USinternetworking, Inc.

ANNAPOLIS, Md. / USinternetworking, Inc. (USi), the first and leading Application Service Provider (ASP), today announced that Sunburst Hospitality Corporation SNB has signed a five-year contract with USi. The terms of the deal, which is the first PeopleSoft outsourcing agreement with a mid-market company, call for USi to deliver the PeopleSoft Financials application over the Internet to Sunburst, a leading developer, owner and operator of hotels.

Through USi's outsourcing service, Sunburst will gain rapid implementation, around-the-clock applications management and customer care, increased security, real-time data replication and disaster recovery. Sunburst, which manages its hotels under the brands franchised by Choice including MainStay Suites, Comfort Inn, Quality, Clarion, Sleep Inn, Rodeway, and EconoLodge, will also benefit from ease in upgrading to new PeopleSoft Financials versions. USi is a member of the PeopleSoft Certified Outsourcing Partner Program.

"Because we had already experienced the challenges of maintaining and supporting the financial applications in-house, but needed the functionality that only PeopleSoft can deliver, we were pleased to learn that USi provides everything--including hardware, software, communications infrastructure, customization expertise and ongoing support--as a controlled-cost solution, " said Charles Warczak, Vice President of Finance at Sunburst. "The USi model also provides the consulting we need for a successful upgrade to PeopleSoft Financials 7.5, with the 24x7 support we want for ongoing peak performance."

"USinternetworking and PeopleSoft are providing companies with an entirely new way to take advantage of enterprise application software," said John Haworth, Director of Outsourcing Strategy at PeopleSoft. "By running their PeopleSoft software on USi's Application Service Provider model, Sunburst will be able to outsource their IT needs via the Web, and in turn focus on what makes them unique and competitive as a company."

"We are taking total responsibility for their financial applications' management by providing easy upgrades, rapid implementation, and high quality of service so that Sunburst can focus on its core business," said Christopher R. McCleary, Chairman and Chief Executive Officer for USi. " Sunburst is a visionary leader in the hotel industry and this reputation is supported by the fact that it is among the first to leverage the latest Internet technology to its full advantage."

"With the increasing complexity of enterprise applications and the growing shortage of IT workers, the tremendous growth that the application service provider market has experienced is not surprising," said Joshua Greenbaum, Principal, Enterprise Applications Consulting, Berkeley, Calif. "Sunburst is just one of the many companies that are looking to realize the benefits of outsourcing enterprise applications."

About Sunburst Hospitality Corporation

Headquartered in Silver Spring, MD, Sunburst Hospitality Corporation is a leading owner and manager of nationally recognized full-service, limited-service and extended stay hotels, with a portfolio of 95 hotels in existence and under development. The company was created in October 1997 as a spin-off of Choice Hotels International CHH, and manages its hotels under the brands franchised by Choice including MainStay Suites, Comfort Inn, Quality, Clarion, Sleep Inn, Rodeway, and EconoLodge.

About USinternetworking, Inc.

Headquartered in Annapolis, MD, USi is the world's first and leading Internet Managed Application Provider(SM) (iMAP), serving businesses' demands for improvements in the management of their information technology operations. USi cost-effectively delivers leading packaged application software seamlessly integrated with specialized Internet communications. The iMAP Portfolio includes the USi Enterprise Relationship Management Solutions Suite powered by Siebel SEBL, the USi Human Resources Solutions Suite powered by PeopleSoft PSFT, the USi Financial Management Solutions Suite powered by PeopleSoft, the USi Electronic Commerce Solutions Suite powered by Microsoft MSFT and BroadVision(R) BVSN, the USi Enterprise Data Warehousing Solutions Suite powered by Sagent, and USi Web Site Management Solutions. USi maintains total responsibility for ensuring every aspect of the iMAP service is working at an optimum level for customers. The USi Global Network, a Cisco-Powered Network CSCO, was engineered specifically to provide the highest performance delivery for web-based content and information to users worldwide. Through an integration of the computing platform and the routed infrastructure, the USi Global Network is the most advanced in the world and connects the Internet backbones of North America, Europe and Asia. USiView(SM), a specialized network management system, monitors and proactively manages the entire network end-to-end. For more information, USi's website can be found at www.usi.net.

Internet Managed Application Provider (iMAP) and USiView are service marks of USinternetworking, Inc. All other trademarks are the property of their respective owners.

Joanne Hellebrand
(410) 897-4532