MCLEAN, Va., June 7—Crestline Capital Corporation (NYSE: CLJ) announced that it has closed on the previously announced merger of Crestline with a wholly-owned subsidiary of Barcelo Corporacion Empresarial, S.A., which together with its affiliates, is one of the world`s largest hospitality companies and is based in Palma de Mallorca, Spain. The new company will be named Barcelo Crestline Corporation.

The merger was approved by the holders of 77.9% of Crestline`s shares outstanding and entitled to vote at a special meeting of stockholders that was held on June 6, 2002. The affirmative vote of the holders of at least two-thirds of Crestline`s shares outstanding and entitled to vote was required to approve the merger. Stockholders will receive $34 in cash for each share of Crestline common stock owned.

Deutsche Banc Alex. Brown acted as exclusive M&A advisor to Crestline Capital and Banc of America Securities acted as exclusive M&A advisor to Barcelo for this transaction.
Stockholders will receive a letter of transmittal from the paying agent, The Bank of New York. All inquiries regarding the merger consideration should be directed to The Bank of New York at 1-800-507-9357.

Barcelo Crestline Corporation is the parent company of Crestline Hotels & Resorts, among the nation`s leading independent hotel management companies. Barcelo Crestline also leases and has investments in hotel properties. Additional information about Barcelo Crestline is available at the company`s web site: http://www.barcelocrestline.com .

Crestline Hotels & Resorts manages and leases 40 hotels, resorts and conference and convention centers with over 7,000 rooms in twelve states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well regarded brands as Marriott, Hilton, Sheraton, Renaissance and Crowne Plaza. Additional information about the hotel management company is available at the company`s web site: http://www.crestlinehotels.com .

Barcelo is one of the world`s largest hospitality companies and is based in Palma de Mallorca, Spain. The company is 100% owned by the Barcelo family and has been run by three generations of family members. Barcelo and affiliates own, manage and lease 108 hotels in 16 countries across four continents, including 18 hotels in the United States. In addition, the company owns an equity interest in one of Europe`s leading travel groups, First Choice Holidays PLC. Additional information about Barcelo is available at the company`s website: http://www.barcelo.com .
——-