Canadian Pacific Hotels purchased a non-exclusive license to utilize the ResBook CRS and operate this CRS today, while Pegasus Systems, Inc. of Dallas, contracted with Intermezzo for the development of somewhat unrelated software. Intermezzo expended an estimated $3.5 million CAD on the development of these intellectual property assets and VIP has acquired the exclusive rights to utilize, develop, market and/or resell these intellectual property assets at its sole discretion. Those customers of Intermezzo that presently have a non-exclusive right to the intellectual property will maintain their contractual rights to the software.

VIP's president, Kelly Blake stated, "VIP has made a move to better secure its position through ownership of key technological assets. Not only have we acquired a system that will provide an integrated link to our customers but, we now own an exceedingly valuable state-of-the-art central reservation system and web PMS product, which offer potential cost savings and more importantly, significant revenue opportunity."

The Intermezzo intellectual property includes a nearly completed connection to Pegasus' TravelWeb (www.travelweb.com) Internet site, which will expedite VIP's listing on this premier travel channel. Additionally, through Pegasus' relationship with Preview Travel (www.previewtravel.com) VIP will gain access to this significant source of business.

Central reservation systems on the market today command between $200,000 to $2,000,000 in one-time license fees and fifty to hundreds of thousands in annual maintenance fees. Property management systems sell for one-time license fees of between $20,000 and $100,000 and command thousands in annual support fees. Bringing the reservation delivery system in-house will eliminate significant annual transaction expenses called for in the former Intermezzo service agreement. The revenue opportunities associated with ResBook and the web PMS product could exceed several million dollars annually. VIP has received numerous inquiries from interested parties with respect to ResBook and the web PMS applications. The company will be carefully evaluating its strategic opportunities over the next few months with respect to these products.

VIP International Corporation provides Internet and travel agent Global Distribution System marketing and reservation services to more than 3,000 hotel properties and car rental locations in 66 countries. The company has been serving the travel industry since 1979, and is the wholly owned subsidiary of publicly traded HARS Systems, Inc. - HSS - Vancouver Stock Exchange.

Providing Internet & GDS Electronic Distribution and Marketing Services to more than 3,000 hotel and car rental companies worldwide.