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Hilton Hotels Corporation Introduces New Urban Vacation Ownership Product: The Hilton Club

Beverly Hills, Ca., April 16 2002— Hilton Hotels Corporation today announced the launch of a new urban vacation ownership product, The Hilton Club™, the first of which is scheduled to open December 2002 in Manhattan’s Hilton New York hotel. The Hilton Club concept establishes a distinctive new niche in the vacation ownership industry by incorporating a spectacular urban setting and a collection of high-end services and exclusive travel privileges tailored for Members Only.

The Hilton Club - New York is currently under development as the flagship property in the new Hilton Club Collection™, and will be located on two designated floors of the Hilton New York at 1335 Avenue of the Americas. Each of the 78 planned studio; one-and two-bedroom accommodations will feature beautiful decor and a host of exclusive amenities. Pre-opening sales are slated to begin in Summer 2002. The Hilton Club will be managed by Hilton Grand Vacations Company, LLC (HGVC), and guest services will be provided in conjunction with the Hilton New York. Units of varying size will be available at prices ranging from $20,000 to $100,000.

“The Hilton Club clearly establishes a new level of synergy between vacation ownership and hotel lodging by enhancing existing company assets, while providing Club Members with unprecedented advantages of combined hospitality,” said Antoine Dagot, president and CEO of HGVC.

Hilton Grand Vacations Company, LLC, is wholly owned by Hilton Hotels Corporation (NYSE: HLT), recognized internationally as a preeminent hospitality company. Headquartered in Orlando, Fla., HGVC develops, markets and operates a system of brand name, high-quality vacation ownership resorts in select vacation destinations. The company also operates an innovative club membership program, Hilton Grand Vacations Club, providing exclusive exchange, leisure travel and reservation services for more than 50,000 HGVClub Members.

Kathy Shepard, Vice President, Hilton Hotels Corporation, 310-205-7676

Elena H. Norman, Director of Communications, Hilton Grand Vacations Company, 407-521-3178 </font>