Candlewood Suites Selects Hotel Information Systems' `'LodgingTouch'' PMS for Chain-Wide Implementation.

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 2, 2000

Hotel Information Systems (HIS), the hospitality division of MAI Systems Corp. (AMEX:NOW), Wednesday announced an agreement with Candlewood Hotel Co. Inc. (Nasdaq:CNDL) for the installation of HIS' Microsoft(R) Windows NT(R) LodgingTouch(TM) Property Management System (PMS) at Candlewood Suites and Cambridge Suites hotels.

The agreement also calls for the installation of a fully integrated Central Information System (CIS) which, together with an interface to Candlewood's back office accounting software, will provide Candlewood Suites with streamlined financial and operational management.

The LodgingTouch PMS provides the hospitality industry with a fully integrated, scaleable property management system that facilitates centralization, consolidation and easily accessible data. Running on the Microsoft(R) Windows NT(R) operating environment, it is a true 32-bit, ODBC compliant client/server solution.

The open architecture design allows for customization of the application and the ease of adding modular interfaces make it a long-lasting investment for hotel chains as well as single properties of all types and sizes.

MAI CEO W. Brian Kretzmer commented, "Our existing relationship with Candlewood is further strengthened by this agreement. We appreciate the continuing confidence of Candlewood in both our company and our products and look forward to a long and mutually beneficial relationship.

"The signing of this agreement following our profitable second quarter provides the company with even greater momentum for the remainder of 2000 and beyond."

Candlewood chose LodgingTouch for its enterprise-wide integration capability and HIS's ability to quickly develop the required interfaces for integration. Another deciding factor was HIS' proven ability to customize the software, so that Candlewood may further enhance its specialized guest services as needed.

"HIS' customer oriented culture and development expertise are a good fit for Candlewood," said John Angle, director of information technology for Candlewood. "The user-friendly nature of the LodgingTouch PMS and the free flow of information provided by our new CIS will enhance our simple but unique operating platform."

About Candlewood Suites

Candlewood Hotel Co. owns, operates and franchises Candlewood Suites, which targets mid-market business travelers and others on short or long-term stays. Chairman and CEO Jack DeBoer, who founded Residence Inn and co-founded Summerfield Suites in the 1970s and 1980s, founded Candlewood Suites in 1995 and Cambridge Suites in 1998.

He is recognized in the hotel industry as the creator of the extended-stay concept. There are currently 85 Candlewood Suites open coast-to-coast, with more under construction.

About Hotel Information Systems

Hotel Information Systems, a division of MAI Systems Corp., is a worldwide provider of total information systems to the hospitality industry. With headquarters in Irvine, Hotel Information Systems has offices in Canada, the United Kingdom, Hong Kong, Singapore and Mexico as well as a worldwide distributor network.

Hotel Information Systems sells, installs and supports a wide variety of automation solutions including LodgingTouch(TM), Paragon(TM) and CLS(TM) Software.

Offering superior performance and leading-edge technology, these feature-rich solutions operate on Windows NT(R), OS/400 and UNIX platforms and include modules for Front Office, Back Office, Point Of Sale (POS), Central Reservations Systems (CRS) and Central Information Systems (CIS).

Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, carrying out strategic relationships, competition and technological change; obtaining customer orders; delays in product development; lack of enforceability of patents, copyrights and proprietary rights; changes in business strategy or development plans; and other factors set forth in the company's Annual Report or Form 10-K for the year ended Dec. 31, 1999. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Note to Editors: Hotel Information Systems, CLS, and Paragon are registered trademarks of MAI Systems Corp. All other products and services are trademarks of their respective companies.