MAMMOTH MOUNTAIN REAL ESTATE OPERATIONS TO MERGE TO IMPROVE COORDINATION

Combination Aimed at Streamlining Development Activities as Starwood Capital Group Continues to Transform the Mountain into a World-Class Ski Resort

MAMMOTH LAKES, Calif. – July 10, 2008 – MMSA Development, L.L.C. and Mammoth Mountain Ski Area L.L.C.’s (“MMSA”) Planning and Real Estate division will be merged as part of a broader reorganization announced today aimed at improving coordination among all of the development activities within the popular ski resort. As part of the restructuring, Jim Smith has been named head of Mammoth Mountain’s real estate operations and will oversee the companies’ newly combined staff. Mr. Smith has been a resident of Mammoth Mountain since 2003 and has worked for more than a year now on development projects with MMSA’s majority owner, a controlled affiliate of Starwood Capital Group Global, LLC (“Starwood Capital”). Craig Knight will transition from focusing on development opportunities to real estate acquisitions and other areas of interest for Starwood. Mr. Smith previously served as a Vice President of Katell Properties, a leading commercial development firm based in Los Angeles. He holds an M.B.A. from Southern New Hampshire University and a graduate degree in Real Estate Development from USC, where he also served as an adjunct professor at its School of Policy, Planning and Development from 2001 to 2006.

“The combination of the two real estate teams will allow our organization to streamline its development efforts and become more efficient in pursuing several exciting projects we have underway and on the drawing board,” said Jeff Dishner, Senior Managing Director of Starwood Capital. “We believe this restructuring will not only improve coordination among our many projects, but leave the organization better positioned to pursue our ongoing effort to turn the Mountain into a world-class resort.”

Among the development projects currently underway on Mammoth Mountain include:

• Altis – The first phase of these 24 new “ski-in ski-out” luxury townhouses built on the Bridges ski run adjacent to the Eagle Express chair lift are currently under construction. The acclaimed three-bedroom homes offer unsurpassed luxury and breathtaking views across the valley.

• The Mammoth Mountain Gateway –Starwood Capital’s controlled affiliate, as owner of MMSA, working together with local community and political leaders, has engaged Hart Howerton, a leading resort planning firm, to design a community gateway that articulates a clear vision for the redevelopment of downtown Mammoth.

• Eagle Lodge – This in-town ski portal will consist of a nearly 250,000-square foot base lodge, which includes a 70-unit hotel, ski school, rental operation, retail, restaurants and private club.

• Sierra Star – This existing master plan area, anchored by California’s highest elevation 18-hole golf course, is being updated in order to attract the appropriate mix of luxury hotels, residences and recreational amenities referenced in the community’s new General Plan.

• Village at Mammoth – Starwood intends to expand this portal to include 400 additional hotel rooms and residences and over 30,000 square feet of retail, restaurants and entertainment, all connected to Mammoth Mountain via a new ski trail.

“Today’s announcement reinforces our commitment to turn Mammoth Mountain into one of the world’s most talked about destination resorts,” said Jerry Fang, Vice President of Starwood Capital Group. “By combining real estate operations, we expect to become more proficient in attracting some of North America’s best residential builders and recreation, hospitality, and restaurant providers to this wonderful area.”

About Mammoth Mountain Ski Area, L.L.C.

Mammoth Mountain Ski Area is the leading four-season mountain resort in California. With over 1.5 million skier visits, Mammoth Mountain currently is the third most frequented resort in the United States. The company owns and operates a variety of resort businesses including recreation, hospitality, food and beverage and retail. Specific businesses operated by Mammoth Mountain include Mammoth Mountain Ski Area, June Mountain, Tamarack Lodge and Resort, Mammoth Snowmobile Adventures, Mammoth Mountain Bike Park, Mammoth Mountain Inn and also operates Juniper Springs Properties, the Village at Mammoth, and Sierra Star Golf Club in Mammoth Lakes, California. For more information on Mammoth Mountain, visit www.mammothmountain.com or call 800.MAMMOTH.

About Starwood Capital Group Global, LLC

Starwood Capital Group Global, LLC is a privately-held global real estate investment firm based in Greenwich, CT (with its predecessor Starwood affiliates “Starwood”). Founded in 1991, Starwood specializes in the creation and acquisition of real estate-related investments on behalf of commingled investment vehicles that are sponsored and created by Starwood or its affiliated entities. Such real estate-related investments include residential and commercial land development, multifamily, hotel, office, retail, mixed-use, industrial, health clubs, golf and mezzanine debt. Starwood’s clients include public and private retirement programs, university endowments, foundations, international and high net worth investors. During the past sixteen years Starwood and its affiliates have invested approximately $6 billion of equity capital in transactions representing over $30 billion of asset value.

Starwood Capital Group has led the formation and/or growth of several market leading companies including Groupe Taittinger and Société du Louvre, Europe’s second largest hotel network; iStar Financial (NYSE: SFI), the leading publicly traded finance company specializing in commercial real estate mortgage, mezzanine and net lease financing; Starwood Hotels & Resorts Worldwide (NYSE:HOT), a leading global owner/operator of hotels, Westin Hotels & Resorts which was merged into Starwood Hotels & Resorts Worldwide in January 1998; and National Golf Properties/American Golf Corporation, the largest owner/operator of golf courses and related facilities in the U.S., who, together with its private sister company, owned, leased or managed 255 golf courses. It also participated in the formation of and helped led the growth of Equity Residential Properties Trust (NYSE:EQR), one of the premier US multifamily REITs.

Media Contact:

Tom Johnson

The Abernathy MacGregor Group

(212) 371-5999

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