<div id="featuredarea">
<div id="featured-1">
<?php
query_posts('showposts=1&cat=698');
while(have_posts()) : the_post();
?>
<?php if ( has_post_thumbnail()) : ?>
   <a href="<?php the_permalink(); ?>" title="<?php the_title_attribute(); ?>" >
   <?php the_post_thumbnail(); ?>
   </a>
 <?php endif; ?>
<ul>
<li><h3><a href="<?php the_permalink() ?>" rel="bookmark"><?php the_title(); ?></a></h3>
<ul>
</ul>
</li>
</ul>
<?php endwhile; ?>
</div>
<div id="featured-2">
<?php
query_posts('showposts=1&cat=699');
while(have_posts()) : the_post();
?>
<?php if ( has_post_thumbnail()) : ?>
   <a href="<?php the_permalink(); ?>" title="<?php the_title_attribute(); ?>" >
   <?php the_post_thumbnail(); ?>
   </a>
 <?php endif; ?>
<ul>
<li><h3><a href="<?php the_permalink() ?>" rel="bookmark"><?php the_title(); ?></a></h3>
<ul>
</ul>
</li>
</ul>
<?php endwhile; ?></div>
</div>