In connection with the acquisition, Marriott paid approximately $52.9 million in cash and issued approximately 2.1 million shares of Marriott common stock to ExecuStay stock and option holders. Marriott also assumed approximately $13.5 million in debt, net of existing assets. Marriott International expects the acquisition to be neutral to earnings per share in 1999, and accretive thereafter.

ExecuStay by Marriott is a strong extension to the company's lodging portfolio and offers a wide range of customized apartment accommodations for long term stays of 30 days or more. With over 6,000 units in 44 states and the District of Columbia, ExecuStay provides "one-stop shopping" for fully furnished and accessorized apartments which include all utilities, phone, cable TV and maid service. ExecuStay owns no residential real estate and provides corporate apartments through short-term lease arrangements between ExecuStay and a network of unaffiliated property owners and managers. ExecuStay can locate and furnish a corporate residence within 24 hours notice. Rental periods average one to three months at a rate of approximately $2,200 per month.

Included as a product offering of ExecuStay by Marriott is Marriott International's residential and commercial apartment cleaning business, HomeSolutions by Marriott. This combination of businesses positions Marriott as a leader in a growing, but fragmented industry composed mainly of unbranded companies with the top four representing just 20 percent of the market.

"We anticipate tremendous growth opportunities in the corporate housing segment," said Joseph Ryan, Marriott International executive vice president and head of ExecuStay by Marriott. "Marriott can add value to the business by leveraging its global sales force, worldwide reservations system, Internet booking capability, business development and procurement programs."

ExecuStay co-founder, Gary R. Abrahams, will remain president and chief executive officer of ExecuStay by Marriott. The leadership team also includes ExecuStay's chief financial officer, Marc Kaplan, and chief operating officer, Robert Zaugg. Joining ExecuStay from Marriott is Lee LaRochelle who has been named senior vice president of operations for ExecuStay by Marriott. Headquarters for ExecuStay by Marriott will remain in the Washington, D.C. area.

Founded in 1986, ExecuStay operates 32 offices throughout the U.S. with a total of 525 employees, and currently generates approximately $150 million in annual revenues.

MARRIOTT INTERNATIONAL, INC. is a leading worldwide hospitality company with over 1,800 operating units in the United States and 52 other countries and territories. Marriott's lodging business includes hotels and vacation ownership (timeshare) resorts operated and franchised under the Marriott, Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites, Ramada International and Marriott
Vacation Club International brands. Other businesses include senior living communities and services, corporate housing, and food service distribution. The company is headquartered in Washington, D.C. and has approximately 133,000 employees. In fiscal year 1998, Marriott International reported total sales of $8.0 billion.*

*At year end 1998 the company changed its accounting policy for the recognition of sales. On a comparable basis, 1998 revenue increased 10% over 1997. The accounting change had no impact on operating profit, net income, earnings per share, debt or equity.

Note: This press release contains "forward-looking statements" within the meaning of federal securities law. These forward-looking statements include, among others, statements concerning the company's outlook for 1999 and beyond; the interim housing market, the lodging industry; business strategies and their anticipated results; and similar statements concerning anticipated future events and expectations that are not historical facts. The forward- looking statements in this press release are subject to numerous risks and uncertainties which could cause actual results to differ materially from those expressed in or implied by those statements.