| Atlanta, GA July 26, 2001 -Radiant Systems, Inc. (NASDAQ: RADS) today
announced its purchase of assets from HotelTools, Inc., an emerging provider
of enterprise software solutions for the hospitality industry.
The transaction, which included the purchase of the majority of HotelTools
assets, closed on July 26, 2001. HotelTools, Inc. is a private entity with
headquarters in Atlanta, GA.
HotelTools' product suite includes solutions
to centralize all aspects of
multi-property hotel operations, including hotel management, rate management,
reservations and procurement under either an Application Service Provider
(ASP) or traditional license business model. The Internet-native
applications and services facilitate both top and bottom line improvement
for hotel owners and operators by enabling real time reporting and management
from any computer connected to the Internet. The architecture drives
improvement across the enterprise in guest satisfaction and yield management,
while eliminating labor intensive processes such as commission processing,
night audits and re-keying of accounting data.
"This acquisition is a key strategic move for Radiant to achieve its
goal of delivering intelligent technology to industries that serve customers
through multiple distributed sites," commented Erez Goren, CEO of Radiant
Systems. Goren continues, "With this acquisition, Radiant has a complete
suite of applications to manage critical operations functions in the hotel
industry. The applications will reside on one management platform
and include property management systems, central reservation systems, supply
chain management, workforce management, point-of-sale and consolidated
reporting."
Seth Christian, CEO for HotelTools, Inc., stated, "HotelTools will benefit
from Radiant's experience in providing best of breed applications to the
industries they serve. Radiant will add financial stability, infrastructure
and a proven track record of innovation to support the HotelTools product
in the industry."
Radiant Systems, Inc. (NASDAQ: RADS) is a leader in delivering innovative
technology solutions to businesses that serve the consumer.
|
Suburban Lodges Terminates Relationship
with HotelTools, Inc.
| ATLANTA - July 27, 2001-- Suburban Lodges of America,
Inc. today announced that, in connection with the recently announced acquisition
by Radiant Systems, Inc. of certain of the assets of HotelTools, Inc.,
the Company has received a partial repayment of its secured loans to HotelTools
and will be making no further loans to HotelTools.
In connection with this transaction, (1) the Company released
its security interest in the assets acquired from HotelTools by Radiant
in exchange for a partial payment on its secured loans to HotelTools, (2)
the Company's stock warrants in HotelTools were cancelled and all stock
options that have been issued by HotelTools were rendered valueless, (3)
Radiant entered into a license agreement with the Company to provide software
services to company-owned Suburban Lodge hotels and Suburban Lodge franchisees
for a period of two years, (4) the Company received net cash proceeds of
$168,000, and (5) Radiant agreed to satisfy or assume HotelTools' obligations
under an equipment-financing lease and to obtain the release of the Company
from its guaranty of the lease obligations. As of July 27, 2001, the net
present value of the remaining payments under the HotelTools equipment-financing
lease approximated $1.0 million.
As a consequence of these transactions, the Company has
written off the remaining balance of its loans to HotelTools. The Company
has recorded an after-tax charge of approximately $7.6 million in the second
quarter of 2001 in connection with these events. The Company expects to
report its second quarter operating results on August 2, 2001.
Commenting on the transaction, David Krischer, CEO of
Suburban Lodges, said, ``I regret that the capital environment for technology
companies has been so poor these past twelve months. That has resulted
in HotelTools being reliant solely on continued loans from Suburban Lodges,
which in turn, we believe, contributed to doubts by HotelTools' potential
customers as to its ability to deliver services over the long term. We
are pleased that the transaction between HotelTools and Radiant Systems
provides a solution to this issue, eliminates the need for Suburban to
make additional loans to HotelTools, and maintains the software for the
use of our company owned hotels and our franchisees.'' |
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HotelTools, Inc. has developed the first Internet Enterprise Software for
the hospitality industry. As the lodging industry's first ASP truly architected
for the future, HotelTools leverages the Internet as a cost-effective communications
network, giving hoteliers capabilities previously unavailable to most of
the industry.
Certain statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995.
Founded in 1985, Radiant Systems, Inc.® provides enterprise-wide
technology solutions to retailers around the world. The Company offers
fully integrated retail automation solutions including point of sale systems,
consumer-activated ordering systems, and back office and headquarter-based
management systems.
Radiant's products enable retailers to interact electronically
with their site, vendors and credit networks. The Company offers systems
planning, design and implementation services that tailor the automaton
solution to each retailer's specifications.
Products are found in retail outlets around the globe,
and are depended on by such industry leaders as Chick-fil-A, Inc., Conoco,
Inc., Tricon Global Restaurants, Inc., Speedway/Starvin' Marvin, and AMC
Entertainment, Inc. To poise the company for the new millennium, it was
renamed it as Radiant Systems, Inc.® shortly before its Initial Public
Offering in 1997. |
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