Competitors Team Up to Take Heat off Hotels - Partnership Bolsters Lodging's Energy-Management Efforts

April 1, 2001

INNCOM International, Inc., a global leader in hotel guest-room control systems, and eRoomSystem Technologies, Inc. (NASDAQ: ERMS), a leading provider of in-room technologies for the lodging industry, today announced an exclusive OEM agreement in which INNCOM International will private-label its e4 Smart Digital Thermostat on behalf of eRoomSystem Technologies.

Under the agreement, Old Lyme-based INNCOM will manufacture and private label the e4 Smart Digital Thermostat under the eRoomEnergy brand name. eRoomSystem Technologies will complete the installation and facilitate all ongoing maintenance and system enhancements.

"We conducted an exhaustive search in the energy-management arena to determine if we should develop an energy-management product line in-house or purchase an existing offering," said Gregory Hrncir, Vice President of Business Development for eRoomSystem Technologies. "During our research and subsequent supplier selection process, it became clear to us that INNCOM has designed the most flexible, dynamic system on the market. Just as important, INNCOM shares our vision of providing a leading-edge technology platform to support multiple peripherals driving guestroom and hospitality energy management"
"We conducted an exhaustive search in the energy-management arena to determine if we should develop an energy-management product line in-house or purchase an existing offering," said Gregory Hrncir, Vice President of Business Development for eRoomSystem Technologies. "During our research and subsequent supplier selection process, it became clear to us that INNCOM has designed the most flexible, dynamic system on the market. Just as important, INNCOM shares our vision of providing a leading-edge technology platform to support multiple peripherals driving guestroom and hospitality energy management."

"We are pleased and enthusiastic about the partnering relationship with eRoomSystem Technologies," said Duane Buckingham, INNCOM President and Chief Executive Officer. "INNCOM has been interested in developing business partnerships for some time. This agreement is an ideal example of how prospective competitors can collaborate in a manner that serves the two companies' best interests and provides an enhanced range of solutions to hotels."

INNCOM's e4 Smart Digital Thermostat is designed to control virtually any fan coil unit or packaged terminal air conditioner (PTAC) found in hotel guestrooms. It comes standard with an illuminated digital display, selectable Fahrenheit/Celsius control, one-touch temperature selection, off/auto, and fan and display buttons. Other features include five relays, optional on-board infrared transceiver and passive infrared occupancy sensor.

The e4 is readily expandable to include functionality such as humidity control, outside temperature display, refreshment center access reporting, occupancy reporting to housekeeping, automatic control of lights and much more. It also can be controlled remotely either by infrared or low voltage wiring.

"We are very impressed with the expandable communication capabilities of the e4," said Hrncir. "Later this year, we anticipate integrating the e4 with our fully-automated, computerized and interactive eRoomServ Refreshment Centers initially with unidirectional communication with the Refreshment Centers. Shortly thereafter we intend to offer bi-directional communication capabilities."

Automated Profit Center

Installed in leading hotel chains and independent properties in the United States, Canada, South America and in the Bahamas, eRoomSystem's line of eRoomServ Refreshment Centers and eRoomSafes is much more than traditional honor bars and room safes. "Our eRoomServ Refreshment Centers and eRoomSafes are fully-automated profit centers created specifically to benefit both hotels and their valued guests," said Hrncir. "Within the next twelve months, two-way communication will occur from the hotel property-management system, through the eRoomServ Refreshment Center to the eRoomEnergy product and back. This will enable the front desk to adjust guestroom temperature at check-in or check-out, and adjust room temperature to preset levels when a guest leaves and returns to the room during his or her stay." Controlled by the eRoomSystem, every eRoomServ unit confirms each sale at the time of purchase and automatically posts charges to the guest folio. eRoomSystem's technology virtually eliminates theft, guest disputes and after-departure charges. eRoomServ Refreshment Centers may be customized to any room's décor and have an inventory capacity of up to 54 items and 27 product selections. The eRoomServ Refreshment Center generates higher sales, lower labor costs, real-time reporting, tight inventory tracking and control, as well as increased customer satisfaction. eRoomSystem is committed to consistently develop revolutionary, customer-driven solutions that exceed the expectations of hotels and their guests.

INNtouch with Guest Privacy

INNCOM's advanced in-room technology is sharing information from the guest to hotel employees. INNtouch, the newest INNCOM offering, electronically displays guest privacy and service needs through an advanced interactive doorbell. "The INNtouch system eliminates unsightly doorknob tags and provides a pleasing doorbell chime to announce staff and other guests," said Rick Quirino, INNCOM VP of Sales and Marketing. "At the touch of a button, 'Do-Not-Disturb' or 'Make-Up-Room' is immediately displayed on the exterior wallplate." With the addition of a motion sensor inside the guestroom, INNtouch allows staff to determine the occupancy of a room without knocking or yelling through the door, Quirino said. INNtouch can operate on a stand-alone basis or seamlessly integrate with INNCOM's centrally controlled guestroom energy-management system.

Future is Now, Consultant Says

"The question of 'what is the future of guestroom communications' is one that has been asked again and again over the years," said Rick Stanfield, President of Nashville-based Stanfield Hospitality Consultants. "The answer has been obvious for a decade and a half or more a centralized, high-speed communication system between guestrooms and the rest of the hotel and the outside world."

Once an affordable backbone communications system is in place to and from the guestroom, Stanfield said dozens of improved services for the guest, as well as significant revenue enhancements and cost-control efficiencies for the hotel will flow naturally. However, few suppliers and their hotel clients have accomplished this goal, he said.

"INNCOM International is one company, now entering its 15th year, that has steadfastly been moving in the right direction," Stanfield said. "I have worked with INNCOM and Duane Buckingham on several projects over the years, including putting on-line, from concept to installation, a 2,900 room centralized locking/energy-management system. This project was brought to fruition in 1996 by the vision, hard work and creativity that INNCOM brought to it.

"The centralized energy-management system that INNCOM has today is a result of years of experience," he said. "It is most refreshing to see that INNCOM has taken the lead in carrying out communication processes well beyond energy management.

"Not only have these two critical industry suppliers been on the forefront of deploying in-room technology solutions, now they are helping to pioneer strategic partnerships that will benefit hotels and guests for years to come," Stanfield said.

About INNCOM and eRoomSystem

INNCOM International is the global leader in hotel guest-room control systems. Since 1986 it has pioneered the development of systems that integrate energy management and electronic lock control, as well as the control of lighting, TV, drapes and other guestroom appliances. Many of those systems are based on the company's patented infrared technology. Elsewhere in the hotel, INNCOM links other operating systems, such as PBX, PMS and POS, to management and support staff and the outside world. The result is a cohesive, easy-to-use system that contributes to overall operating efficiency and superior guest experiences. For additional information on the company and its unique offerings, please visit http://www.inncom.com.

eRoomSystem Technologies is a full service in-room technological provider for the lodging and travel industry. The company's intelligent in-room computer platform and communications network supports eRoomSystem's line of fully-automated and interactive eRoomServ Refreshment Centers, eRoomSafes and eRoomEnergy products and other future applications. Such applications will include information management services, credit card/smart card capabilities for direct billing, network access solutions, remote engineering and maintenance services, and in-room cash advances. eRoomSystem's products are installed in major hotel chains both domestically and internationally. eRoomSystem is a publicly traded company listed on the NASDAQ SmallCap Market as ERMS. The company's complete line of solutions are available on-line at http://www.eroomsystem.com.

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