News Release

AT&T And Hilton Hotels Corporation Solidify Strategic Relationship With $67.5 Million Agreement

Company applies AT&T networking technology to deliver value to travelers

BEVERLY HILLS, Calif. -- Hilton Hotels Corporation has broadened its long-standing strategic relationship with AT&T, signing a $67.5 million agreement for a networking solution focused on enhanced response and service to guests.

Hilton Hotels Corporation, based in Beverly Hills, Calif., is recognized internationally as a preeminent hospitality company.  It owns, manages and franchises more than 2,100 hotels, resorts and vacation ownership properties.  

Building on a relationship that spans more than 18 years, Hilton Hotels Corporation has signed an agreement with AT&T that expands a secure, high-speed wide area network (WAN) solution that integrates an array of voice, data and Internet services.  This private network enables Hilton Hotels' enterprise-wide technology solution, OnQTM (pronounced On Cue), to provide identical views of guest information to nearly 150,000 team members working across six distinct brands, in more than 2,100 hotels, Hilton Reservations Worldwide, and the Hilton HHonors customer service center.  This ability to "know the customer" enables Hilton Hotels to deliver services that meet or exceed the individual needs of their guests.

Fully deployed since 2003, OnQ supports the Hilton Hotels Corporation "Customer Really Matters" (CRM) strategy and represents information that is available to employees on demand -- prompting them to act on guest "cues" (preferences) to delight customers.  The customized data network AT&T provides enhances Hilton Hotels' ability to act quickly, based on up-to-the-minute intelligence.

"Technology provides a unified customer view of the Hilton Family of Hotels.   Increasingly, the ability to recognize and treat our guests in a way that is defined by their specific travel needs will be enabled through innovation in technology," said Tim Harvey, chief information officer, Hilton Hotels Corporation. "It's essential that our network provider fully understands our business strategy as well as has a team and resources to develop, implement and maintain solutions that match our vision.  With its sophisticated and customized network, AT&T continues to help us enhance and leverage the value of OnQ to our owners, operators, employees, and guests." 

OnQ also represents an integrated suite of tools that "cue" managers to respond decisively to current market conditions and make informed business decisions. The AT&T networking solution helps create operational efficiency and flexibility in the workplace.  Through the secure AT&T BusinessDirectâportal, Hilton employees have online access to real-time reports on network performance and direct connection to electronic billing and trouble management systems.

The Hilton Hotels Corporation networking solution also includes a portfolio of local, long distance, international, and teleconference services, AT&T business Internet Access Service, frame relay to asynchronous transfer mode (ATM) services, and AT&T Toll-Free Services.  The services are provided through a VTNS contract. 

OnQTM is a trademark of Hilton Hotels Corporation.

About Hilton Hotels Corporation

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,100 hotels, resorts and vacation ownership properties.   The Hilton Family of Hotels includes many of the world's best known and most highly regarded hotel brands, including Hiltonâ, Conradâ, Doubletreeâ, Embassy Suites Hotelsâ, Hampton Innâ, Hampton Inn & Suitesâ, Hilton Garden Innâ, Hilton Grand Vacations Clubâ, and Homewood Suites by Hiltonâ. For more information, please visit our corporate website at www.hiltonfamily.com.

About AT&T

For more than 125 years, AT&T (NYSE 'T') has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.