Guest Supply to Launch guestsupply.com -- the Lodging Industry's Most Comprehensive Online Purchasing System

Slated to debut in December of 2000, guestsupply.com will provide quick and efficient one-stop shopping over the Internet, allowing customers to purchase from Guest Supply, and selected product categories from other vendors in the future as well. Guest Supply made the announcement at this week's International Hotel, Motel & Restaurant (IH/M&R) Show at the Jacob Javits Convention Center in New York, where visitors to the company's booth were provided with hands-on demonstrations of the soon to be launched Web site.

"We are extremely excited about the launch of guestsupply.com, and the efficiencies, savings and other benefits that the site will deliver to both our customers and to Guest Supply," said Clifford Stanley, CEO of Guest Supply, Inc. "As the only vertically integrated company in the lodging supply industry, we are unique in our ability to serve as a 'one-stop shopping' resource for all of our customers' needs. With guestsupply.com, we will add the savings and convenience of e-commerce to the extensive network of products, trucks, forecasting systems, warehouses and sales and customer service people that are already in place. This combination of 'clicks and bricks' will help to position Guest to become the leader in the delivery of online procurement solutions to the lodging industry."

Guestsupply.com will provide an innovative e-procurement solution that allows customers to make real-time purchases over a secure Internet connection and to automate a number of key business processes such as approvals, order tracking, accounting and inventory management.

The site can be customized for clients incorporating their name and the products they want their properties to purchase. It will assist management companies in controlling purchasing and generate usage reports by product and property. Independent hotels will be able to search through Guest Supply's comprehensive line of products and make purchasing decisions that meet their individual needs. This new automated procurement system will benefit both Guest Supply and its customers by reducing costs and improving standards and controls.

"Guest Supply's strength has always been the ability to deliver the most comprehensive range of top quality products and services quickly and efficiently to our customers," said Stanley. "guestsupply.com will serve as another powerful tool for us in providing the best possible service to our clients."

Guest Supply, Inc. (the "Company") is a leading supplier of housekeeping and other operating supplies to the lodging industry and a premier manufacturer of health and beauty aid products for consumer products companies and retailers. Guest has achieved leading positions in its markets by focusing on excelling at design, product development, manufacturing and distribution.

Certain statements made herein may contain forward-looking information about the Company. The following are some of the most significant factors that may cause the Company's actual results to differ materially from those described in any forward-looking statements made by the Company: a downturn in the lodging industry resulting in lower demand for the Company's products, the loss of or decline in sales to a major customer, failure to secure new business, inefficiencies at the Company's manufacturing facility, the inability to increase prices to customers to compensate for inflationary cost increases, problems implementing the Company's e-commerce initiative, or a decline in sales and gross margin as a result of competitive pressures, including from aggregators on the Internet.