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LIHUE, Kauai – June 6, 2008 – The Ritz-Carlton moved closer to introducing its brand of luxury living to Kauai for the first time by breaking ground on two developments at Kauai Lagoons, a spectacular 520-acre oceanfront resort.

With the blue Pacific and Kauai’s verdant mountains providing a picturesque backdrop, a traditional Hawaiian blessing and groundbreaking ceremony was held yesterday to mark the start of construction on The Ritz-Carlton Residences, Kauai Lagoons and The Ritz-Carlton Club, Kauai Lagoons

“We’re proud to be bringing The Ritz-Carlton to Kauai, and we could not have chosen a more idyllic setting for The Ritz-Carlton lifestyle than at Kauai Lagoons,” said Merrill Yavinsky, regional vice president of sales and marketing for The Ritz-Carlton Club and Residences, Hawaii. “We are committed to delivering an unparalleled ownership opportunity here on the ‘Garden Isle’ highlighted by the assurance of world-class service excellence.”

Overlooking the scenic coastline, The Ritz-Carlton Residences, Kauai Lagoons will offer 14 private ownership residences featuring two-, three- and four-bedroom floor plans ranging from approximately 2,519-3,452 square feet. The interior design capitalizes on the prime oceanfront location and views, with a color palette of subtle neutral colors and mahogany hardwood allowing interior spaces to flow effortlessly into the outdoors.

Each residence will be complemented by an expansive lanai of roughly 701 to 2,064 square feet offering panoramic ocean and sunrise views. Prices start at $5.1 million. Reservations are now being accepted and sales will commence in August. Occupancy is scheduled for summer 2009.

The Ritz-Carlton Club, Kauai Lagoons will be comprised of 72 fully furnished fractional ownership residences sold in deeded one-eighteenth interests. Located alongside the resort’s freshwater lagoon, the Club residences will offer two- and three-bedroom floor plans ranging from approximately 1,692-2,118 square feet. Sales reservations are scheduled to begin this October, with prices starting at $200,000 per interest. Occupancy is targeted for late 2009.

The architect for both projects is WCIT Architecture of Honolulu, with award-winning interior designer Terry Henriksen of Venice, Calif., bringing an island-influenced elegance to the living space. Layton Construction of Sandy, Utah is the general contractor.

Also currently under development at Kauai Lagoons is Grand Residences by Marriott, the first Marriott-branded project of its kind in Hawaii. It will consist of 78 private ownership residences offering two- and three-bedroom floor plans ranging from approximately 1,301-1,665 square feet. Henriksen has created an interior living space that is both inviting and relaxing, and includes a gourmet kitchen. Sales are underway with occupancy scheduled for early 2009. Prices start at $1.6 million.

An affiliate of The Ritz-Carlton Hotel Company, LLC and Marriott Ownership Resorts, Inc., a subsidiary of Marriott International, Inc., are developing Kauai Lagoons as part of a 10-year master plan. Other residential offerings in planning include Marriott Vacation Club timeshare villas and private estate lots.

Golf legend Jack Nicklaus is redesigning Kauai Lagoons’ award-winning golf courses, which will be highlighted with four consecutive oceanfront holes overlooking the Kauai coastline. Future plans for the resort also include an upscale restaurant with ocean and golf course views, water taxi service for the 39-acre freshwater lagoon, and a full-service spa.

In keeping with Kauai’s character, approximately 350 acres, or two-thirds of the resort including the golf courses, will remain as undeveloped “green” space. Also being created is a two-mile public pathway within the resort for walking, running and biking that will connect to the shoreline.

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