PowerLinx, Inc. and Choice Hotels International Begin Strategic Alliance

PowerLinx Teams With One of the Largest Hotel Franchise Companies to Offer High Speed Internet Connectivity

10 May 2004

Tierra Verde, Fla., May 10 - PowerLinx, Inc. (OTC BB: PWLX), the leader in power line communication products, today announced that it has entered into a strategic alliance agreement with Choice Hotels International (NYSE: CHH), one of the largest hotel franchise companies in the world with more than 5,000 hotels, inns, all-suite hotels and resorts open and under development in 44 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Rodeway Inn, Econo Lodge and MainStay Suites brand names.

The PowerLinx-Choice Hotels International agreement is an annual, renewable contract, which appoints PowerLinx as a Choice Endorsed Vendor offering PowerLinx's high-speed internet access and connectivity to Choice Hotels' United States franchisees. PowerLinx becomes one of only four Choice Endorsed Vendors offering these products, which have been mandated for enterprise wide deployment by the end of 2007. In addition, PowerLinx and Choice Hotels International will begin cooperative efforts for the marketing, advertising, and promotion of PowerLinx's internet access solution to their franchisees prior to and through the Choice Hotels national convention, May 12-14 in San Diego, CA.

George S. Bernardich III, PowerLinx Chairman & CEO stated, “The Choice Hotels strategic alliance marks the launch of our hotel connectivity product line truly supporting our, ‘Creating Solutions. Connecting the World,’ motto. Becoming one of an elite group of Choice Endorsed Vendors provides PowerLinx with direct and credible access to a substantial segment of the United States hospitality market through their franchisees. The Company expects to immediately generate revenues from this alliance in the 2nd quarter and the Company expects to announce additional details regarding this exciting new PowerLinx communications application.”

“The PowerLinx total broadband connectivity solution offers the price/performance our franchisees need to cost effectively deliver highly desirable service to their guests,” said Daniel Rothfeld, senior vice-president of Partner Services for Choice Hotels. “As free, high speed Internet access becomes a brand standard at all Clarion and Comfort Suites hotels in June 2004, we are pleased to offer our franchisees the PowerLinx communications solution and its superior performance, ease-of-installation and affordability.”

Michael Ambler, President & COO of PowerLinx added, “PowerLinx's new ‘PowerConnectBB’ product is a perfect fit for hotel installations. It should be noted that in addition to the initial installation revenue, the Company expects to generate recurring revenue through the servicing of the system and the complementary products we expect to offer. The PowerLinx application can be installed in a couple of days without any disturbance to guests or disruption to the hotel's business operation.”

Filed: May 2004, BPL, Press, Co: Powerlinx, Tech: None


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