FAIRFIELD, N.J., Jan. 7 /PRNewswire-FirstCall/—Prime Hospitality Corp. today unveiled its new hotel brand, Prime Hotels & Resorts, with the launch of the Sheraton Hotel Saratoga Springs as the Prime Hotel and Conference Center, Saratoga Springs.

Saratoga Springs is the first re-branded property in the company`s plans to develop under the Prime Hotels & Resorts flag a portfolio of upscale, full- service hotels. Acquisitions from other chains or ownership groups will provide the foundation for brand expansion. Names and locations of additional properties in targeted suburban/commercial locations will not be announced until later in the first quarter 2003. Potential city center locations are also under consideration.

Features of a Prime-branded hotel will include 200-500 guest rooms and suites, a selection of dining and entertainment venues, concierge-level services, automated check-in kiosks, swimming pool and fitness center, business center, and 10,000-50,000 square feet of meeting and banquet space. Prospective amenities include high-speed Internet access, in-room cordless phones, and expanded cable television offerings including on-demand viewing services. The kiosks, along with planned amenities, such as high-speed Internet access, in-room cordless phones, wireless booking and expanded cable television offerings including on-demand viewing services are designed to provide the guest with timesaving conveniences.

The new reservations telephone number is 1-866-WE-R-PRIME (1-866-937-7746).

“Introducing a new proprietary hotel brand into the market is the strategic next-step for Prime,” said A.F Petrocelli, Chairman and CEO. “We enjoy a successful track record as owners/operators of both upscale full- service and limited service properties, as well as the management expertise and our reputation in the hospitality industry. The Prime brand will allow us to explore innumerable innovative service strategies in the competitive upscale lodging industry.”

“Our key target is the business traveler. The travel trade, particularly meeting planners, along with major corporations will provide our business base. The Prime brand will compete with Sheraton, Hilton, Radisson and Marriott brands for travel commerce,” said Steve Kronick, Prime`s Senior Vice President of Operations for full service hotels. “The scope of the Prime Rewards frequent guest loyalty program will expand to include Prime Hotels, awarding points and miles to guests for qualified stays nationwide at Prime Hotels, AmeriSuites or Wellesley Inns & Suites,” he added.

Prime Hospitality presently owns and operates two proprietary brands, AmeriSuites(R) (all-suites) and Wellesley Inns & Suites(R) (limited-service) and owns and/or manages hotels operated under franchise agreements with national hotel chains as well. The Prime Hotels & Resorts brand will benefit by its parent company`s existing infrastructure and support services.

Prime Hospitality Corp.(R), one of the nation`s premiere lodging companies, owns, manages, develops and franchises over 240 hotels throughout the United States. Prime Hospitality owns and operates three proprietary brands, Prime Hotels and Resorts(SM) (full-service), AmeriSuites(R) (all-suites) and Wellesley Inns & Suites(R) (limited-service). Also within Prime Hospitality`s portfolio are owned and/or managed hotels operated under franchise agreements with national hotel chains including Hilton, Radisson, Sheraton, Holiday Inn and Ramada.

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