Optimizing Revenues and Profits across Distribution Channels: Maxim Revenue Management Solutions and Lexington Services present LexKey™

Chicago, IL 9-June-2003 - Maxim Revenue Management Solutions (Maxim RMS), the global leader in Profit Optimization and Revenue Management solutions to the hospitality industry, and Lexington Services (Lexington), the largest provider of global hotel reservations in North America and second largest in the world, today announced a long-term strategic partnership that promises to revolutionize the hospitality distribution paradigm. The two companies are proud to jointly present: LexKey™ by Maxim, a customized version of Maxim's web-based Maxim e.FLEX™ system, and the most advanced revenue & profit optimization solution available anywhere today. LexKey is the only solution that is specifically designed to allow a hotel to optimize Revenues, RevPAR and Profits from all of their distribution channels.

Announcing the partnership, Kevin Ruhman, Vice-President Business Development-Americas & Client Services for Lexington said: "There is no denying the fact that today's highly fragmented distribution environment poses hoteliers around the world with many challenges. Deciding the optimal mix of rates and length-of-stay to accept, for any given arrival day from each distribution channel, can be a daunting task - price too high and you risk losing the business, price too low and you effectively dilute the revenue and profit potential of your hotel. Throw in the added complexity of forecasting demand for each channel for each day for an entire year, for a variety of different price points and for each room type in your hotel, and suddenly you are faced with an impossibly complex task. In this increasingly competitive operating environment, only hotels that are able to successfully address these critical factors will be able to continue to enhance their profitability year-on-year." He adds, "At Lexington Services, we are committed to offering 'best-in-class' solutions to all our member hotels. Our extensive due diligence in this area led us to the conclusion that MaximRMS was the ideal vendor to deliver such a solution. Their clearly superior and patented technology and their proven track record in delivering high-impact revenue management and profit optimization solutions to the hospitality industry made them the obvious choice. We are delighted to be entering into this partnership with MaximRMS, and are confident that in LexKey, we have a solution that far surpasses the capabilities of any other revenue management system, and that will immediately deliver tangible, measurable gains at all of our hotels."

According to Steven A. Gelb, Managing Director of MaximRMS : "We are very pleased to have been chosen as the partner of choice by Lexington in this business-critical strategic initiative. We have been extremely impressed with Lexington's single-minded dedication to adding value to the revenues and profitability at each member hotel, which is a fundamental philosophy that we share. Over the course of the next many years, we look forward to working hand-in-hand with Lexington to continue to push the Revenue Management envelope in ensuring that leading-edge, value-enhancing Maxim technology can be implemented at all Lexington hotels."

Ravneet Bhandari, Senior Vice President-Marketing for MaximRMS adds: "LexKey marks probably the most significant milestone in the annals of Distribution Optimization and Revenue Management for the hospitality industry, and the timing could not possibly be better. Lexington is the ideal partner for us : A company with foresight, direction, reach and 'real-world' recognition of key issues facing the global Hospitality Industry. We believe that LexKey further solidifies Lexington's well-deserved reputation of being at the forefront of technology, and a strong guiding force in shaping the future of Distribution for the Hospitality Industry. We are honored to be contributing to this new distribution paradigm, and stand committed to its implementation at the many thousands of Lexington Hotels around the world."

The Value Proposition: LexKey™ is a solution so powerful that, upon full implementation and maximum use, a hotel will start to see results within a short period of time. In addition to putting all this power at the hotelier's fingertips, LexKey™ is so simple to use that it needs less than 10 minutes of the hotelier's time each day.

LexKey's design and best-in-class mathematical algorithms allow it to analyze customer behavior and recognize the price-sensitivity and profit potential of each distribution channel for every given arrival day. These trends are then converted into highly sophisticated demand and revenue forecasts and the patented optimization engine generates the "perfect" revenue management controls for each channel: what price to charge on any given day, what room types to sell, and what lengths-of-stay to accept for each customer purchase.

All of the hotel's high "Net Lifetime Value" customers are clearly recognized, and the system makes the appropriate adjustments in its controls to ensure that not only are profits being optimized, but also that the highest level of customer service is being delivered. All of these controls are then uploaded directly to each distribution channel through LexKey's interface with Lexington Services' central reservations system, allowing all hotels to seamlessly optimize their inventory and rates in all channels. An easy-to-use, highly intuitive front-end allows hotels to access their system from any computer that has a web browser installed.

LexKey™ is available for deployment at all Lexington member hotels with immediate effect. The system will be on display at the HITEC show in New Orleans from June 24-26, 2003. Please visit either MaximRMS at Booth #1328 or Lexington Services at Booth #1302 for more details.

About Lexington Services
Lexington Services is a proven leader in electronic distribution technology and services to hotels worldwide. Since 1991, Lexington Services has provided independent hotels, resorts, chains and management companies the ability to realize their optimal revenue potential through effective reservation services and product distribution. Lexington capitalizes on the power of the travel agent global distribution systems (GDS), Internet Distribution Systems (IDS), Call Center Services, Booking Engine technology and marketing alliance strengths to generate, manage and process hotel reservations electronically. Lexington Services provides electronic distribution solutions using the latest and most advanced central reservations technology available in the marketplace. Along with effective technology solutions, Lexington has distinguished itself as the leader in providing continual consulting services to its members, advising them on the ever-changing distribution landscape that is critical to their hotel positioning and representation. Lexington works with over 3800 hotels encompassing 28 brands in 81 countries, and is headquartered in Dallas/Irving Texas with worldwide offices or representatives in Germany, the United Kingdom, Australia, France, Italy and Spain. More information about Lexington is available at www.lexres.com.