Canyon Ranch To Operate Full-Service Spa At Gaylord Palms Resort And Convention Center In Florida

TUCSON, AZ - December 13, 2001 - The world famous Canyon Ranch, leading operator of destination health resorts, will operate the spa, beauty salon, wellness and fitness facilities at the new Gaylord Palms Resort and Convention Center in Kissimmee, Florida, announced Jerry Cohen, Canyon Ranch president and CEO. The Resort is scheduled to open February 2, 2002.

According to Cohen, the facility will be operated by Canyon Ranch's SpaClub division. Canyon Ranch SpaClub at Gaylord Palms will feature 20,000 square feet of state-of-the-art spa, wellness and fitness facilities, a luxurious full-service beauty salon, plus a Living Essentials boutique. SpaClub will offer the most desirable spa amenities available: there will be 25 massage, body and skin care treatment rooms, a comprehensive fitness facility with cardio vascular and weight training equipment, plus men's and women's locker rooms with steam and sauna rooms.

Certified fitness instructors will conduct daily group and private fitness, yoga and tai chi classes for guests. Additionally, SpaClub staff professionals will be available to present unique healthy living activities, such as energy breaks, during conferences.

The Canyon Ranch SpaClub Salon will offer complete beauty services for women and men. The extensive Salon menu will feature hair design and nail care treatments, including luxurious spa manicures and pedicures, makeup consultations and makeovers.

SpaClub will also offer an array of rejuvenating spa and body treatments including massages and therapeutic bodywork, mud, aromatherapy, ayuvedic and seaweed treatments, facials and masks and conditioning body scrubs. Canyon Ranch's popular Signature Service, Euphoria, a 100-minute conditioning massage and body treatment, will also be on the spa menu.

Gaylord Palms is a total destination resort featuring world-class meeting facilities, family entertainment and recreation, 1,406 rooms including 115 suites, Florida-themed restaurants and lounges including a 60-foot sailboat in the "Key West" area, and a retail street with fabulous shopping. The resort is just five minutes from the main gate of the Walt Disney World Resort.

Canyon Ranch SpaClub at Gaylord Palms will be Canyon Ranch's third SpaClub facility. The first Canyon Ranch SpaClub opened in 1999 at The Venetian Resort in Las Vegas, Nevada. In November 2001, Canyon Ranch announced it was designing and operating the health spa and fitness facilities on board the Queen Mary 2, a luxury liner from Cunard Lines. Canyon Ranch operates two destination health resorts. The original Canyon Ranch was founded in 1979 by Mel and Enid Zuckerman in Tucson, Arizona. Canyon Ranch in the Berkshires Health Resort opened in 1989 in Lenox, Massachusetts.

In 1996, an affiliate of Crescent Real Estate Equities Company (NYSE:CEI) acquired the real estate and other fixed assets of Canyon Ranch Health Resorts in Tucson and Lenox. Crescent also owns approximately 30 percent of the companies that develop and manage new Canyon Ranch properties globally.