Irvine to Re-open First Component of Pelican Hill in Fall 2007

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. October 14, 2008

NEWPORT COAST, CA, July 18, 2007. Inspired by the Renaissance belief that humanity is uplifted by aspiring to perfection, a destination resort is taking shape on Newport Coast that will set a new international paradigm in resort exclusivity, style and guest experience.

The Resort at Pelican Hill is a masterpiece in the making, built upon the principles of Italy's most renowned architect of the period, Andrea Palladio. The resort will open in two phases: the Pelican Hill Golf Club, with 36 holes of Tom Fazio-designed golf and signature Pelican Grill restaurant, in fall 2007; all other components from the bungalow and villa accommodations to the function space, spa, wedding chapel and Coliseum pool in fall 2008.

"The Resort at Pelican Hill will be a sanctuary at one with its spectacular seaside setting, imbued with Mediterranean architectural principles of simple grace and harmony with nature and balanced with comfortable California style," said Clarence Barker, executive vice president, The Irvine Company, the developer of the resort. "Guests will be immersed in refined and uplifting comfort far removed from today's world. It is being created piece by exquisite piece, detail by articulate detail, and will emerge a masterpiece of the art of hospitality."

Construction is progressing on a 504-acre site that enjoys one of the most serene coastal settings in Southern California where the Pacific Ocean laps wide, sandy beaches and thousands of acres of coastal habitat are permanently protected as open space or designated for recreational uses only - located just south of Newport Beach in Newport Coast. From nearly all the exquisitely appointed and ultra-luxurious bungalows and villas, as well as from many interior and exterior public areas, there will be vivid panoramas of this natural bounty.

"Our vision is to capture the beauty and spirit of this sea and land, which is why Palladio's architectural philosophy of creating harmony with nature is a natural fit," said Barker.

Palladio (1508-1580) is celebrated for his churches, villas, palaces and other grand edifices in Northern Italy. Arguably the most influential Italian architect ever, over the centuries his architectural style - based on the classic building principles of ancient Rome and Greece, and emphasizing perfect harmony with the natural landscape - has been internationally heralded.

The Resort at Pelican Hill will have a breadth of facilities that is stunning and innovative:

---| 204 Bungalow Rooms and Suites: Private and spacious, they will have a residential feeling highlighted by luxurious beds, comfortable sitting areas, private patios, wood-beamed ceilings, fireplaces framed by Italian limestone and marble baths. Reminiscent of an Italian seaside village, they will be terraced on a hillside creating ocean views from virtually every bungalow.

128 Villas: Ideal for longer stays, they will offer two, three or four bedrooms and a variety of special amenities and services from a two-car garages to a personal butler.

---| Pelican Hill Golf Club: One of California's premier golf facilities with 36 holes will open in fall 2007. Tom Fazio returned to re-perfect Pelican Hill Ocean North and Pelican Hill Ocean South, which he originally designed in the early 1990s, in a location he describes as "one of the most spectacular in golf." A combination of both physical and functional improvements to the courses will be complemented by a newly built clubhouse that will offer the ultimate in appointments and amenities, including a signature restaurant.

---| Coliseum Pool: The timeless curves of Rome's Coliseum inspired what will be a perfectly circular pool, 136 feet in diameter, with an amphitheater of terraced decks offering private cabanas, sunbathing areas, dining and fabulous views.

Dining: The multiple choices will include an authentic espresso bar, casual poolside dining, exquisitely prepared Italian cuisine, and upscale California cuisine at Pelican Hill Golf Club.

---| The Spa: The 20,000 square feet will house 22 private treatment rooms and feature a menu of rejuvenating and heralded therapies and treatments from around the world.

---| unction space: The resort will offer a variety of indoor and outdoor spaces for every type of function and event, including a one-of-a-kind facility, which will be detached from the hotel with its own arrival area, and floor-to-ceiling glass walls revealing dramatic ocean views.

---| Weddings: With its spectacular ambiance, magnificent vistas, and such venues as an ocean-view lawn with a gazebo and an Italian-style wedding chapel, the resort promises to become a premier location on the California coast for wedding events.