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2 November 1998

3 new global partnership deals set Quadriga on course for market leadership

Quadriga, previously Thorn, announced today that it has signed new partnership agreements with Philips, Bang & Olufsen and Otrum Electronics to support its quest for global leadership in the delivery of guest room interactive technology. The new partnerships are fundamental to the launch of Quadriga's new strategy, new worldwide brand identity and its new portfolio of fully upgradeable products and services, also announced today. To this end, each partner has been specifically selected because of its global capability, market leadership and expertise in the hotel sector.

Quadriga CEO, Arne Gjers, states: "Our goal is clear. We want to be the world leader in the guest room technology market. Having already delivered in-room information, entertainment and added value services to over 170,000 hotel rooms across the globe, we are without doubt in sight of reaching that goal. However, we also recognise that the vendors we choose to partner with will be fundamental to our future success."

Enhanced expertise offers customers more flexibility and global reach

Bang & Olufsen - Entry into the hotel market represents a new strategic move for Bang & Olufsen following a strategy of identifying new business to business channels and partners. The choice of Quadriga as a partner is an endorsement of Bang & Olufsen's firm belief in the company's existing market position and future potential.

Renowned for its top of the range entertainment systems, the addition of Bang & Olufsen to Quadriga's portfolio will enable the latter to provide hotels with TVs or audio products suitable for special rooms and suites that can still carry the breadth of guest room software services they need. Moreover, as the partnership with Bang & Olufsen is an exclusive agreement, Quadriga has a very clear high-end market advantage over its competitors.

Philips - Quadriga's relationship with Philips will offer hotels of all types the size of interactive TV that best suits their needs. 17", 21" and 25" sets will all be available by October 1998, with 28" sets following in 1999. As a key global player, Philips has a clear commitment to the development of guest room equipment for the hotel sector and has already worked in close partnership with Quadriga to deliver On Card TV, a low cost Pay TV solution launched in May 1998. The company's global reach, market expertise and high quality products will offer all Quadriga customers a more flexible approach to both their national and international guest room interactive technology needs.

New upgradeable software portfolio gives Quadriga customers better ROI

Otrum Electronics - Quadriga's new partnership with Otrum Electronics will provide customers with a new, broader portfolio of fully upgradeable software services. Otrum has experienced huge success in the last 6 years and is now the clear European leader in building software and services for the hotel market. The developer has installed over 200,000 rooms worldwide with guest pay services such as Video On Demand, in-room games, Internet access and other innovative inter-active applications such as back office management features for the hotel. Its close working relationship with Quadriga will ensure greater flexibility and more responsiveness to market needs as it brings both companies closer to the customer.

Arne Gjers continues: "The partners that we have chosen will offer Quadriga customers more flexibility than ever before. Philips has a proven global capability, a high quality TV portfolio and a wealth of experience in the hotel market. Adding Bang & Olufsen to our portfolio enables us to provide an offering for luxury rooms and suites that other vendors simply cannot offer. And Otrum is the leading software development player in its field. To my knowledge, no other supplier can match the global breadth and service choice that these partners add to our new proposition."

New relationships build on Quadriga's existing partnerships

The new partners will join Quadriga's existing relationship with automated minibar specialist, AMS, which already delivers increased efficiency and profitability to over 60,000 hotel rooms worldwide. By integrating with Quadriga's interactive system, AMS' minibar products can communicate over the hotel's main TV network and provide benefits for guests and hoteliers alike including powerful stock report generators for the hotel managers and instant, easy-to-view billing for the guests.

Also within Quadriga's existing partnership portfolio is Fourth Communications Network, one of the largest on-line providers of business information on the Internet. Fourth Communications

Network's operations have historically been focused on the design and delivery of interactive hotel information using Internet access, and its service offering therefore represents an ideal additional service for Quadriga's interactive solution. In fact, as a result of the partnership over 23,000 rooms in 16 countries can now take advantage of value-added service options such as, electronic mail, electronic business and electronic commerce, all of which the guest controls via an infra-red keyboard. A customised home page gives the hotel the opportunity to promote its own products and services, in addition to the revenue generated from guest usage.

About Bang & Olufsen

Bang and Olufsen is a leading brand within high-end audio/video entertainment systems. Founded in 1925, the company's basic idea remains the same today: 'Technology in itself has no significance. Its what it does to people and how it fits into their way of living that concerns Bang & Olufsen.'

Bang & Olufsen's products are sold in more than 40 countries throughout the world. The company also has an extensive dealer network of approximately 2,500 dealers of which 375 are purely Bang & Olufsen shops. The company's 1997/98 turnover was DKK 3.1 billion and it employees 2,500 people - the majority of these are based in Denmark where research and development, production and administration takes place.

About Philips

Philips is among the world's largest suppliers of electronic equipment, both to the consumer and professional market. With its dedicated structure, Philips offers in-room entertainment hardware for the hospitality sector and it is one of the market leaders in this arena. Philips' hotel TV range consists of a series of product lines with progressively higher specifications and with a wide choice of features designed specifically to fulfil the requirements of any hotel. Core applications include, Pay TV and Smart Card based solutions.

About Otrum

Otrum Electronics ASA is the leading European supplier of interactive TV technologies for hotels. The software was launched in 1992 and since then it has been installed in more 200,000 rooms throughout Europe and parts of the Middle East, Africa and Asia Pacific. Founded in 1985 Otrum Electronics ASA is listed on the Oslo stock exchange.

About Automatic Minibar Systems (AMS)

AMS was formed in 1996 as a joint venture between Minibar AG and Electrolux, to develop, produce and distribute automatic minibars. AMS offers two automatic minibar systems: the larger RoboBar version which can hold up to one hundred different products, and the more compact AutoClassic, the most advanced minibar on the market today. Both products communicate over the hotel's main TV network and provide benefits for guests and hoteliers alike including powerful report generators for hotel managers and instant, easy-to-view billing for guests.

About Fourth Communications Network

Fourth Communications Network is a leading provider of interactive multimedia systems to the hotel industry and its guests in Europe, the Middle East and Africa. Founded in 1992, the company focuses on the design and delivery of interactive hotel information with Internet access. Its Internet product has been installed in 73 hotels and 23,000 rooms in Europe to date.

RELATED LINKS

Philips Projects BV

Fourth Communications Network Inc.

Electrolux Siegen GmbH

All About Quadriga @ Hospitality Net

CONTACT

Liz Andrews or Gcmma Truman at Abacus
Phone: +44 (0)171 580 8852
Fax: +44 (0)171 580 5035
Email: gemma.truman@abacuscomms.co.uk

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