For the year ended December 31, 1998, the company's net income adjusted for a one-time restructuring charge was $2,190,000 up 32% over the comparable prior year period's results of $1,664,000 (excluding a non-recurring officers' stock compensation charge), revenues increased 90% from $50.7 million to $96.4 million.

John E. Danneberg, President and Chief Executive Officer of the Company stated: "We continue to see significant improvement in the local market management of our operations, specifically in managing our apartment inventory. This translated into a doubling of our bottom line profitability in the fourth quarter. As we look toward 1999, our primary focus is to drive revenue growth through new market expansion, marketing alliances, selective acquisitions and by aggressively investing in our Internet Website. 

During the fourth quarter of 1998, Web related sales accounted for close to $500,000. This is a fraction of the market potential. We plan to better saturate the Web with information about BridgeStreet. A common comment from many of our new customers is that `we are the best kept secret in lodging.' We will be enhancing our Website in areas that respond to our customers' demands -- to provide greater access to information, more interactivity and more choices." Mr. Danneberg went on to say, "Our information technology investments, both in the operational and Internet areas, strategically position us to gain market share in the lodging industry. The temporary housing marketplace continues to grow and evolve with market awareness. We are being recognized by the consumer as a better price/value lodging alternative."

BridgeStreet offers upscale, fully furnished apartments, townhouses and condominiums primarily for business travelers and relocating corporate executives who need lodging for one night up to several months or more. A typical unit is considerably larger and its cost per night considerably lower than traditional and extended-stay hotels. The company's diverse customer base centers on Fortune 2000 corporations, professional firms and travel-wise individuals.

This release contains forward-looking statements which involve risks and uncertainties. The company's actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to, the company's planned rapid expansion, risks related to acquisition financing, dependence on third parties, market acceptance of the company's brand name, and factors affecting travel. These factors are more fully discussed in the company's Registration Statement on Form S-4 filed with the Securities and Exchange Commission (File No. 333-39187).