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Re: Important Update Affecting Resale Purchasers (by Jessica L.):

Q: What is the scope of the refurbishment project? A: The project includes completely upgrading villa interiors with modern and stylish designs and furnishings that will improve comfort levels and enhance our family's vacation experience at our Home Resort. Kitchens and bathrooms will be enhanced with granite countertops, upgraded cabinets and new tile floors. The following items will be replaced or added, though this list is not all-inclusive: KITCHEN: Granite countertops, cabinets, window treatments, oven/range, refrigerator, microwave, dishwasher, garbage disposal, sink and faucet, trim and paint DINING ROOM: Dining table and chairs, bar stools, carpet, chandelier, artwork and paint LIVING ROOM: Media center with 42" LCD flatscreen TV and Bose® entertainment system, queen sofa bed, lounge chair, carpet, lamp, coffee and end tables, draperies, artwork and paint MASTER BEDROOM & BATHROOM: 32" LCD flatscreen TV, mirrors, lighting, king-size headboard, duvet, nightstands, lamps, dresser, lounge chair, bedroom carpet, draperies, artwork, granite countertop and sink, fixtures and paint GUEST BEDROOM: 32" LCD flatscreen TV, headboards, bed coverlets, nightstand, lamp, dresser, art, window treatment and paint GUEST BATHROOM: Granite countertops, mirrors, vanity, bathtub/shower tile, lighting, fixtures and paint PATIO/BALCONY: Table and chairs Top of Page | Find Other FAQs Q: How was the design and style of the villas selected? A: Vacation ownership design is based upon luxurious comfort. Savvy designers tastefully utilizing layout, furniture and decorative accents to maximize living space and create a more welcoming environment for multi-generational family travel will create the final interior design. The villas will have an elegant and stylish appearance that's currently implemented in the more modern resorts in the vacation ownership industry worldwide. By elevating our standards, our Home Resort will remain a desirable vacation destination for our families year after year. Top of Page | Find Other FAQs Q: Who is the designer? A: We are currently reviewing bids from several design companies of the highest caliber that specialize in vacation ownership property refurbishment. Those companies include IGD Hospitality, refurbishment specialists with 21 years of experience in this type of work. They were the designer of choice for Vistana Lakes and Vistana's Beach Club, recipients of the ARDA Silver Award for Interior Design, which recognizes the top refurbishment projects in the vacation ownership industry. Top of Page | Find Other FAQs Q: When will the refurbishment begin? Will I be able to make a reservation? A: The Vistana Spa refurbishment is scheduled to begin in early April 2010 and to be completed in early January 2011. The construction will cause as little inconvenience as possible to Owners and guests. No services or amenities will be affected, allowing us to relax and enjoy our stay as soon as we arrive. However, because of the massive scope of the project, Sheraton Vistana Resort cannot guarantee that a particular week or villa will be available. Should this occur, the resort will do its best to offer similar accommodations at the resort, in Orlando, or at an alternative resort destination. All Fixed Week Owners will be contacted by Starwood Vacation Ownership Owner Services regarding reservations. Top of Page | Find Other FAQs Q: What is the cost of the renovations? Why are we being billed when we have reserves to replace items in the villas? Are we using the reserves to fund this project? A: The estimated cost of the project is $24 million and will be funded from two sources– existing replacement reserve funds, and the balance through a refurbishment fee to all Owners. The cost of the project is being distributed among the entire Vistana Spa ownership to mitigate the cost to each Owner and make the most efficient use of the reserve funds. Reserve funds that are allocated for specific items, including sofas, appliances, window treatments, bedspreads, TVs, roofs and paving, as previously established in the reserve plan, will be accessed. We will use these funds efficiently; however, items such as countertops, cabinets and bathtubs are not usually included in reserve plans as their expected useful life is equal to that of the structure. Top of Page | Find Other FAQs Q: In the future, will the reserve funds include kitchen cabinets and countertops? A: Yes, kitchen cabinets and countertops will be part of the reserve plan going forward. Top of Page | Find Other FAQs Q: When will the refurbishment fee be billed and when is it due? A: The fee will be billed in three separate installments. Our first invoice will be mailed in late November 2008 in conjunction with the annual maintenance fee and tax invoice, and will be due in mid-January 2009. The second will be mailed in early April 2009 and will be due in early June. The final installment will also be included with our annual maintenance and tax bill. It will be mailed in late November 2009 with a due date of mid-January 2010. Top of Page | Find Other FAQs Q: What is the fee for annual Owners? A: The total estimated fee for our two-bedroom villas is $1,626, and it will be billed in three installments of $542 each. Top of Page | Find Other FAQs Q: How did you arrive at the amount each Owner is billed? A: The amount is based on your percentage of ownership as established and provided in the association governing documents, and the estimated costs to complete the project. Top of Page | Find Other FAQs Q: What is the breakdown of the cost per villa? A: The refurbishment cost for each villa will be approximately $96,200.

