Knights Franchise Systems, Inc. Announces Marketing Initiatives To Propel Chains Growth For 2000

(Monday, October 18, 1999) - At the 1999 Knights Inn annual conference, Vinay Patel, Knights vice president of marketing, stressed that strong and creative marketing programs will be a critical element in the brands quest to maintain a dominant position in the budget lodging segment. The conference also marked the unveiling of a number of initiatives developed to take Knights from a chain that has carved its niche in the budget lodging segment, to an innovative brand that has a fun, unique and effective way of communicating with its target markets.

We are dedicated to using all of our creative resources to develop promotional items and campaigns that build enthusiasm for our target audiences and raise brand awareness, said Patel.

Patel has led the chains efforts to energize local, regional and national marketing plans. He said that in an effort to stay ahead of changing industry trends and better serve guests, Knights has developed a clear, targeted marketing strategy by identifying its target markets and developing innovative programs to reach these niches. The brand will continue to focus on senior and budget-minded travelers, truck drivers and construction workers as its key markets.

Knights key announcement centered on the brands strides in the world of television. Patel unveiled the brands first professional television commercials, as well as plans for national cable advertising. The thirty-second spots were featured during the Good Morning America show at conference time and also ran for three weeks in September on the Fox Family Channel during primetime, late night and weekend programming across the country. The Knights Inn spots aired during successful feature films including Whats Eating Gilbert Grape? and Karate Kid II, reaching an estimated 10 million viewers. The spots are also being made available to Knights franchisees and can be edited by any Knights Inn hotel for use on local channels, with a customized ending directing viewers to the property.

This is one of the most exciting announcements in the marketing history of the chain, said Patel. Our marketing efforts focus on increasing brand awareness, especially at the national level, and meeting our franchisee and guest expectations, said Patel. We feel these commercials are successful at meeting these objectives.

We chose Fox Family Channel for our television debut, because its market parallels ours: budget-conscious, vacationing families who tend to travel by car, said Patel. Like Knights, Fox Family is very family-oriented, emphasizes family fun, safety and education and also ranks highly with travel-oriented travelers.

The brand is currently investigating opportunities with both Country Music Television (CMT) and The Nashville Network (TNN), both which have viewer demographics that match the Knights Inn audience.

The chain also plans to continue its explosive print reach, having more than doubled the national publications in which it has been advertising during the last two years. In AAA Tourbooks alone, the brands circulation has increased to over 31 million. Knights will also continue its advertising presence in a variety of other publications including Arthur Frommers Budget Travel Magazine, Mature Outlook, Leisure World, as well as trucking publications that deliver the brands messages to this valuable segment. Additionally, Knights will continue appearing in copies of the Rand McNally Road Atlas.

Another tremendous influence on Knights Inns marketing efforts has been the brand website, www.knightsinn.com. Total page views for the site were up 71% from last year. More importantly, net room nights booked in 1999 saw a 209% increase, while net revenue increased 234%. The brand also plans on using the site to target a greater share of the business traveler market, in addition to investigating advertising opportunities with major national newspapers and broadcast media.

In a continued effort to strengthen brand awareness and brand loyalty, Knights has also partnered with AT&T to undertake an exciting sweepstakes promotion for guests. The winner of the sweepstakes will receive two tickets to a NASCAR race in 2000, as well as pit passes, hotel accommodations, airfare, $1,000 in spending money and other perks. Additionally, five hotel owners will receive $1,000 each in co-op marketing dollars for their participation. No purchase is necessary to participate.

At the conference Patel displayed the chains mascot, Sir Knight, a 21st century Superhero knight in armor, who is featured in all advertising, direct marketing materials and the brands latest copy of The Adventures of Sir Knight comic and activity book series. The second issue of the book is available at all Knights Inn locations starting this month.

Marketing to families has always been a critical part of the brands success, said Patel. Providing the family-vacationing visitor with value-added benefits has been a big part of our marketing efforts and has worked very well for us.

A key component of Knights marketing efforts will continue to be the brands franchise tag line, Every Knight. Just Right. The tagline, which has played a vital role in representing the brand in advertising, marketing and public relations efforts, tells consumers that Knights Inn is a hotel chain they can depend on for clean, comfortable, convenient accommodations and a great nights rest at true budget rates. The tagline also reflects Knights guest service culture.

Knights Franchise Systems, Inc., a budget lodging chain of more than 235 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

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