Knights Prepares For 2000 With New Leader, New Technology And Positive Outlook

More Than 200 Conference Attendees Gather To Set The Course For Brand Success

LAS VEGAS, NV (Monday, October 18, 1999) - Bruce V. Bloom, new president and CEO of Knights Franchise Systems, Inc., stressed to an assembly of Knights Inn owners and general managers at their annual conference, the importance of teamwork in the game plan for the chains success. The Knights Inn franchise community gathered to celebrate its successes, recognize brand achievements, discuss future plans and unveil Knights Inn marketing, training, sales, reservations and operations initiatives.

Knights is a fantastic brand and I am proud to be a part of its ongoing growth, said Bloom. Over the next few months, I am committed to visiting as many Knights Inn properties as possible, to learn from our franchisees, as well as our guests and other key stakeholders, the opportunities and issues we face as a system. It is only with this information that our team will develop the plan which will guide the entire Knights Inn system into the year 2000 and beyond.

Bloom, who joined the Knights Inn family in September, has already taken to the road, visiting the people that make the brand what it is - the franchisees. Following his first property visit with franchisee Gary Prema at the Antioch, TN Knights Inn, Bloom will continue to travel throughout the country maintaining an open dialogue with franchisees. Bloom strongly feels that lessons learned from the franchise community will shape the vision of the brands future.

Information and feedback like this is instrumental to the future success of the brand, says Bloom. Communication and dedication to the greater cause will help to create a better Knights for us all.

Bloom and other Knights corporate executives addressed franchisees with a vision of a future filled with opportunity, evolving new growth strategies, new concepts and program enhancements to prepare the brand for the new millennium.

Standing before an audience of more than 200 Knights Inn franchise owners, managers and suppliers in attendance, Bloom emphasized the importance of technology, announcing the installation of high-speed Internet access for all of the chains more than 235 properties.

We are the only brand in the budget segment that will provide this valuable service, said Bloom. Recent surveys show a great demand for high-speed Internet access by hotel guests. With the increasing number of laptop-toting travelers and the explosive growth in Internet use among the general public, this will be a great service enhancement for our guests.

Bloom also reaffirmed that brand growth will be a major focus for Knights in the upcoming year. Knights has committed to an aggressive growth strategy that encompasses several initiatives, including a strong push towards new construction, stronger support and emphasis on franchise sales efforts, as well as broadening opportunities to various interest groups that are not part of the brands current mix.

Im excited about what the future holds for Knights, particularly the development potential of the brand, said Bloom. With nearly 240 properties, 40 sites under development and 133 applications pending, we are embarking on both a new millennium and a new, more aggressive phase for our brand. It will be a win-win-win for the brand, franchisee and the guest.

Knights has also signed its first international master franchise agreement with AFM Hospitality of Toronto for the development of Knights Inn hotels in Canada. The agreement is expected to bring more than 100 properties into the Knights Inn franchise over the next five years.

This is a milestone for the brand that will set the stage for further international development -- which is a major component to continued future growth of the chain, said Vinay Patel, vice president of marketing for Knights Franchise Systems, Inc.

During his presentation, Bloom and other Knights Inn company officials emphasized the brands customer service culture and franchise tag line, Every Knight. Just Right. The culture, designed to make Ôevery night, just right for each guest, refers to clean, comfortable rooms, friendly greetings, attractive curb appeal, and exceeding guest expectations with an outstanding level of service unheard of in budget lodging.

Knights Franchise Systems, Inc., a budget lodging chain for more than 230 franchised properties in the United States and Canada, is a subsidiary of Cendant Corporation (NYSE:CD). For reservations or further information, the toll-free number is 1-800-843-5644 (1-800-THE KNIGHTS).

CONTACT: Evy Apostolatos (973) 496-8420 evy.apostolatos@cendant.com

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