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RTCI's ClubShare™ Has No Direct Competitor

All other golf travel packages are designed to "capture" vacationers one time, with the hope they may return. The ClubShare™ Memberships provide at least 5 annual vacation opportunities, not including renewals. Our Programs also offer additional benefits that provide year round membership, not just a one time, one week vacation.

ClubShare" Compares Most Favorably with Traditional Vacation Destinations

Though not directly comparable, resorts in the major vacation destination areas, most notably Florida, the Carolinas, Georgia and Arizona are more directly competitive with RTCI. These areas have captured the largest market share of interval owners and vacation golfers in the world. Currently it is estimated that these five states capture 75% of the traveling golfers from the U.S. and Canada. It is the main reason why RTCI affiliates with or purchases properties in these areas in order to offer an alternative to the traveling golfer. Our high quality, reasonably priced ClubShare™ Membership Programs, delivered to large numbers of educated consumers in a friendly and personal way, will certainly compete favorably with the traditional resorts.

Unlike Travel Agencies and Golf Travel Packages, ClubShare™ Provides Year Round Value

The majority of the Company's competition is from travel agencies and golf travel packages that try to offer reasonably priced vacations. This market is highly segmented and relies on selling shoulder seasons for competitive pricing. The Company's opportunity lies in its ability to deliver its programs year round at reasonable prices.

Fractional Programs and Residence Clubs Focus on Real Estate, Not Golf

Currently, The Owner's Club Corporation of America offers a fractional interest program called "Owners Club." This program offers golfers a chance to buy real estate at a resort golf course for a one-month use per year. This is a wonderful program with a wonderful starting price of $75,000. It does not compete with our program that is targeted for the majority of the traveling golfers.

Other companies have now entered the high-end residence club arena but the majority of them focus on selling real estate at $150,000 to $300,000 fractional interests. Although many provide golf as an amenity it is not the focus of their marketing campaign.

RTCI's Focus is on Great Golf for our Members and the Golf Industry

Our industry focus is where our hearts are, the golf industry. Our marketing acumen and technology is focused on developing our golf membership programs in resort and major markets in the United States. The Company's golf membership discount card program has increased the rounds of golf played on participating golf courses from 3,000 to 5,000 additional rounds per year. RTCI has been successful because it provides a valuable income-generating program to existing golf resorts without affecting existing marketing programs of the club. Most golf courses concentrate their marketing in a 10-15 mile radius of their facility. RTCI programs are structured to capture additional course revenues from the regional and national golfers. This makes our programs compatible instead of competitive with our participating clubs.

ClubShare™ Serves the Golfers Priced Out of Golf Vacations

The Company's new marketing operation, the ClubShare™ Resort Club program, will target the growing niche of golfers who have been priced out of the market for golf vacations. The Company will acquire land at various resort golf properties that are strategically located in the major national golf destination areas and build 3 to 6-plex golf lodges to handle the accommodation needs of our national members. Until the national membership has reached its quota at each resort the units will serve as the hospitality side of our mini vacation promotional program. By allowing the potential member to experience the product first hand, the conversion rate to membership is greatly enhanced. The unique feature of this program is the emphasis placed on the avocation of the buyer not on the real estate. The buyer is more interested in the venue because of the opportunity to be a member of a great golf course, not on the quality of the lodge units. The member is not buying real estate in our program; he is buying a membership in a great golf course that has accommodations for its national members. This is the biggest difference in our program and other real estate driven programs in the U.S. Our test marketing has proven that closing ratios on our program versus traditional real estate programs is at least twice as successful in the conversion process.

We are About Our Members' Golf Experience - Not About Selling Real Estate

When the purchase of real estate is involved it requires more decision time, more paper work and the purchase price is at a minimum of three to four times the price of the membership. The marketing premise for this program is to create a low cost alternative for the average golfer who wants to enjoy the best golf venues in the U.S., but cannot afford the down payment and the monthly commitment that is required by purchasing real estate.

The Company benefits because it amortizes the cost of the hospitality units over the first five years of the membership and creates additional capital assets for the Company going forward. Our company is not in the real estate development business; we are in the membership renewal business. The Company does not have to continue to build new units after the first five years to be successful. The value of this program is in the renewal of memberships after the five-year period without the concern for acquiring and building more lodge units.