"We've successfully grown Outrigger to become one of the largest, fastest-growing, privately held lodging and hospitality companies in the Pacific," said David Carey, President and Chief Executive Officer of Outrigger Enterprises. "Our new strategy calls for us to continue to build on that rich legacy and to deliver the Outrigger promise of an authentic vacation experience for our guests, both here in Hawaii and to new destinations throughout Asia and the Pacific," Carey said. The company noted that with the huge, long-term growth potential of travel in and around Asia, Outrigger will have great opportunity to apply its unique brand of hospitality management.

Carey also highlighted the implementation of a financial re-engineering plan under the direction of Chief Financial Officer Mel Wilinsky. "Our new approach will enable the company to raise significant capital to fund its growth plans, diversify its investment holdings and yet preserve our management presence in Hawaii. The strong capital market climate in Hawaii has enabled us to attract financial partners from around the world to invest in our Waikiki Beach Walk project and to explore new hospitality opportunities in Hawaii and the Pacific," said Carey.

"Even though we are expanding, our deep commitment to Hawaii and its people has not changed," added Carey. "We are excited to share Outrigger's unique brand of aloha and exemplary service throughout the Pacific Rim."

Outrigger also announced some personnel and management structure changes in conjunction with the unveiling of its new strategic plan.

In an emotional speech to the company's management group, Perry Sorenson announced he is retiring after 15 years as Executive Vice President and Chief Operating Officer of Outrigger Hotels & Resorts, effective December 31, 2005, in order to spend more time with his family. Sorenson will remain as a senior advisor to the company to help ensure a smooth transition. Sorenson helped expand the state's largest hotel chain from being exclusively in Waikiki, to becoming a dynamic force in the Pacific. Today Outrigger has nearly 60 properties open or under development throughout the Pacific, including in Australia, New Zealand, Fiji, French Polynesia and Guam, among others.

"We weathered the tough times, including the Gulf War, and grew the company to become a hospitality leader in the Pacific," said Sorenson. "I am extremely proud of what we've accomplished, and it feels good knowing I am leaving the company when it is at its zenith. I know the tremendous Outrigger team will continue to build on the vision we began 15 years ago and will take the company to even greater heights," said Sorenson.

Barry Wallace, currently Senior Vice President of Operations, is being promoted to Executive Vice President of Hospitality Services. In his new role, Wallace will assume the majority of Sorenson's responsibilities which include all of the company's operations, sales and marketing functions. Wallace will help guide the repositioning and opening of several properties in Outrigger's Waikiki Beach Walk project and help to implement the company's new strategic growth plan.

"I welcome the opportunity to build on Perry's vision and to help take Outrigger into a new era of growth," Wallace said. "We have a tremendous team, and Outrigger is extremely well positioned to continue to expand beyond Hawaii's shores," he added.

Mel Kaneshige, currently Senior Vice President in charge of the company's real estate assets, will take on the additional responsibilities for new business development. As Executive Vice President for Real Estate and Development, Kaneshige will continue to ensure the successful completion of the Waikiki Beach Walk project and will head up the effort to find new projects to implement the company's growth plans. Bill Henderson, current Vice President of Development, and newly hired Darren Edmonstone, Vice President of Asset Management Planning, will assist him in this effort.

"We've had a successful track record of growth," said Carey. "Our new plan calls for us to aggressively add even more properties to our portfolio of destinations and to export our unique Outrigger brand of hospitality throughout Asia and the Pacific. As the Asian and Pacific markets grow and mature as tourist destinations, we want Outrigger to be right there with them," added Carey.