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Prototype Holiday Inn(R) Hotel Harnesses Powerful Networking Technology From AT&T

Holiday Inn Gwinnett Center Offers Guests Advanced Network Services and Wireless Internet Access in Rooms and Common Areas
ATLANTA -- FEBRUARY 19, 2004 -- When planning its new model hotel in Gwinnett Center, Holiday Inn® Hotels and Resorts turned to global networking leader AT&T to provide a networking solution that offers its guests advanced communication and amenity services they require when traveling.

AT&T, which has enjoyed a strategic technology relationship with Intercontinental Hotels Group (IHG) for nearly 50-years, is providing Voice over Internet Protocol (VoIP) and property-wide Wi-Fi coverage at the new prototype Holiday Inn Gwinnett Center in Duluth, Ga., north of Atlanta.

"We're delighted to offer guests the level of technology amenities and services that not only enhance the Holiday Inn experience but also address their increased need to connect to their business and personal environments while on the road," said Gustaaf Schrils, vice president of technology for Intercontinental Hotels Group. "AT&T's networking technology neatly supports our understanding of guests' needs, and allows us to take exciting steps into the future."

The 143-room prototype hotel, which opened January 12th, is the first of 25 Holiday Inn hotels slated for construction during the next three years. In each of these properties, IHG will offer advanced technology combined with the comfort for which Holiday Inn is renown.

The hotel features a state-of-the-art AT&T VoIP telephone system, which converts voice into packets of data that travel across the Internet or a private network (just like an e-mail) and then reassembles these packets at their destination into their original voice format. This system allows Holiday Inn to support its voice and data traffic through a single, easy-to-manage network and makes it possible to easily offer guests exciting new telecommunications capabilities in the future.

The Wi-Fi network created for Holiday Inn by AT&T serves as an umbrella of high-speed Internet access that covers the entire hotel premises. Holiday Inn guests who have wireless communication technology on their computers can simply turn-on their computer anywhere in the hotel and enjoy free, high-speed Internet access. Additionally, all guestrooms will have wired hi-speed Internet access.

This prototype model hotel is designed to test new technology while maintaining the heritage of Holiday Inn. The room décor and Holiday Inn "Great Sign" received a modernized makeover specifically designed for the Atlanta prototype. The new room décor uses simple, organic patterns of earthy colors like eggplant. New furniture additions include a custom-designed armoire with a breakaway-door-and-panel design, which allows guests to view the TV from anywhere in the room.

Holiday Inn Hotels and Resorts

With more than 1,500 hotels worldwide, Holiday Inn Hotels and Resorts is the most widely recognized lodging brand in the world. Holiday Inn Hotels and Resorts provides the services that business travelers need, while also offering a comfortable atmosphere where all people can relax and enjoy amenities such as restaurants and room service, swimming pools, fitness centers and comfortable lounges. The casual atmosphere and amenities such as meeting and on-site business facilities, KidSuites rooms, and the Kids Eat Free program demonstrate the long-standing commitment of Holiday Inn Hotels and Resorts to providing what matters most to travelers.

Expanding the Future of Holiday Inn Nationwide

The Holiday Inn Gwinnett Center is located in Duluth, Ga., in Gwinnett County just north of Atlanta. Smaller, more cost-effective to build and more efficient to maintain than its predecessor Holiday Inn properties, the prototype boasts 143 rooms and 80,000 square feet of which 70 percent is dedicated to revenue generation. Twenty-five prototype properties will open across the country over the next two years, including those currently being produced in Tallahassee, Fla., and College Station and Amarillo, Texas.

About AT&T

For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.

AT&T 'Safe Harbor'

The foregoing contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.


Aaron Bedy
(404) 810-7157

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