NEWS RELEASE July 16, 1998

KOROR, PALAU On July 15, hotel general manager Stephen Goodall officially opened the doors to the 165-room Outrigger Palasia Hotel Palau. The hotel is the largest in the Republic of Palau, an island destination in the Western Pacific known for some of the world's finest diving and fishing.

During the opening ceremony, Tommy Remengesan, the vice president of Palau, spoke on behalf of the national government and complimented everyone on the successful opening of the property. Alan Seid, vice chairman of Palasia Resorts, Inc., thanked everyone for their fine efforts on behalf of the owners. Stephen Goodall, hotel general manager, then welcomed residents and other visitors to the property who were anxious to view the country's newest and finest hotel.

"This is a momentous occasion for everyone involved," said Goodall. "Since construction first began in 1996, the hotel has blossomed into a true center piece on the skyline of Palau. We look forward to being a contributing member of the local community and enhancing the country's economy by promoting and marketing the hotel throughout the world."

With that goal in mind, the Outrigger Palasia Hotel Palau has committed to being the host hotel for the Micronesia Games, which take place in Palau from July 30 to August 10.

The Micronesia Games originated in 1969 as a means of developing character in Micronesian youth and promoting unification within the region. Today, The Games bring together athletes from throughout the entire Micronesia region to compete in a variety of sports, like track and field, baseball, basketball and tennis. Traditional island sports are also included in the Micronesian All-Around Competition, in which contestants match skills in events such as coconut tree climbing, coconut husking, spear throwing, swimming and diving.

This year, the Micronesia Games will be broadcast live over a 10 day period by Sports Pacific Network to over 100 million people in 29 countries throughout the Pacific Rim, including Alaska, Hawaii, Australia, New Zealand and Japan.

The Outrigger Palasia Hotel Palau is located on the main island of Koror in the island nation's central business district overlooking the Rock Islands and outer reefs of Palau. It offers first-class accommodations and facilities.

Guest rooms feature in-room movies, a safe, refrigerator and color TV. There are adjoining rooms and non-smoking accommodations available. Hotel facilities include a health spa and fitness facility, swimming pool with outdoor lounge area, shops, meeting rooms, business center, travel desk, dive shop and laundry services.

There are a variety of restaurants, including Desomel, a western-style restaurant; Ming, a first-class Chinese restaurant, Rikyu Sushi Restaurant, a Japanese sushi bar; and Yars Club, a roof-top restaurant, lounge and entertainment area.

The Outrigger Palasia Hotel Palau also features Outrigger's signature Voyagers Club, a concierge level of accommodations. Located on the top floor of the Outrigger Palasia Hotel Palau, Voyagers Club guests receive special amenities and services while at the hotel, including use of the exclusive club lounge.

To celebrate the opening of the Outrigger Palasia Hotel Palau, the hotel is offering a special introductory rate of US$ 130 per room, per night through August 31, 1998. Included in the price is a complimentary buffet breakfast for two and a welcome cocktail.

The hotel's published rates for 1998 range from US$ 182 per room, per night for a Deluxe Town View Room to US$ 330 per room, per night for a Voyagers Club Bay View room. Suites range from US$ 350 to US$ 778 per room, per night. Rates vary depending on season booked. They are valid for single or double occupancy through December 17, 1998.

An official grand opening ceremony for the Outrigger Palasia Hotel Palau is scheduled for August 24, 1998.

The Outrigger Palasia Hotel Palau is owned by Palasia Resorts Inc., a Palau joint venture whose principals include Asia Pacific Holdings Corporation of Taiwan and Micronesia Investment & Development Corporation of Palau. It is operated by Outrigger Hotels & Resorts, Hawaii's largest hotel company and the 28th largest in the U.S., offering over 9,000 hotel rooms and condominium units in Hawaii. Outrigger Hotels & Resorts has become a major player in the Pacific resort scene, with properties open in the Marshall Islands, Australia, and now Palau, and projects currently underway in Guam, French Polynesia and Fiji. Last year marked the company's 50th anniversary of doing business in Hawaii.

For reservations or information, call your preferred travel professional or Outrigger Hotels & Resorts toll-free at 1-800-OUTRIGGER (1-800-688-7444) within the U.S., Guam and Canada. Outrigger's toll-free number also is available from 130 countries via AT&T's new Direct 800® Service. Elsewhere call 303-369-7777. Internet users can access information on Outrigger via the World Wide Web at (http://www.outrigger.com). Outrigger's e-mail address is: reservations@outrigger.com.

CONTACT: Sandi Yara, Director of Public Relations or Nancy Daniels, Public Relations Manager: TEL: 808-921-6941 E-Mail: public.relations@outrigger.com

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