RAINTREE RESORTS INTERNATIONAL, INC. AND SUBSIDIARIES

          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                      (in thousands, except per share data)
                                   (Unaudited)


                                                        Six Months Ended       Three Months Ended
                                                           June 30,                  June 30,
                                                      --------------------    --------------------
                                                        2000        2001        2000        2001
                                                      --------    --------    --------    --------
Statement of Operations
Revenues
   Vacation Interval sales ........................   $ 35,287    $ 35,245    $ 17,277    $ 14,478
   Rental and service fee income ..................      5,552       7,754       3,073       4,164
   Interest income on Vacation Interval receivables      4,149       3,970       1,886       2,014
   Other income ...................................      1,314         634         634        (282)
                                                      --------    --------    --------    --------
     Total revenues ...............................     46,302      47,603      22,870      20,374
Costs and Operating Expenses
   Cost of Vacation Interval sales ................      8,453       9,167       4,235       4,188
   Provision for doubtful accounts ................      2,951       2,262       1,531         772
   Advertising, sales and marketing ...............     15,747      17,544       8,143       7,930
   Maintenance and energy .........................      5,938       8,848       3,114       4,712
   General and administrative .....................      5,583       5,537       2,902       2,865
   Depreciation  and amortization .................        860         776         517         388
   Provision for loss on sale of land held for sale      6,200          --       6,200          --
                                                      --------    --------    --------    --------
     Total costs and operating expenses ...........     45,732      44,134      26,642      20,855
                                                      --------    --------    --------    --------
Operating income (loss) ...........................        570       3,469      (3,772)       (481)
   Interest expense, net ..........................     10,652      10,174       5,295       5,042
   Equity in (gains)/losses on equity investments .         47        (489)        (29)          6
   Foreign currency exchange (gains)/losses, net ..        996      (1,640)      1,774      (1,879)
                                                      --------    --------    --------    --------
Net loss before taxes .............................    (11,125)     (4,576)    (10,812)     (3,650)
   Foreign income and asset taxes (benefits) ......         37       1,340          (3)      1,043
                                                      --------    --------    --------    --------
Net loss before preferred dividends ...............    (11,162)     (5,916)    (10,809)     (4,693)
   Preferred stock dividends ......................        254         253         134         121
                                                      --------    --------    --------    --------

Net loss available to common shareholders .........   $(11,416)   $ (6,169)   $(10,943)   $ (4,814)
                                                      ========    ========    ========    ========

Net loss per share
    (Basic and Diluted) ...........................   $  (0.91)   $  (0.42)   $  (0.87)   $  (0.33)

Weighted average number of common shares
    (Basic and Diluted) ...........................     12,636      14,636      12,636      14,636

Comprehensive Loss
Net loss before preferred stock dividends .........   $(11,162)   $ (5,916)   $(10,809)   $ (4,693)

Other comprehensive income:
   Foreign currency translation adjustment ........       (102)        (23)        (85)        130
                                                      --------    --------    --------    --------

 Comprehensive loss ...............................   $(11,264)   $ (5,939)   $(10,894)   $ (4,563)
                                                      ========    ========    ========    ========




         The accompanying notes are an integral part of these financial
statements.