Crestline Capital Corporation Announces the Closing of the Merger Of the Company With Barcelo Hotels & Resorts

The merger was approved by the holders of 77.9% of Crestline's shares outstanding and entitled to vote at a special meeting of stockholders that was held on June 6, 2002. The affirmative vote of the holders of at least two- thirds of Crestline's shares outstanding and entitled to vote was required to approve the merger. Stockholders will receive $34 in cash for each share of Crestline common stock owned.

Deutsche Banc Alex. Brown acted as exclusive M&A advisor to Crestline Capital and Banc of America Securities acted as exclusive M&A advisor to Barcelo for this transaction.

Stockholders will receive a letter of transmittal from the paying agent, The Bank of New York. All inquiries regarding the merger consideration should be directed to The Bank of New York at 1-800-507-9357.

About the companies

Barcelo Crestline Corporation is the parent company of Crestline Hotels & Resorts, among the nation's leading independent hotel management companies. Barcelo Crestline also leases and has investments in hotel properties. Additional information about Barcelo Crestline is available at the company's web site: .

Crestline Hotels & Resorts manages and leases 40 hotels, resorts and conference and convention centers with over 7,000 rooms in twelve states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well regarded brands as Marriott, Hilton, Sheraton, Renaissance and Crowne Plaza. Additional information about the hotel management company is available at the company's web site: www.crestlinehotels.com .

Barcelo is one of the world's largest hospitality companies and is based in Palma de Mallorca, Spain. The company is 100% owned by the Barcelo family and has been run by three generations of family members. Barcelo and affiliates own, manage and lease 108 hotels in 16 countries across four continents, including 18 hotels in the United States. In addition, the company owns an equity interest in one of Europe's leading travel groups, First Choice Holidays PLC. Additional information about Barcelo is available at the company's website: www.barcelo.com .

Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "estimates" or "anticipates" or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions, results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives; and (vii) the ability to find available acquisitions and investment opportunities. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its expectations will be attained or that any deviations will not be material. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.