Century 21 Real Estate Corp. and Fairfield Communities Announce Further Franchise Agreements.

PARSIPPANY, N.J. and LITTLE ROCK, Ark.--(BUSINESS WIRE)--March 12, 1997--

Leading Timeshare Developer Expands Association by Adding Six CENTURY 21 Offices

In a further display of cross-industry synergies, HFS Incorporated (NYSE:HFS) announced today the sale of six additional CENTURY 21 franchises to Fairfield Communities, Inc. (NYSE:FFD), a leading vacation ownership (VOI) company.

Little Rock-based Fairfield, which sells new vacation timeshare units, will convert five of its existing offices and create one new office to the franchise system. These franchises will increase Fairfield's total CENTURY 21 offices in the United States to eight.

HFS Incorporated chairman and chief executive officer Henry R. Silverman said, "This franchise arrangement with Fairfield is the first of what we hope to be many opportunities to introduce our real estate brands into the vacation ownership industry. This represents a unique cross-marketing opportunity involving our timeshare exchange company, Resort Condominiums International (RCI), and our real estate franchise companies. In fact, Steve Miller, president of RCI, was responsible for bringing CENTURY 21 and Fairfield together."

"This is an excellent example of how we are able to cross-leverage our sister companies in a way that provides benefit to RCI developers, as well as to our real estate franchise systems," said John Osborne, executive vice president of Franchise Sales for HFS. "The expanded association with the CENTURY 21 system by a franchisee with the excellent reputation of Fairfield Communities is a tremendous vote of confidence in our system. The CENTURY 21 brand name has already added instant recognition and consumer confidence at the two initial CENTURY 21 Fairfield locations, which is why Fairfield has opted to franchise more offices with us. On the other hand, Fairfield provides us with further inroads into the fast-growing timeshare industry. It's a win-win-win situation all around."

Fairfield's President and Chief Executive Officer, John W. McConnell, commented, "Our experience in the VOI business makes us a perfect partner for HFS and CENTURY 21. We believe that the selection of Fairfield as a franchisee demonstrates both the quality of our operations and our vacation ownership products. We are particularly honored to be the first exclusive VOI ownership company to become a CENTURY 21 franchisee."

"These franchises will also enable us to increase our marketing efficiencies. Since the time that CENTURY 21 Fairfield was established there has been improvement in response rates from potential owners, as well as improvements in closings of actual sales. The combination of these franchises and our other innovative marketing programs, such as our Discovery Vacations, enables us to increase significantly the number of potential owners who are introduced to Fairfield," McConnell added.

Under the agreement, existing Fairfield sales offices in Charlotte, N.C.; Myrtle Beach, S.C.; Atlanta, Ga.; and Cypress Palms at Orlando, Fla., will become CENTURY 21 offices, as will a new office being established in St. Louis, Mo. The establishment of these new franchises expands a relationship that was established last year with a pilot program in which Fairfield Bay and Greensboro offices assumed the CENTURY 21 brand.

Fairfield Communities, Inc., incorporated in 1969, is one of the nation's largest vacation ownership companies, providing quality leisure time experiences at 15 locations in 11 states, to over 160,000 Fairfield property owners.

Century 21 Real Estate Corporation, a subsidiary of HFS Incorporated (NYSE:HFS), is the largest residential real estate sales organization in the world with more than 6,200 independently owned and operated franchised brokerage offices in 15 countries and territories worldwide.

HFS Incorporated is a global consumer services company. The Company is the larges franchisor of hotels and residential real estate brokerage offices, owns Avis, Inc., the world's second largest rental car system, and owns Resort Condominiums International, Inc., the largest provider of vacation timeshare exchanges worldwide. The Company recently announced a definitive merger agreement with PHH Corporation, expected to close shortly. -0- Editor's Note: Photographs of signing ceremony available.

CONTACT: Christine Palumbo, RLM 

for CENTURY 21

Tel: [phone]

or

Michele Katz

Morgen-Walke Assoc.

for Fairfield Communities

Tel: [phone]