The agreement also calls for the installation of a fully integrated Central Information System (CIS) which, together with an interface to Candlewood�s back office accounting software, will provide Candlewood Suites with streamlined financial and operational management.

The LodgingTouch PMS provides the hospitality industry with a fully integrated, scaleable property management system that facilitates centralization, consolidation and easily accessible data. Running on the Microsoft® Windows NT® operating environment, it is a true 32-bit, ODBC compliant client/server solution.

The open architecture design allows for customization of the application and the ease of adding modular interfaces make it a long-lasting investment for hotel chains as well as single properties of all types and sizes.

MAI CEO W. Brian Kretzmer commented, �Our existing relationship with Candlewood is further strengthened by this agreement. We appreciate the continuing confidence of Candlewood in both our company and our products and look forward to a long and mutually beneficial relationship. 

�The signing of this agreement following our profitable second quarter provides the company with even greater momentum for the remainder of 2000 and beyond.�
Candlewood chose LodgingTouch for its enterprise-wide integration capability and HIS�s ability to quickly develop the required interfaces for integration. Another deciding factor was HIS� proven ability to customize the software, so that Candlewood may further enhance its specialized guest services as needed.

�HIS� customer oriented culture and development expertise are a good fit for Candlewood,� said John Angle, director of information technology for Candlewood. �The user-friendly nature of the LodgingTouch PMS and the free flow of information provided by our new CIS will enhance our simple but unique operating platform.�

About Candlewood Suites
Candlewood Hotel Co. owns, operates and franchises Candlewood Suites, which targets mid-market business travelers and others on short or long-term stays. Chairman and CEO Jack DeBoer, who founded Residence Inn and co-founded Summerfield Suites in the 1970s and 1980s, founded Candlewood Suites in 1995 and Cambridge Suites in 1998.

About Hotel Information Systems
Hotel Information Systems, a division of MAI Systems Corp., is a worldwide provider of total information systems to the hospitality industry. With headquarters in Irvine, Hotel Information Systems has offices in Canada, the United Kingdom, Hong Kong, Singapore and Mexico as well as a worldwide distributor network.

Certain statements in this news release constitute �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995.