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                                  EXHIBIT 99.1
                                 TO FORM 10-K OF
                           SEA PINES ASSOCIATES, INC.


                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
                        SAFE HARBOR COMPLIANCE STATEMENT
                         FOR FORWARD-LOOKING STATEMENTS

         In passing the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"), 15 U.S.C.A. Sections 77z-2 and 78u-5 (Supp. 1996), Congress
encouraged public companies to make "forward-looking statements" by creating a
safe harbor to protect companies from securities law liability in connection
with forward-looking statements. Sea Pines Associates, Inc. ("Sea Pines" or the
"Company") intends to qualify both its written and oral forward-looking
statements for protection under the Reform Act and any other similar safe harbor
provisions.

         "Forward-looking statements" are defined by the Reform Act. Generally,
forward- looking statements include expressed expectations of future events and
the assumptions on which the expressed expectations are based. All
forward-looking statements are inherently uncertain as they are based on various
expectations and assumptions concerning future events and they are subject to
numerous known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those projected. Due to those
uncertainties and risks, the investment community is urged not to place undue
reliance on written or oral forward-looking statements of Sea Pines. The Company
undertakes no obligation to update or revise this Safe Harbor Compliance
Statement for Forward-Looking Statements (the "Safe Harbor Statement") to
reflect future developments. In addition, Sea Pines undertakes no obligation to
update or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results over
time.

         Sea Pines provides the following risk factor disclosure in connection
with its continuing effort to qualify its written and oral forward-looking
statements for the safe harbor protection of the Reform Act and other similar
safe harbor provisions. Important factors currently known to management that
could cause actual results to differ materially from those in forward-looking
statements include the disclosures contained in the Annual Report on Form 10-K
to which this statement is appended as an exhibit and also include the
following:

         RISKS RELATED TO RESORT OPERATIONS. The risks associated with the
Company's resort operations include the intense competition among local,
regional and national


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resorts, the dependence upon Sea Pines and Hilton Head continuing to be
considered as prime destination resort areas, the seasonality of the resort
business, economic or other conditions which may adversely affect tourism,
vacation resorts or the vacation or retirement home industries, generally,
adverse weather conditions, the possibility of oil or hazardous waste spills
offshore, the impact of increased fuel or other transportation costs on travel,
adverse changes in applicable environmental regulation and the possible loss of
one or more of the Company's national golf or tennis tournaments. There can be
no assurance that the Company will be able to compete successfully in the future
with existing and future competitors, or that the Company and Hilton Head Island
will be able to continue to attract the level of resort business the Company has
experienced in the past.

         RISKS RELATED TO REAL ESTATE BROKERAGE OPERATIONS. Risks associated
with the Company's real estate brokerage operations include general reductions
in resort visitors, rising interest rates, other economic conditions which may
adversely affect real estate sales in general or vacation or second-home sales
in particular, competition from other real estate brokerage firms and the loss
of key brokers or sales executives.

         RISKS RELATED TO LITIGATION AND OTHER FACTORS. Other factors which
could affect the Company's operations include the risk of adverse outcomes on
pending litigation, the availability of adequate capital to finance possible
future capital improvements and repairs, and the loss of key members of
management.

         RISKS RELATED TO POTENTIAL "YEAR 2000" PROBLEMS. There can be no
assurance that the Company identified all year 2000 problems in its computer
systems in advance of their occurrence or that the Company will be able to
successfully remedy any problems that are discovered. The Company cannot
estimate the expenses to which the Company may become subject as a result of
such problems, or that such expenses will not, ultimately have a material
adverse effect on the Company's business, financial condition and results of
operations. In addition, failure of the Company to identify and remedy all year
2000 problems could put the Company at a competitive disadvantage relative to
companies that have corrected such problems.