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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.

Statements contained in this report that are not statements of historical
fact are intended to be and are hereby identified as forward-looking
statements for purposes of the safe harbor provided 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 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, the impact of the 2001 terrorist attacks on the travel and resort
industry and the Company, the possibility of additional terrorist attacks,
adverse weather conditions including the consequences of a hurricane, the
possibility of oil or hazardous waste spills offshore, the impact of increased
fuel or other





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transportation costs on
travel, adverse changes in applicable environmental regulation and the
possible loss of the Companys national golf tournament. 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
litigation, the availability of adequate capital to finance possible future
capital improvements and repairs, and the loss of key members of management.