Press Room

Corporate Update

American Leisure Group Limited (AIM: ALGL), "the vacation resort company", today provides an update on its operations.  ALG remains firmly convinced that its business model and substantial land bank will provide unique competitive advantages as it endeavors to provide a fully integrated approach to the development, sale and delivery of vacation homes, the initial construction of resorts, the sale and financing of vacation club memberships and the management of the resorts as well as international travel services. 

As referred to in the trading update released on 7 December 2007, the months following ALG's admission to the AIM Market of the London Stock Exchange (on 13 August 2007) have proven difficult for virtually all companies involved in the development of property (both residential and resort based) that require significant capital investment or access to large development lines of credit for them to accomplish their planned growth.  The much publicised difficulties in the international debt market have made it difficult for the Company to raise the necessary capital to keep pace with the development of the Sonesta Resort Orlando (the "Resort"), as originally planned.  The Resort is a 122 acre luxury vacation property, which is within 10 miles of Walt Disney World in Orlando, Florida and which will contain about 4,500 vacation residences when completed.  The softness of the US market for virtually all residential property has proven to be an additional challenge, as in the current marketplace lenders no longer distinguish between residential property and resort based vacation home properties.  The Company still maintains a substantial backlog of pre-sold units, giving it a material advantage compared to many resort developers.  However, the current climate of funding limitations has slowed down construction as compared to original expectations. 

The Company has considered the slower pace of resort unit construction and the development of the overall Resort site plan along with recommendations from the management of the Sonesta hotel brand, it seems most appropriate to begin resort operations in the autumn of 2008.  This timing will enable ALG to take advantage of the stronger demand for accommodations in the Orlando area that historically begins in the late autumn and continues throughout the winter months, which are quite mild in Orlando. 

The Company is currently evaluating the financial implication of a slower sales and construction pace and the later opening of the Resort.  Though the amount has not yet been determined, it is clear that earnings for the twelve months ending 31 December 2008 will be significantly lower than previously forecast.  However, delayed unit deliveries are expected to be realised during 2009 and subsequent years as internally generated capital from unit closings and the opening of the Resort will allow for re-acceleration of the development plan and ultimately the implementation of the Company's plans to initiate its planned vacation club business model.  At present, ALG has pre-sale contracts for the delivery of vacation homes valued at approximately U.S$275 million.  In addition, the Company announced today the strategic marketing alliance with The Travel Acquisition Group, one of the largest leisure travel agency networks in North America, together with the sale of its "TraveLeaders" subsidiary.  The Company believes this transaction will bolster its ability to execute its leisure business model. 

As stated above, the Directors of ALG remain optimistic about the long-term prospects of the Company.  ALG's business model is unique in that it meets the demand for vacation / holiday residences that are large in size and set in luxurious, leisure amenity-rich communities and fall within a private club structure that provides both additional Company profit opportunities and exclusive recreational choices that are incremental to the attractions available in the vicinity of the Company's resorts.  This business plan has been designed to cater to the expectations of the growing number of affluent families that are willing to pay for a much more extensive vacation experience. 

In addition, the Directors are pleased to welcome Matt Hagler as President of ALG.  For the last twelve years, Matt partnered with Bobby Ginn in developing his firm's business model, and designing and executing the Ginn Company's construction plans.  He directed the development of the Ginn Company's vacation home and club model.  Previously, Matt spent 18 years developing and operating luxury hotels and resorts.  "Matt joined the Company 60 days ago and has already drawn upon his unique background to contribute a number of valuable insights that will improve the business model of the company", said CEO Malcolm Wright. 

For further information:

American Leisure Group Limited
Fred Pauzar, Director of Corp. Development	Tel: +44 (0) 7866 066 669
Malcolm Wright, Chief Executive Officer	Tel +1 407 251 2240
	www.americanleisuregroupltd.com
Dawnay, Day Corporate Finance
Gerald Raingold	Tel: +44 (0) 207 509 4570
	www.dawnayday.com

Media enquiries:

Abchurch
Henry Harrison-Topham / Gareth Mead	Tel: +44 (0) 20 7398 7700
gareth.mead@abchurch-group.com	www.abchurch-group.com