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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
Island 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 or
other natural occurrences, the possibility of oil or hazardous waste spills
offshore, the impact of

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increased fuel or other 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 that they have 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.

      RISKS RELATED TO THE PROPOSED MERGER. Risks associated with the proposed
merger include the risk that the proposed merger is subject to various closing
conditions and these conditions may not be satisfied and the risk that the
proposed merger may not close for other reasons.