to QuietLion & philforest:

PARADISE ISLAND, The Bahamas, May 18
Sun International Hotels and Starwood Hotels & Resorts, Worldwide, Inc. announced today they have entered into a definitive purchase
pursuant to which Sun International has agreed to acquire the Desert Inn hotel and
casino for $275 million from Starwood.

The all-cash transaction is subject to the satisfaction of various conditions contained
in the purchase agreement, including the receipt of regulatory licenses and approvals. The transaction could be expected to close by the second quarter of next year.

The Desert Inn is a 715-room hotel, casino, spa and country club situated on 25-acres on the Las Vegas Strip. The property includes a 140-acre championship golf course and a further 32 acres of undeveloped land on the Strip and
encompasses an entire city block located across from the 3,036-room Venetian Resort Hotel & Casino and the 1.2 million sq. ft. Sands Convention Center. The property is in excellent condition and during 1998 achieved an average daily room rate of $164, one of the highest of any property in Las Vegas. Starwood acquired the property in 1998 as part of its acquisition of ITT.

Sol Kerzner, Chairman and CEO of Sun International, stated ``We are very pleased to have acquired the Desert Inn, which represents 1 of the last premier development sites on the Las Vegas Strip. The property, with its existing hotel, casino, golf course and undeveloped land, plays to Sun's strength of developing outstanding resorts at capital costs that allow the company to achieve good returns on investment.''

As part of the transaction, Sun International and Starwood entered into a marketing
alliance. Sun's properties on Paradise Island, particularly The Ocean Club and Atlantis, as well as The Desert Inn, will be included in Starwood's Preferred Guest
Program. Customers will also be able to make reservations at Atlantis, The Ocean Club and The Desert Inn utilizing Starwood's reservation center. Mr. Kerzner noted
that ``We are very pleased to establish a broad marketing alliance with Starwood.
The company has a very successful frequent guest program and enormously strong
distribution.'' Starwood currently has over two million members enrolled in the Starwood Preferred Guest program. Starwood is one of the leading hotel and leisure companies in the world and, through its subsidiaries, owns, manages or franchises more than 700 hotels in 72 countries under the St. Regis, Luxury Collection, Westin, Sheraton, Four Points and W brands.

Sun and Starwood also agreed to establish a joint venture to develop 350 timeshare
units at the Desert Inn. The companies have further agreed to explore further timeshare opportunities on Paradise Island, utilizing some of Starwood's premier brand names.

``We are very pleased that we were able to conclude a strategic agreement with Sun
International, one of the premier resort operators in the world,'' said Barry S.
Sternlicht, Chairman and Chief Executive Officer of Starwood. ``We believe that a
marketing alliance with Sun will prove very beneficial to Starwood's brands going
forward. This agreement, combined with our recent announcement of the sale of Caesars World to Park Place Entertainment for $3 billion in cash, allows us to focus on our core global hotel business and completes the disposition process begun when we acquired ITT,'' Mr. Sternlicht said. When the sales of Caesars and the Desert Inn are completed, Starwood will have realized total proceeds of over $6 billion from the sale of ITT's non-core assets since February 1998. ``As previously announced, we will use the proceeds of this transaction to pay down debt, strengthen our balance sheet, reduce our cost of financing and reinvest in our worldwide assets and brands. We are especially pleased with the timeshare joint-venture and expect to achieve additional value from this alliance.''


[This message has been edited by shadow (edited 07-07-1999).]