�We think this program has the potential to propel Knights into an unique position in the budget segment of the industry,� said Gokal.  �Modernizing our properties on both an aesthetic and functional level will enable Knights to continue attracting guests who are seeking a clean, comfortable lodging experience.  The program is just what we need to fulfill our three prong strategy to prepare for the new millennium.�

The new program was developed to assist franchisees that would otherwise have limited resources for extensive renovations and responds to franchisee requests for assistance with obtaining renovation financing.

 �Cendant�s commitment to its franchisees is our No. 1 priority, and we need to reinvest in our brands,� said John Russell, Chairman and CEO of Cendant Hotel Division.  �The synergistic benefits of belonging to an organization such as Cendant are invaluable. By assisting franchisees in enhancing their properties, we are demonstrating to our guests that Knights is a brand committed to the future.�

Loans, which can be used for exterior and/or interior renovations and signage, will be capped at $100,000 per property. The interest rate will be set at four percent, and loan amounts will be repayable over a three-year term.  All renovations must be completed by October 31, 1999.

The loan program is an outgrowth of Gokal�s philosophy that chains must be willing to listen to their franchisees, understand their needs and provide the vision and actions necessary for long-term success.   The President insists that the second prong of focus for Knights Inn is on consistently providing �customized service� to both its franchisees and guests.  Gokal�s vision is fueled by his central business philosophy that success in the hospitality industry comes not only from product delivery -- it must also accompany superior service delivery.  Knights Inn is one of the first brands in the budget segment to place a major emphasis on guest service.
 
�Vision, excitement and a new era of stability and service are growing the Knights� system,� said Govind Patel, Chairman of the Knights Inn Kourt, the chain�s franchisee advisory Board.  �We are happy to see the benefits of franchising under the Cendant umbrella.�

The third element in Knights Inn�s formula for success is embracing technology.  The brand�s fully integrated, comprehensive property management system, the new Knightline 2020,  is a critical element in Gokal�s plan for providing operating efficiencies and more customized service to Knight Inn franchisees. The enhanced system, made available to Knights Inn franchisees at no cost as a member of the Cendant family of hotel companies, also gives Knights Inn owners the ability to direct market, forecast and track guest preferences.

�Looking toward the year 2000 and beyond, Knights is committed to total satisfaction -- of its franchisees, employees and guests,� said Gokal.  �With the development of a basic, but contemporary Knights Inn room, backed by great guest service and new technology, the chain is ready for the guest of tomorrow.�

Knights Franchise Systems, Inc. is a budget lodging chain of more than 200 franchised properties in the United States and Canada.  Knights Franchise Systems is a subsidiary of Cendant Corporation (NYSE:CD).  For reservations or further information, the toll-free number is 1-800-843-5644 (1-800-THE KNIGHTS).