Backed by one of the world�s largest lodging franchisors with a minority investment by Baron Capital, the prominent New York-based investment advisor, on behalf of its investment advisory clients, Stay Connect is the first hospitality technology company of its kind to be launched by a hotel corporation.  This company is also in the forefront of offering Internet access to all types of travelers, even those who travel without laptops.  Stay Connect plans to install approximately 50,000 hotel rooms with high-speed Internet access for laptops by the end of 2001; approximately thirty percent of those rooms will be equipped with PCs.

�When Choice first evaluated the soaring demand for Internet connectivity from guests, we recognized a tremendous business opportunity,� said Charles A. Ledsinger, Jr., president and chief executive officer of Choice.  �Choice has built a solid reputation for staying a step ahead of industry demands and trends.  Stay Connect is yet another example of our leadership.�

Stay Connect:  Providing Revenue-Enhancing Solutions

The Stay Connect service is a low-risk, revenue-enhancing, turn-key Internet solution with a strong value proposition for hotel owners.  �Our research shows that the Internet will be a major factor in the lodging industry in the next several years,� said Daniel Rothfeld, Choice senior vice president of e-commerce and emerging business opportunities. �We believe that Stay Connect offers the industry the right solution at the right time.�

Stay Connect�s solution requires no up front investment or capital investment.  In addition, the company provides all the required support services, including non-disruptive installation, a 24x7 toll-free help line for guests and hotel staff and marketing support.

David Goldberg, vice president, operations of Stay Connect, said, �Stay Connect has developed a win/win solution for the hospitality industry.  Providing in-room Internet computers will drive more customers to the property.  And our solution allows the hotel to keep rate premiums that our research shows guests will pay for computer-equipped rooms. Additionally, we allow the staff to focus on running the hotel because we provide and manage all of the in-room Internet services.�

Stay Connect:  Helping Put More Heads in Beds

Hotel owners benefit from the Stay Connect service not only because they will gain a competitive advantage in the industry, but also because research shows it will:
Increase room rate.  Stay Connect�s research indicates that, with proper marketing, rooms equipped with in-room Internet computers can sell for an additional $5-$10 per night.

Increase room occupancy.  Industry research reveals in-room computers are highly valued by guests.  According to a recent survey reported in Hotel On-line (June 1999), 66% of hotel guests would choose one hotel over the other for in-room technology.
Increase revenues.  Hotel owners pay a single low monthly fee for all of Stay Connect�s services, including installation, in-room computers and a 24x7 help desk.   In return, they receive all revenue generated through the upselling of rooms with computers and a percentage of all revenues from use of high-speed Internet access in guest rooms.  Additionally, Stay Connect will help hotel owners develop systems to upsell rooms with computers through reservation centers and marketing strategies.

Stay Connect:  Partnering with Premier Companies

Stay Connect has formed strategic partnerships with Darwin Networks, the leading broadband solutions company, Compaq Computer Corporation, the largest supplier of computing systems in the world, and Compaq Services, a premier provider of installation and maintenance services.

�Stay Connect�s partnerships with Darwin Networks and Compaq allow us to offer the highest quality of guest services to hotel owners,� said Stay Connect�s Goldberg.

Darwin will provide the complete high-speed network and telecommunications infrastructure.  Compaq is equipping hotel rooms using the Stay Connect service with the iPAQ Desktop PC, a computer that gives customers easy access to the full content of the Internet and business information, and Compaq Services is providing installation and other support services.

�We�re proud to be selected by Stay Connect as their technology solutions partner for equipping hotels across the U.S. with iPAQ desktop PCs,� said Mike Winkler, Senior Vice President and Group General Manager, Commercial PC Group, Compaq Computer Corporation.  �Because of its simple design and small form factor, the iPAQ is the ideal platform for in-room computing, providing guests with anywhere-access to business applications, email and the Internet.  As evidence of our goal to take everything to the Internet, we are pleased to provide Program Management Services and iPAQ desktop PCs to assist Stay Connect in their new venture to supply every customer with this high quality, reliable and valuable amenity.�

Headquartered in Silver Spring, MD, Stay Connect is an independent operating company owned  by Choice Hotels International with a minority investment by Baron Capital on behalf of its investment advisory clients.  Stay Connect will equip guest rooms in hotels nationwide with state-of-the-art in-room computers and high-speed Internet access for laptops. The company plans to install approximately 50,000 hotel rooms with the Stay Connect service by the end of 2001. 

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities law.