HILTON AUSTIN REPORTS OVER $55 MILLION IN PRE-OPENING SALES ACTIVITY

Downturn In Economy Doesn¡¦t Dampen Excitement Over New Hotel With the scheduled opening of the latest convention hotel in Texas¡¦ Capital City approximately one year away, the Hilton Austin has reported more than $55 million in pre-opening sales activity, placing the sales effort well ahead of schedule.

AUSTIN, Texas -- With the scheduled opening of the latest convention hotel in Texas' Capital City approximately one year away, the Hilton Austin has reported more than $55 million in
pre-opening sales activity, placing the sales effort well ahead of schedule.

Although the local and national economies continue to be challenging, indicators point toward a solid opening for the 800-room state-of-the-art convention hotel. A promising 6,000 room nights already are booked for January 2004, the very first month of the hotel's operation, according to Tyler McDonald, Director of Marketing for the new Hilton Austin.

"We are pleased by the amount of room nights and meeting space currently confirmed for the hotel. The first month we are open we've exceeded our goal substantially with an incredible number of room nights booked -- more than 6,000,¨ said McDonald.

Perhaps the most interesting statistic is that 76 percent of the business booked and being pursued has never considered Austin previously, according to Andy Slater, Hilton Hotels Corporation Area Vice President. Slater points to several primary reasons for Hilton Austin¡¦s early booking successes, particularly with this new business.

"Austin has a very positive reputation in the market. People have heard about the city and they're curious to check it out. Also, the completion of the expansion at the 900,000-square-foot Austin Convention Center combined with the new 800-room adjacent Hilton Austin is very attractive to meeting and convention groups."

Austin has consistently been rated one of the country's best places to live, conduct business and now host a meeting or convention. Outstanding new facilities, the natural beauty of the Texas hill country and a vibrant downtown entertainment district are all reasons for the emergence of Austin as a new convention destination. Bob Lander, President and CEO of the Austin Convention and Visitors Bureau recently reported that the organization set new records for confirmed business during the recently completed 2001-2002 fiscal year. During the past year, amid economic turmoil, the Austin CVB sales force contracted nearly 339,000 room nights, a 35 percent increase over the same period the previous year.

The Hilton Austin will open January 2004, is located adjacent to the newly expanded Austin Convention Center. The hotel features 800 guestrooms, including 25 suites, equipped for both business and leisure travelers, 60,000 square feet of technologically sophisticated meeting and event space, an extensively equipped 16,000 square foot fitness center and Finn & Porter, Liberty Tavern and Java Coast restaurants. The hotel is owned by Austin Convention Enterprises Inc. and operated by Hilton Hotels Corporation.

The Hilton Austin pre-opening office has a dedicated sales team that is rapidly booking meetings, conferences and events to be held early 2004 and beyond. For more information or to book your meeting or event, call 512 482-8000, fax 512 469-0078 or email tyler_mcdonald@hilton.com. For a virtual tour of Hilton Austin and complete details on its facilities, 24 hours a day and 7 days a week, please visit www.austin.hilton.com.

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