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Marriott’s Two Flags Joint Venture Interest Redeemed

Marriott International, Inc. today announced that Cendant Corporation has
exercised its option to redeem Marriott’s interest in the Two Flags joint
venture, which owns the trademarks and licenses for the Ramada and Days
Inn lodging brands in the United States.
Marriott continues to own the trademarks and licenses for Ramada outside
of the United States; operate and franchise hotels outside of the United
States and Canada under the Ramada International brand name; and license
the Ramada name in Canada to Cendant.

Marriott acquired the rights to Ramada through a larger acquisition in
1997. Following the acquisition, Marriott continued to license the Ramada
name in the U.S. to Cendant for use in lodging and timeshare under
existing long-term agreements. In March 2002, the two companies formed a
joint venture that licensed the trademarks for Ramada and Days Inn in the

“Today’s redemption of our joint venture interest represents Marriott’s
intention to monetize and exit from a non-core asset, the domestic Ramada
rights,” said Arne M. Sorenson, executive vice president, chief financial
officer and president - continental Europe lodging for Marriott

The redemption of the joint venture interest is effective April 1, 2004.
Marriott expects to receive approximately $200 million on Sept. 1, 2004,
and use the funds for its ongoing share repurchase program. Marriott
expects to record a pretax gain of approximately $13 million in connection
with this transaction in the third quarter.