The system, expected to be completed by year-end, will enable Prime to consolidate its brands' data, presenting standardization across all booking channels including voice reservations originating at the company's new call center, Web bookings, seamless Global Distribution Systems (GDSs) and property-originated reservations. By using HDS' xenon(TM) CRS advanced reservations technology, Prime expects its properties to further improve customer relationship management (CRM) initiatives, while more effectively managing room rates and inventories to increase revenues and better manage reservation processes.

As part of the agreement, HDS will interface with WizCom to provide AmeriSuites(R) and Wellesley Inns & Suites(R) with full seamless GDS connectivity. Additionally, xenon(TM) CRS Enterprise Reservation System will give Prime Hospitality full CRS capabilities, an integrated reservations portal for the Internet, and a powerful XML-based bi-directional interface with the existing MSI Property Management System (PMS). This new enterprise solution offers Prime a source-of-business-based sales process and will completely synchronize reservations (both individual and group) with true single inventory between properties and central operations. In addition to a direct interface to Prime Rewards(R), Prime's customer loyalty program, supplementary tools will permit Prime to synchronize profile information across the enterprise, enabling new CRM initiatives.

DJ Vallauri, Vice President of E-Commerce for Prime Hospitality Corp., said, "After extensive evaluation, we selected xenon(TM) CRS as our enterprise reservations platform. The software immediately gives us unparalleled marketing and management abilities. Dynamic packaging features and liberal use of XML technology in interfaces and Web tools is a quantum leap forward. xenon(TM) CRS enables us to create strategic business rules that affect our preferred accounts within each distribution channel independently, giving us tremendous ability to enhance customer recognition and undertake strategic CRM and revenue management initiatives."

About Hotel Data Systems (HDS):

HDS, headquartered in Westport, Connecticut, is a software firm dedicated to the development of enterprise level reservation solutions customized for hotel central reservation call centers worldwide. Hotel Data Systems, Inc. can be located on the Internet at www.hoteldata.com.

About Prime Hospitality Corp.:

Prime Hospitality Corp.(R), one of the nation's premier lodging companies, owns, manages, develops and franchises 240 hotels throughout the United States. Prime owns and operates two proprietary brands, AmeriSuites(R) (all-suites) and Wellesley Inns & Suites(R) (limited-service). Also within Prime's portfolio are owned and/or managed hotels operated under franchise agreements with national hotel chains including Hilton, Radisson, Sheraton, Holiday Inn and Ramada. Prime Hospitality Corp. is located on the Internet at www.primehospitality.com.