ARESCOM Agrees to Deploy Wired and Wireless High Speed Internet Access at 160+ Properties Owned by Prime

Successful pilot project involving 19 properties served as the springboard for a new companywide ARESCOM HSIA standard; Prime's franchised properties to be offered similar HSIA package

FREMONT, CALIF. / FAIRFIELD, N.J. - JUNE 3, 2003 -- ARESCOM INC. has agreed to deploy its wired and wireless High Speed Internet Access solutions across more than 160 properties owned by Prime Hospitality Corp. (NYSE: PDQ), an owner/operator and franchisor of more than 240 lodging properties throughout North America. The agreement followed a successful ARESCOM HSIA pilot project at 19 Prime-owned properties. Franchises of Prime's AmeriSuitesR and Wellesley Inns & SuitesR brands are being offered a similar HSIA package.

This new guest amenity will be available on both a wired and WiFi (802.11b) wireless basis in all guest and meeting rooms as well as wireless access points in all common areas including hotel lobbies, fitness centers, pool areas, and restaurants. Thanks to its unique network management software, ARESCOM is able to identify and correct connectivity issues before the guest even knows there's an issue. Guests also will be offered 24-hour, toll-free customer assistance.

"We are excited to offer this state-of-the-art amenity to our guests, who are increasingly making lodging decisions based on the presence of high speed Internet connections." said Maureen O'Hanlon, Senior Vice President of Sales and Marketing for Prime. "Being the first to offer both wired and WiFi Internet access in all guestrooms and public spaces demonstrates our commitment to providing guests with flexible technology so they can connect their way."

"Providing guests with the ability to connect wired or wireless capable notebook computers to the Internet and corporate networks is an important part of our technology strategy and demonstrates our continued focus of satisfying our guests needs," said Mark Marshall, Director of Technical Services for Prime.

"We've only had ARESCOM High Speed Internet Access in place for about nine months, and already I can't imagine trying to compete without it," said Bobby Billstone, General Manager of the 124-suite AmeriSuites at Walnut Hill in Irving, Texas. "We have had almost no guest complaints regarding our High Speed Internet Access, and we're seeing our guest satisfaction scores increase along with our occupancy."

Billstone said the property is located nearby companies such as Nokia, IBM and Verizon - and that most of these corporations have made HSIA a requirement for their preferred lodging partners in 2003 and beyond.

" It's always wise to make the move to future industry standards before they become commonplace, so you can win and keep business - and that's exactly what we've done," said Glen Brydges, GM of the 137-room Wellsley Inn & Suites in Hillsboro, Ore. "Most of our income comes from business travelers and corporate accounts, where HSIA now is a coveted in-room amenity."

Path Less Traveled
“ ARESCOM High Speed Internet Access gives hotel owners a major competitive edge, with zero risk to the bottom line and proven upside for guests,” said Dave Egan, ARESCOM Vice President of Marketing. “We are excited that Prime has chosen this cutting edge technology amenity to bolster occupancy, loyalty and revenues for its hotels.”

“We’re right on track with our goal of installing our wired and wireless High Speed Internet Access solutions at 1,000 business-class hotels across the nation by the close of 2004,” he said. “Because we alone design and manufacture our own HSIA equipment and install it in hotels for free, we are well positioned to become the supplier of choice in this market.”

Egan said ARESCOM’s risk-free, cost-free-to-hotels business model is proven to boost guest satisfaction, loyalty and repeat business and referrals, along with occupancy, average daily rates and revenue per available room.

Before ARESCOM began supplying and supporting hospitality directly, High Speed Internet Access providers offering revenue-share models basically were service companies trying but failing to branch out into new technology, Egan said. Their higher HSIA solution costs, limited installation and support experience, and failure to bill and service each guest directly, caused hoteliers too many headaches.

“ ARESCOM is a technology company that has branched into a service area closely intertwined with the very products we have manufactured for years,” Eagan said. “What this means is that ARESCOM is best positioned to deliver HSIA free to hotels because our equipment has no intermediate pricing mark-ups and our technicians are adept at integrating and supporting the HSIA solutions we design and manufacture.”

When conducting customer focus groups, ARESCOM found that two of the top barriers to HSIA adoption are: Hotels find equipment, installation and monthly connectivity and support costs prohibitive; and customer service and sales and marketing support from most HSIA suppliers is severely lacking, Eagan said.

“ With our on-line direct credit-card billing and around-the-clock professional technical support, we are helping hotels meet guests’ demands and differentiate their properties and brands with zero risk or expense,” Egan said. “Not only do we deliver free of equipment, installation or maintenance charges a service that bolsters guest satisfaction, occupancy and loyalty among business travelers, but we also share a piece of the revenue pie with hotels.

“ We have created a paradigm shift on the support side of HSIA. Because of our unique network management software, we can identify and correct connectivity issues before the guest even knows there’s an issue,” he said. “At ARESCOM, we’re working hard to put hospitality back in HSIA, and it’s paying big dividends to our rapidly growing base of installed business hotels.”

About Prime Hospitality
Prime Hospitality Corp. (NYSE: PDQ), one of the nation’s premiere lodging companies, owns, manages, develops and franchises more than 240 hotels throughout North America. The Company owns and operates three proprietary brands, Prime Hotels & Resorts(SM) (full-service), AmeriSuites® (all-suites), and Wellesley Inns & Suites® (limited service). Also within Prime’s portfolio are owned and/or managed hotels operated under franchise agreements with national hotel chains including Hilton, Radisson, Sheraton and Holiday Inn. Prime can be accessed over the Internet at http://www.primehospitality.com.

About ARESCOM
Founded in the Silicon Valley in 1996, ARESCOM designs, manufactures and markets a comprehensive line of broadband access solutions, ranging from the most sophisticated turnkey wired and wireless High Speed Internet Access solutions for the booming worldwide hospitality market, to state-of-the-art DSL and wireless solutions for homes and small businesses. ARESCOM’s DSL broadband access equipment is widely deployed by hundreds of hotels, as well as major telecommunication carriers, REITs, ISPs and SOHOs throughout the U.S., Asia and Europe. Because ARESCOM alone designs and manufactures its own HSIA equipment and installs and supports it 24/7/365 for hotel owner/operators, the company is fast becoming hospitality’s HSIA supplier of choice. The ARESCOM Hospitality Network (AHN) is on pace to deploy ARESCOM’s proven plug-and-play wired and secure wireless HSIA — as well as CineMagic Video-on-Demand solutions showing DVD-quality movies on laptops and TV sets with pause, rewind and fast-forward capabilities — in 1,000 hotels across the nation by the close of 2004. For more information on the company, please visit www.arescom.com.

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