to renovate its executive office center in Atlanta; sold its loss ridden broker/dealer subsidiary; retained an architect to deliver a final design and planning permission for its property in Ireland; purchased, renovated, renamed and begun remarketing the Ramada Hotel and Casino in Reno, N.V.; contracted to purchase a 51% interest in the Holiday Inn of Ocala, Florida; and initiated extensive negotiations to purchase another hotel with strong positive cash flow in Biloxi, Mississippi. Great American Resorts believes the continued implementation of this business plan will result in the company significantly increasing assets and achieving a positive cash flow (excluding depreciation) by late 1996. The Company's common stock trades on the Electronic Bulletin Board under the symbol GARRA.

For further information on Great American Resorts call 1-800-200-4286.

CONTACT: Great American Resorts, Atlanta

Edward L. Bates, 770/476-3936