Kitchen*, $4,200 Dining room, $3,500 Living room, $12,800 Master bedroom/Bathroom*, $9,700 Guest bedroom/Bathroom*, $5,000 Patio/Balcony, $840 Carpentry/Granite/Millwork, $13,600 Paint/Drywall, $5,700 Tile/Carpet, $4,800 Demolition/Renovation, $15,500 Stairwell improvements, $4,000 Other/Contingency, $16,500 * These estimates are for furniture, fixtures and equipment only. Reserves will be used to offset the refurbishment cost by $13,250 per villa. Top of Page | Find Other FAQs Q: Will Starwood Vacation Ownership profit from the refurbishment? A: No, Starwood Vacation Ownership does not receive any profit from the refurbishment. In fact, the company is required to pay the refurbishment fee for any Vistana Spa villa that it owns, just like any other Owner. Top of Page | Find Other FAQs Q: Does the renovation increase the value of my villa? A: It is difficult to put a value on our refurbished villa but, typically, market conditions or supply and demand dictate the monetary value of vacation ownership villas. As your villa is upgraded with modern and stylish interior designs and appliances, and as the resort becomes a more desirable vacation destination, it is likely that there will be greater demand among vacation Owners. Top of Page | Find Other FAQs Q: How often do refurbishment fees occur? A: Refurbishment fees can occasionally occur, but are not commonplace. In the past, we have replaced items for which replacement reserves were allocated. This is the first refurbishment that included items not in the reserve plan. A refurbishment takes into consideration the aesthetic life of furnishings, while the replacement reserves consider the useful life. Top of Page | Find Other FAQs Q: Why wasn't I given an opportunity to voice my opinion regarding the refurbishment? A: Voting on this matter and most issues associated with the management and operations of the association is solely at the discretion of your Vistana Spa Board of Directors, and we are all Owners. While your board and management company greatly value Owner feedback, it is extremely difficult to ascertain because of the sheer number of association members. The decision to proceed with this project was the result of careful, in-depth and thorough analysis and examination of every pertinent factor. The board meeting held in December 2007 represented the official culmination of approximately two years of painstaking effort, planning and discussion. Top of Page | Find Other FAQs Q: If I choose to do so, how do I sell my villa? A: You may log on to www.ResalesMart.com to list your villa. Top of Page | Find Other FAQs Q: Who can I contact for further queries or information? A: The Association Management team is pleased to assist you with any questions. You can reach them via email at SpaRenovation@starwoodvo.com or by telephone at the following numbers: United States, Canada, Puerto Rico 800-847-8262 407-903-4640

United Kingdom 0-800-89-5065

Mexico 001-800-847-8262

Japan 0053-113-0318 KDDI 0034-800-400-195 NTT 0044-221-233-28 ITJ 0066-338-213-35 IDC

All Other Countries 407-903-4640 Top of Page | Find Other FAQs Q: Do I have the option to make additional payments towards my annual maintenance fees (assessment)? A: Yes, you have the option to build a credit balance towards your