Hilton Hotels Accommodates Travelers With New Life-Size Conferencing

Virtual Meetings Are Now A Reality for Distant Clients,

Families or Friends Who May Be Thousands of Miles Apart

NEW YORK, N.Y., June 5, 1996 -- Hilton Hotels Corporation, TelePort Corporation and IBM today announced that they have brought futuristic group videoconferencing to the hospitality industry, permitting users to experience life-size, virtual personal contact -- as if they are in the same room -- while in remote locations.

The first publicly accessible virtual conferencing TeleSuite® systems were unveiled today at two Hilton properties -- The Waldorf=Astoria in New York City and The Capital Hilton in Washington, D.C. Hilton intends to expand the TeleSuite® systems in other Hilton hotels across the U.S.

"If we can't bring people together physically for a special occasion or meeting, we now have a way to bring them together virtually, enabling the participants who are clear across the country from each other to feel as if they are in the same room," said Robert E. Dirks, senior vice president - marketing for Hilton Hotels Corporation. "With this exciting TeleSuite® network, Hilton Hotels is on the cutting edge of offering high-tech communications solutions to its guests in a relaxed and confortable environment."

TeleSuite® systems allow users in distant locations to experience life-size, virtual personal contact. During a TeleSuite conference, all participants appear simultaneously on screen, life-size without any delay and seemingly just across the table from each other. Through the use of TelePort's patent-pending video mirror concept, the suites provide a natural setting that gives users the perception of being together in one location. Participants communicate in fully synchronized audio and video, with each person making "virtual eye contact" with the image of others on screen. The absence of visible wires, microphones, speakers or cameras ensures a relaxed and pleasant meeting environment.

In addition to virtual conferencing, the suites can accommodate food service, allowing users to enjoy Hilton's famous food and beverage service in a unique "teledining" experience. The suites are perfect for executive "power" breakfasts, lunches and dinners. Families and friends who are unable to get together in a single location will also find teledining an affordable solution for special occasions like birthday parties and anniversaries.

The TeleSuite system is the result of a two-year development effort by TelePort, IBM and other partners. The IBM Global Network will provide telecommunications services for TeleSuite installations worldwide for selected Hilton hotels in the U.S. IBM will also market the TeleSuite system globally.

"IBM was an early supporter of the TeleSuite system," said John Whiteside, general manager, IBM Global Network. "We are pleased that our ability to offer integrated data, voice and video globally will permit this unique multimedia application to be enjoyed by businesses and consumers throughout the U.S. and later worldwide."

"We believe the TeleSuite concept fulfills the promise of video communications by bridging the reality gap," said David Allen, TelePort's CEO. "The suites combine real life and virtual reality to redefine videoconferencing."

The rollout of the TeleSuite system will include both public and private installations. Public TeleSuite systems like those introduced today will be located in major metropolitan markets across the United States through TelePort's franchise program. Organizations that want to have their own private TeleSuite systems will be able to purchase them through the cooperative marketing agreement between the IBM Travel and Transportation Industry Solution Unit and TelePort.

TelePort and IBM plan to introduce the TeleSuite product in international markets beginning in 1997.

The TeleSuite system incorporates technology from several vendors, including Compression Labs, Inc., the company responsible for the high-quality coder/decoder (codecs) system that provides multimedia transmission over the IBM Global Network, and NEC, which produces the system's monitors and screen converters and provides other system support.

TelePort Corporation, based in Englewood, Ohio, was founded by Allen and Herold Williams, president. In 1979, Allen and Williams co-founded Allen-Williams Corporation, a hotel and resort development company. More recently, Allen co-founded a multimedia company, New Leaf Entertainment, with business partners Blockbuster and IBM. TelePort's products are derived from a unique blend of the founder's experiences in hospitality, manufacturing and technology.

The IBM Global Network is one of the world's largest providers of integrated data, voice and video services, serving more customers (28,000) in more cities (850) and more countries (100) than any other network provider. The IBM Global Network is provided in the United States by Advantis. Information on the IBM Global Network is available at .

IBM has provided technology products and services to the travel industry for more than 30 years. Many segments of this growing industry -- hospitality and lodging, airlines, travel agents, tour operators, gaming and car rentals -- are quickly incorporating technology into business operations. IBM's Travel and Transportation Industry Solutions Unit is one of 13 industry-specific organizations offering a range of open and integrated industry solutions, consulting services, information technology, and project design, implementation and management to customers. More information about IBM's Worldwide Travel and Transportation Industry Unit can be located on the Internet at .

Hilton Hotels Corporation is recognized internationally as the preeminent gaming and hospitality company. The company develops, owns, manages and franchises hotel-casinos, resorts, vacation ownership and hotel programs. Hilton Hotels' Internet address is www.hilton.com.

® -- TeleSuite is a registered trademark of TelePort Corporation.