Investment Advisor to Tender Shares to Diamond Resorts LOS ANGELES, March 12 /PRNewswire/ -- Chapman Capital L.L.C., investment advisor to two investment funds that together recently owned 8.4% of Sunterra Corporation (Pink Sheets: SNRR); ("Sunterra" or "the Company"), today expressed support for the Company's definitive agreement to be acquired for $16.00 per share by an affiliate of Diamond Resorts LLC. On June 28, 2006, Chapman Capital filed with the Securities and Exchange Commission (SEC) a Schedule 13D filing related to Sunterra, demanding that the Company explore the full scale auction of the Company in its entirety. Robert L. Chapman, Jr., Managing Member of Chapman Capital, commented, "Sunterra Chairman John Ziegelman should be commended for assuming responsibility for Sunterra's stewardship when few others were willing to do so. On behalf of all of Sunterra's owners, we congratulate Mr. Ziegelman's CD Capital Management, as well as Sunterra 13D filer Third Point LLC, for extraordinary effort during this auction process." Chapman Capital intends to tender to Diamond Resorts all remaining shares owned by the investment funds it advises. Chapman Capital L.L.C. is a Los Angeles, CA based investment advisor focusing on takeover and turnaround investing. The firm currently manages over $300 million as the registered investment advisor to Chap-Cap Partners II Master Fund, Ltd. and Chap-Cap Activist Partners Master Fund, Ltd., the combined owners of approximately 9.3% of Embarcadero's common shares. Over the past eleven years, Chapman Capital has agitated successfully for the restructuring or sale of over twenty publicly-traded companies, including a recently closed transaction involving Glenayre Technologies, Inc. and pending transactions involving Carreker Corporation, Sunterra Corporation, and The BISYS Group, Inc. Mr. Chapman previously was employed by Goldman Sachs & Co., Scudder Stephens, & Clark, and NatWest Bank USA. Related news releases, as well as additional information on Chapman Capital, may be found at http://www.chapmancapital.com/. Sunterra Corporation is one of the world's largest vacation ownership companies with more than 326,000 owner families and 96 branded or affiliated vacation ownership resorts throughout the continental United States and Hawaii, Canada, Europe, the Caribbean and Mexico. Related news releases, as well as additional information on Embarcadero Technologies, may be found at http://www.sunterra.com/. DATASOURCE: Chapman Capital L.L.C. CONTACT: John K. Matthews of Chapman Capital L.L.C., +1-310-662-1900, ext. 209 Web site: http://www.chapmancapital.com/ http://www.sunterra.com/

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