Cendant Corporation (NYSE: CD) has entered into a five-year agreement with CAIS Internet (Nasdaq: CAIS) and VirtuaLINC to offer a high speed Internet access system to more than 700,000 rooms at properties of Cendant�s hotel franchise systems including Ramada®, Howard Johnson®, and Days Inns® and resort properties affiliated with Resort Condominiums International, LLC (RCI), Cendant�s timeshare exchange company. Such properties are visited by more than 65 million travelers annually.  In addition, the broadband links will be made available via public area Internet kiosks planned for placement in select Cendant franchised hotel properties. 

The High-Speed Internet Access system will include CAIS and VirtuaLINC�s joint deployment of IPORT Internet kiosk and meeting room broadband solutions. Guest room connectivity and portal content will be solely based on CAIS�s broadband network.  Meeting room services will include interactive video communications through the use of the V2PN network (Virtual Video Private Network). 

The project, slated to begin roll-out in January of 2000, will target more than 6,000 properties of the Ramada®, Howard Johnson®, Days Inns®, Super 8®, Travelodge®, Knights Inn®, Villager Lodge® hotel franchise systems and resort timeshare properties affiliated with RCI. In-room high-speed Internet access will be made available to guests traveling with laptop computers for a nominal daily rate. Cendant�s Wingate Inn brand previously announced a systemwide comprehensive technical platform including a high speed technology standard. 

The installation of high speed Internet access systems is made possible by the properties� existing telephone wiring. The agreement takes into account technological advances and provides for best-of-breed technology upgrades over the duration of the five-year agreement. Properties will also benefit by sharing in user fees and revenue generated from electronic commerce activities associated with the guest use of the system. 

�This landmark agreement in the hotel industry raises the bar for meeting the expectations of business travelers,� said Eric Pfeffer, Chairman and CEO, Cendant Hotel Division.  �We have all come to expect free Pay Per View, morning coffee and other amenities.  High Speed Internet access, a popularly-requested amenity by our hotel guests, may come to be as common, even MORE common, in mid-market and economy properties as it is in more expensive hotels.  This agreement truly sets the standard.� 

�This project enhances the leadership role played by Cendant in driving both the development and implementation of cutting-edge technology in the hospitality industry,� said Scott Anderson, Executive Vice President, Sales & Marketing for Cendant Hotel Division.  �All 70 of our Wingate properties are already fully wired for High Speed Internet access and have been very well received. Over the next two years, the rest of our brand franchisees will have the opportunity to offer high-speed access to their guests.� 

�Although all the major brands are moving in this direction, no other hotel company has put together a deal that encompasses this many guestrooms,� added Pfeffer.  �We are also saving the business traveler time and aggravation when downloading e-mail and attached documents. Most importantly, we are making it possible for properties to ensure that business travelers and vacationers alike never have to be out of electronic touch with colleagues or family.� 

�CAIS�s full-range of capabilities makes us the easy decision in the hospitality industry for turn-key broadband access and portal content solutions, especially for a leader like Cendant,� said Ulysses G. Auger II, CEO, CAIS Internet. �We will deliver cost-effective broadband Internet solutions, and aim to reach the many millions of Cendant travelers with a reliable, affordable service and customized content for an enhanced online experience.� 

Moti Gura, CEO for VirtuaLINC Corp. said, "We are very excited about the relationship with Cendant under the Preferred Alliance Agreement. The opportunity to offer videoconferencing services and IPORT Internet kiosks to the hotel properties of Cendant's guest lodging systems and the resort properties affiliated with RCI is a valuable one as it allows VirtuaLINC to penetrate effectively a large segment of the hospitality industry." 

This release contains statements relating to CAIS's future expectations and business strategies or other "forward-looking" information.