AlphaNet Hospitality Systems and Loews Hotels Expand Long Standing Relationship

Select Loews Hotels to Install InnFax Business Centers in Guest Rooms

              All Loews Rooms in North America to Feature InnFax

LOS ANGELES, June 12, /PRNewswire/ -- AlphaNet Hospitality Systems Inc. (AHS), the leading provider of hotel facsimile and business services announced today that Loews Hotels has agreed to install its InnFax Business Center (IBC-5000) plain paper fax machine, printer and copier in selected hotels and to equip all of its rooms throughout the chain with InnFax.

Developed to address the needs of the most discriminating business traveler, the IBC-5000 combines a plain-paper send and receive in-room fax system with PC printing and copying capabilities. In addition to providing the guest with their own confidential fax number to receive in-room faxes, both the IBC-5000 and AHS' standard InnFax machines offer guests complimentary in-room printing of US News, US and International Finance, and US Sports updates. Also, with InnMail all guests in InnFax equipped rooms automatically receive a personal e-mail address. E-mail messages are converted to fax and automatically print on the InnFax machine, allowing guests to receive e-mail even without a PC.

"We are very pleased with Loews Hotels' corporate initiative to make InnFax a brand standard and a business tool that can be expected in every room throughout the chain," stated Mark Holzberg, President and CEO of AHS. "Loews Hotels contributed early on in the launch of InnFax and the development of our relationship with Loews Hotels is especially gratifying." Holzberg added that, "It is particularly exciting to be working with Loews now as they literally double the size of their company."

Jonathan Tisch, President and CEO of Loews Hotels commented that, "We are continually striving to meet and exceed the expectations of guests at all of our hotels. Over the last four years, InnFax has made a contribution to our guests' experience, and we are pleased about our expanded relationship with AlphaNet as well as the introduction of the InnFax Business Center."

Loews Hotels currently owns and/or operates 14 hotels and resorts in the U.S., Canada and the Principality of Monaco. In the midst of the largest expansion campaign in its history, the chain has a total of six hotels under development. These include the 800-room Loews Miami Beach Hotel (October 1998); the 368-room House of Blues, a Loews Hotel in Chicago (September 1998); the conversion of the landmark PSFS building in Philadelphia into the 585-room Loews Philadelphia Hotel (Winter 2000); and three hotels at Universal Studios Escape in Orlando. These include the 750-room Portofino Bay Hotel, a Loews Hotel (Spring 1999); a 650-room Hard Rock Hotel (Fall 2000); and a third 1,000-room hotel opening in 2001.

AlphaNet Hospitality Systems Inc. is the world's leading provider of in-room facsimile and business services and hotel business centers to the hospitality industry. Its InnFax service can be found in over 50,000 hotel rooms, operating in 17 countries. The company is a wholly owned subsidiary of AlphaNet Telecom Inc., a publicly traded company listed on the Toronto Stock Exchange under the symbol FAX. For more information, please visit AHS during HITEC at booth 226 or visit http://www.alphanet.net.

SOURCE AlphaNet Hospitality Systems, Inc.

    -0-                             06/12/98

/CONTACT: DJ Vallauri, Vice President of AlphaNet Hospitality Systems, Inc., 201-327-4700, or fax, 201-327-7896, or [e-mail]/

/Web site: http://www.alphanet.net/

(FAX.)

CO: AlphaNet Hospitality Systems, Inc.; Loews Hotels ST: California, Ontario IN: LEI SU:

LZ-DK -- NYF053 -- 4440 06/12/98 14:57 EDT http://www.prnewswire.com