Industry Update
Press Release 2 February 2001

Avendra Launched as Independent Company

Marriott and Hyatt Create Industry Leader in Procurement Services; Fairmont Joins as 5th Founding Partner

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Avendra

WASHINGTON -- Marriott International, Inc. MAR and Hyatt Hotels Corp. today announced the formal launch of Avendra LLC, an independent company providing the largest, most comprehensive procurement network for the North American hospitality and related industries, a market estimated at $80 billion annually.

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With the definitive agreements signed this week, Avendra now manages the combined procurement business for Marriott International and Hyatt. By contributing their central purchasing entities, The Marketplace by Marriott and Hyatt's Rosemont Purchasing, to form Avendra, Marriott International and Hyatt provide the company with a fast start-up and early market leadership. Avendra expects to build on this position as it combines its vast procurement expertise and broad array of purchasing programs with an advanced internet purchasing capability, powered by technology partner GoCo-op.

"No other company has the industry knowledge, experience or the scale of operations as Avendra. It's very relevant that much of Avendra's staff has extensive management backgrounds that include working in hotels, golf clubs, restaurants or other hospitality venues. This resident expertise leads to better programs and products that really work for operators," said Dennis Baker, Avendra president and chief operating officer.

Avendra launches with established programs across a variety of categories, including food and beverage, operations supplies, engineering and maintenance, building and construction, technology and administrative supplies, management services, and furniture, fixtures and equipment. Programs contain contracted products and services that enable operators to meet their financial needs, streamline their purchasing function, and provide high levels of guest satisfaction.

In addition, Avendra offers its customers the flexibility to conduct their procurement business through a variety of methods, be it phone, fax, or the internet. Avendra's unique combination of scale, operational expertise, supply chain management skills, and leading e-commerce technology provide customers with proven programs that work.

Last week, Fairmont Hotels & Resorts and Avendra announced Fairmont's intent to join with Marriott International, Hyatt, ClubCorp USA, Inc. and Bass Hotels & Resorts as a founder of Avendra. It is expected that ClubCorp, Bass and Fairmont will formally join Avendra in the near future. Through its founders' owned, managed and franchised properties, Avendra will have immediate access to serve more than 4,000 hotels (650,000 hotel rooms) and 250 clubs in North America, which together purchase over $10 billion annually in related goods and services. Avendra seeks to serve the broader markets beyond its founders' properties, and launches with a significant base of business through the efforts of its predecessors. Using this substantial base, Avendra's dedicated sales and marketing teams will aggressively pursue all levels and outlets of the hospitality market and related industries.

AVENDRA LLC is a leading professional procurement services company serving the North American hospitality market and related industries. An independent company, Avendra was established by Marriott International, Hyatt Hotels Corporation, ClubCorp USA, Inc., Bass Hotels & Resorts and Fairmont Hotels & Resorts. By combining the significant volume of its customers' purchases with the operational knowledge and expertise of its experienced staff, Avendra creates purchasing programs that offer its customers the right product and service at highly competitive prices. Customers choose their preferred technology for transactions including by phone, fax or via the Internet through advanced technology powered by Avendra's technology partner, GoCo-op. The company is headquartered in Washington, D.C. and has regional offices throughout the United States and Canada. For more information, please call toll free, 877-866-2753, or e-mail [email protected]

MARRIOTT INTERNATIONAL, INC. MAR is a leading worldwide hospitality company with over 2,000 operating units in the United States and 58 other countries and territories. Marriott Lodging operates and franchises hotels under the Marriott, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership resorts under the Marriott, Ritz- Carlton and Horizons brands; operates Marriott Executive Apartments; provides furnished corporate housing through its ExecuStay by Marriott division; and operates conference centers. Other Marriott businesses include senior living communities and services, wholesale food distribution, procurement services and The Ritz-Carlton Hotel Company LLC. The company is headquartered in Washington, D.C., and has approximately 151,000 employees. In fiscal year 1999, Marriott International reported systemwide sales of $17.7 billion. For more information or reservations, please visit the company's web site at .

HYATT CORPORATION and HYATT INTERNATIONAL CORPORATION operate over 200 hotels and resorts around the world. Hyatt Corporation has over 120 hotels in the United States, Canada and the Caribbean under various Hyatt brands. Other Hyatt-related businesses include, among other holdings, the development and operation of vacation ownership resorts under the Hyatt Vacation Club brand, senior living communities and gaming operations. Hyatt International Corporation, through its subsidiaries, operates over 80 hotels and resorts in 34 countries. Both Hyatt Corporation and Hyatt International Corporation are privately held companies owned by entities and trusts primarily for the benefit of the Pritzker family of Chicago.

Note: This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning business strategies and their intended results, and similar statements concerning anticipated future events and expectations that are not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the significant uncertainties raised by the launch of a new, independent enterprise; the integration of the existing procurement operations into the enterprise, risks involved in technological obsolescence, uncertainty involving business development efforts, the effects of economic conditions; supply and demand changes and competitive conditions in the hospitality and internet-enabled procurement services industries; relationships with clients and property owners; the impact of government regulations, and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.

Contact
Wanda Moebius
Phone: 202-944-1987
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