For WorldMark, 2006 has been a dynamic year, generating a lot of owner and staff excitement about our great new resort inventory.

One of the year’s goals was to add more units at popular existing WorldMark locations. This was accomplished at our resorts in Utah at St. George and Bear Lake, and in Colorado at Estes Park. Currently underway is a 36-unit expansion of our resort in McCall, Idaho, scheduled to be completed in the first half of 2007.

This year we debuted a new “flagship” resort in Indio, California, that is getting rave reviews from owners, with comment scores of 96 percent. Phase II of WorldMark Indio, which will add 166 more units, is already underway. Over in Utah’s Wasatch Mountains, only about an hour’s drive from Salt Lake City, we opened the beautiful, Swiss-themed WorldMark Midway, near several renowned ski areas. We also introduced another urban resort in the highly desirable location of San Diego, California. WorldMark is now the only vacation ownership program in the world offering four incredible urban locations; our exclusive network includes resorts in Vancouver, British Columbia; Seattle, Washington; and San Francisco and San Diego, California. 

Here’s a chart listing all the new resort units, along with their credit values, that have been added to our inventory in 2006:

Resort Location	# of Units	Two Bedroom — Credit Values Red / White / Blue
St. George, Utah	65	10000 / 7000 / 5000
Indio, California	217	11000 / 9000 / 7000
Bear Lake, Utah	40	10000 / 7000 / 5000
San Diego, California	68	15,000* (All Red weeks)
Midway, Utah	30	10000 / 8000 / 6000
Estes Park, Colorado	33	10000 / 8000 / (No Blue)
Total	453

With real estate values and construction costs soaring through the roof over the past few years, Trendwest Resorts, Inc., the developer for WorldMark, The Club, has continued working hard to find such great new resort locations. At the same time, market conditions are impacting the credit values of our new resorts. While every effort is being made to keep new credit values as low as possible, some adjustments may be necessary going forward as we continue developing in desirable places.

Some great news: While our new San Diego property does reflect higher credit values, the owner feedback there has been phenomenal, with comment scores of 94 percent and an occupancy rate averaging 93 percent since we opened in June.

WorldMark’s diversity is one of our hallmark traits. Club owners are as diverse as our resort locations. While new resorts may not be in favorite locales for all owners, each resort brings the opportunity for a new and enriching vacation experience. The great thing is that with more than 60 WorldMark resorts, it’s your choice. Your vacation opportunities are varied, numerous, and will continue to grow as Trendwest expands their ongoing sales programs. It is the success of the Trendwest sales effort that gives us the opportunity to expand our network and choices.

The outlook for 2007 is exhilarating, with some outstanding vacation experiences on the horizon. New resorts are scheduled to open in Canmore, Alberta, Canada; Red River, New Mexico; West Yellowstone, Montana; and due to the high demand, another resort in San Diego and another in Las Vegas. Using owner feedback as our guide, we will continue to develop resorts where you want to go, both in existing and new, emerging markets. To all owners, thank you for your continuing support.