PHOENIX (August 12, 1998) - Pivotal Group recently announced that it has purchased the Franklin Covey Institute of Fitness near St. George, Utah. The acquisition marks Pivotal's first expansion into Utah and represents one of a growing number of western U.S. projects being developed by the company outside of Arizona.

Located just north of the Arizona border at 202 North Snow Canyon Road in Ivins, Utah, the fitness resort is less than 300 miles from Salt Lake City and a 90-minute drive from Las Vegas. The property also is just 15 minutes from St. George, a rapidly growing golf, leisure and retirement community.

Pivotal acquired the fitness resort in a partnership with Mark Stromberg of Salt Lake City-based Stromberg Investments from Franklin Covey, one of the country's leading personal and organizational management companies. Pivotal, which has renamed the property "Red Mountain," will focus on developing the resort into a first-class, hotel-oriented spa.

"Our goal is to maximize the potential of this property and create a fully integrated spa resort with a strong emphasis on fitness," said Francis Najafi, managing partner of Pivotal Group. "The combination of breathtaking scenery, new luxury amenities and a strategic location will help us develop Red Mountain into an unparalleled, year-round spa destination for our guests."

Situated on a 60-acre site at the entrance to the spectacular Snow Canyon State Park, the spa property currently offers state-of-the-art luxury hotel-style accommodations adjacent to Snow Canyon, a world renowned hiking venue. In addition to 109 hotel rooms, the property's 25-acre campus features swimming pools, spa and salon amenities, conference rooms, a lecture auditorium and a fitness center with the latest exercise equipment.

Pivotal plans to make major improvements to the spa, including the addition of a full-service, integrated spa building, new outdoor pool areas and more upscale room accommodations. The company will retain the spa's existing management team, and plans to begin the expansion immediately.

Red Mountain represents Pivotal's latest foray into development projects outside of Arizona. The company recently entered the dynamic Bay Area development arena with the acquisition of two office buildings and adjoining land within Harbor Bay Business Park, a 4.5 million square feet office and R&D development situated on the eastern shore of San Francisco Bay. The company plans to purchase additional properties throughout the Bay Area, and has set a combined acquisition goal of $250 to $350 million for the end of 1999.

Based in Phoenix, Pivotal Group is a diversified real estate company dedicated the quality development of resort, residential, office and industrial properties in Arizona and the Southwest. Widely recognized for its ability to combine dynamic planning with a variety of financing approaches, the firm has developed project partnerships with some of the nation's premier real estate companies including Los Angeles-based William E. Simon & Sons Realty, DMB and Southwest Value Partners.

Pivotal Group's portfolio has included such metropolitan Phoenix landmarks as the Camelback Esplanade and the Ritz-Carlton, a Mobil Four-Star luxury hotel. The company owns the 50-property Talley portfolio that includes four major business parks and two master planned communities in three states. Pivotal is currently developing one of these properties known as WestWing Mountain, a master-planned community located in the West Valley.

Mark Stromberg is president of Stromberg Investments and acting president of the Greater Salt Lake City Chamber of Commerce. He formerly was an executive vice president of operations and sales at Franklin Covey Company and Utah vice president of U.S. West Communications.

Headquartered in Salt Lake City, Utah, Franklin Covey provides solutions to help individuals and organizations use proven principles to increase personal and organizational leadership, effectiveness and trust. More than 15 million people use its planners, agendas and training products printed in 28 languages. There are 120 Franklin Covey stores located throughout the United States.

For more information about Pivotal Private Equity, visit www.pivotalgroup.com