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Choice Hotels International Goes Live with Initiate Identity Hub™ Software to Improve Customer Service and Guest Experience 

Initiate Systems' Customer Data Integration (CDI) solution creates a trusted system to track 15 million guest stays across almost 4,000 hotel properties in the U.S. and Canada

Chicago (August 3, 2004) - Initiate Systems, Inc., a leading provider of customer data integration (CDI) software and services for the on-demand enterprise, today announced that Choice Hotels International (NYSE:CHH), one of the world's largest lodging franchisors, has implemented the Initiate Identity Hub™ software to track guest loyalty and personalize hospitality experiences for hotel guests across all of its properties in the U.S. and Canada. Selected for its experience in matching and linking customer information across multiple systems, Initiate Systems provides Choice Hotels with a virtual, yet consolidated customer-centric solution which integrates guest stay data and provides Choice Hotels with complete, accurate and up-to-the moment interaction history across its brands. By accurately linking their guest transaction and profile data, Choice Hotels is able to find and track its best guests across multiple brands and properties, and use that information to show that they know and value those guests on each visit.

Choice Hotels franchises hotels under the Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge and Rodeway Inn brand names. Choice Hotels implemented the Initiate Identity Hub™ software to match and link customer stay data with loyalty program membership across all brands and properties. Currently, the Initiate Identity Hub™ software processes over 1 million stay transactions per month, complete with guest history. Choice Hotels has gained a better understanding of its guests by incorporating customer data integration, CRM, marketing and data mining into its guest relations efforts.

Choice Hotels also provides its franchisees the ability to conduct marketing, sales and customer satisfaction initiatives as sophisticated as a centrally owned enterprise.

"In order to maintain our leadership position in the hospitality industry, Choice Hotels needed a technology that allowed us to cater to our guests' needs and preferences from any of our points of service – the Internet, reservation channels, within facilities, guest services or frequency programs," said Gary Thomson, senior vice president and chief information officer at Choice Hotels. "With Initiate's CDI solution, we are able to manage and integrate customer data within our systems in real time, enabling us to demonstrate an appreciation for our guests and recognize them for their loyalty, regardless of which of our properties they visit."

"Leaders in the intensely competitive hospitality industry provide exceptional guest service. Integrating accurate customer data and tracking it in real-time is a pre-requisite to delivering the personalized service that drives customer loyalty," said Bill Conroy, CEO and president of Initiate Systems. "By using Initiate Identity Hub™ software, Choice Hotels has the information it needs to deliver the highest level of personalized service and customer satisfaction in its category."

About Choice Hotels International

Choice Hotels International, one of the world's largest lodging franchisors, franchises more than 5,000 hotels open or under development in 44 countries and territories under the Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, and Rodeway Inn brand names. For more information on Choice Hotels, visit the company's Web site at www.choicehotels.com.

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, and Rodeway Inn, are proprietary trademarks and service marks of Choice Hotels International, Inc.

About Initiate Systems, Inc.

Initiate Systems, Inc. (www.initiatesystems.com) is a leading provider of customer data integration software and services for the on-demand enterprise. Initiate Systems provides the most accurate, complete, up-to-the-moment information to all point-of-service applications, business intelligence platforms and back office systems. Initiate's award-winning Initiate Identity Hub™ software delivers high business value in many industries, including communications, financial services, healthcare, hospitality, retail and the public sector, by instantly finding and accurately linking all the records about a person, corporate entity or object across disparate data sources on-demand, regardless of data volume.

Initiate™, InitiateSM, the Initiate logo, and Initiate Identity Hub™ are trademarks and/or service marks owned by Initiate Systems, Inc., which may be registered in certain jurisdictions.

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