Rancho Valencia Resort Announces Exclusive and Limited Residence Ownership Opportunity with New Villas Development; Nearly 50 Percent of Available Shares in Phase One Have Been Reserved Through Word-of-Mouth Alone.

RANCHO SANTA FE, Calif. -- New 10,000 Square-Foot Spa Also Underway to Pamper Villas' Residents, Resort Guests and Locals

For people who dream of purchasing a vacation home in the exclusive community of Rancho Santa Fe, Calif., a golden but limited opportunity exists. Rancho Valencia Resort today announced that San Diego-based R.V.R. Partners is building what some say will be the ultimate in luxury resort residential living. The Villas at Rancho Valencia, a new private residence club offering 96 shared ownership interests in 12 new luxury villas located on the resort grounds, will offer all the benefits of second homeownership. Residents will enjoy the unsurpassed service and amenities also enjoyed by resort guests. What isn't included: The burden of upkeep and worries of maintaining an additional home.

"One problem for those who own multiple homes is often the amount of available time to spend at each place," said Bill Orwig, director of sales for The Villas. "In Rancho Santa Fe, which is considered one of the country's most affluent communities and where an average home costs $2.6 million, the sensible solution to upscale second or third homeownership is The Villas at Rancho Valencia, where you can own without worry for a fraction of the cost of a wholly owned home in the area."

According to Orwig, the current price per share is $440,000, roughly one-sixth the price most people pay to live in Rancho Santa Fe for vacation homes that may stand empty most of the year.

Reservations are now being accepted. Orwig states, "Nearly half of the 64 Phase One shares already have been reserved through word-of-mouth alone and some prospective buyers have put a hold on multiple shares."

At the same time, the five-star resort announced construction is underway on a new 10,000 square-foot concept spa, designed by Laguna Beach-based R. Douglas Mansfield Architects, Inc., in consultation with the well-known spa team of Auberge Resorts. The spa will elevate the resort even beyond its current world-class, award-winning status by providing services to Villas owners, resort guests and residents of Rancho Santa Fe and neighboring communities. The Villas and Spa additions represent a $40 million investment in the luxury resort property.

Villa residents will own a one-eighth fee-simple deeded interest in one of 12 villas. Owners will have four pre-reserved weeks in addition to unlimited access on a space-available basis each year. Owners will enjoy the resort's concierge, room service, dining at the Restaurant at Rancho Valencia, access to their own pool and jetted hot tubs, 18 tennis courts, croquet lawn, biking and hiking trails, soon-to-come spa, access to world-class golf courses and nearly perfect weather year round.

"Forget the hassles of costly repairs that need to be coordinated from afar," said Orwig. "The Villas at Rancho Valencia are entirely managed and maintained by the same staff that has made Rancho Valencia Resort an award-winning experience since it opened in 1989."

These reasons partly explain the phenomenal growth in the vacation option industry. Ragatz Associates, an industry analyst based in Eugene, Ore., states that worldwide sales of fractional clubs rose to $625 million in 2004, a 67 percent increase over 2003. Ragatz estimates this industry will be $20 billion by 2014, as these gains are in line with second home sales where nearly 500,000 people invested in vacation property in 2003, up 24 percent from 2001.

"For years, guests and friends of Rancho Valencia Resort have commented that they would love to live here," said Harry Collins, owner and developer of the 90-acre community of Rancho Valencia, which includes the resort and 29 freestanding homes, including the one in which he lives. "The Villas provide that opportunity with the simplicity and flexibility of usage that make this extraordinary window of opportunity a perfect way to own at Rancho Valencia."

Collins also owns and operates the historic landmark La Valencia Hotel in La Jolla, Calif.

Amenities

Reminiscent of traditional California haciendas, the Villas feature custom furnishings, hand-painted tiles and private garden patios. Each Villa is comprised of 3,500 square feet of indoor and outdoor living space; three bedrooms; three and one-half baths; private entry court; jetted hot tub; indoor and outdoor fireplaces and patio grill. Furnishings will reflect the gracious style of the popular Casitas at Rancho Valencia Resort. The finest finishes, appliances and appointments will create a distinctive personality for each Villa and architecture will blend flawlessly into the surrounding environment. Additionally, a private club house and pool are available exclusively for owners' use.

Interested buyers may view site and floor plans and construction progress by visiting the sales office located at Rancho Valencia Resort, 5921 Valencia Circle in Rancho Santa Fe, or by visiting The Villas online at www.villasranchovalencia.com. Callers may inquire toll free at 866-510-5621.

The Spa

Scheduled to open in Spring 2006, the Spa at Rancho Valencia is directly adjacent to The Villas. Design plans aim to embrace Southern California's warm climate with outdoor gardens and pools, and its native resources by utilizing natural botanicals with avocado, orange blossom and tangerine. Amenities will include 10 treatment rooms with private patios; three will have soaking tubs. Two couples rooms will include fireplaces, patios, outdoor showers and indoor tubs for two. Three pools (hot, warm and cold) and a sauna and steam room will lead to a garden area and lap pool. The Spa is one of only six in the United States that will feature a special Vischy room where state-of-the-art hydrotherapies will be offered. A fitness center will feature the latest in classes, including yoga, and exercise equipment.

Rancho Valencia Resort boasts 49 luxuriously appointed suites, each with a fireplace and private garden terrace, a renowned tennis program, spa services and playing privileges at four nearby golf courses. The resort is a member of the prestigious Relais & Chateaux and is the only Relais & Chateaux property south of Santa Barbara. Rancho Valencia consistently has been ranked as a favorite North American resort by readers of Tennis, Wine Spectator, Andrew Harper's Hideaway Report and Travel & Leisure. The resort was listed on Conde Nast Traveler's 2005 Gold List. Rancho Valencia is located at 5921 Valencia Circle, Rancho Santa Fe, Calif., 92067. For more information or to make reservations, call toll-free 800-548-3664 or visit www.RanchoValencia.com.