Mr. Gary Reagh, President and CEO wishes to announce the following
As a result of changes introduced by management, operating costs have been
reduced by approximately $200,000 annually. Based on the current level of
sales and cost savings the Company expects to have positive cash flow from
operations for the quarter beginning December 1, 2003.
The Company`s annual advertising revenues of approximately $550,000, that
it earns from its existing advertising and reservation boards,
http://www.infocenter-inc.com/, represents less than 30% utilization of
the existing boards. To achieve a greater utilization of the boards the
Company is in the process of developing a North American network of direct
area sales representatives to supplement its existing team of
Budgethotels currently features approximately 600 hotels and other
advertisers, that are unique to Budgethotels and aimed at the “budget”
online traveler, that pay an annual subscription fee to be on its website
http://www.budgethotels.com/. The Company has a target of increasing this
number to approximately 5,000 advertisers over the next 18 months.
The Company had a 90 day agreement with a major Hotel Reservation
Corporation whereby Budgethotels provided space on various advertising
boards and earned a commission on all reservations made from the boards.
While the 90 days have expired both companies have continued to operate
under the terms of the original agreement and have expanded the
relationship to include having all calls made to Budgethotels` 800 number
on its website be handled by the major party`s call center.
ABOUT BUDGET HOTELS:
Budgethotels Network Inc. provides services for the “budget” traveler
through two compatible networks;
(1) Advertising and Reservation Boards; Advertising and commission
revenues are earned by the company through its advertising and
reservation boards, http://www.infocenter-inc.com/, located in major
transportation terminals under long term exclusive agreements with
Amtrak, Greyhound Lines, New York Port Authority and Via Rail.
(2) Online advertising and travel reservations; Advertising and
commission income is earned by the company through its primary
website, http://www.budgethotels.com/, that features more than 45,000 hotels,
motels, bed and breakfast and youth hostels around the world.