HFS INCORPORATED, CENTURY 21 REAL ESTATE CORPORATION AND AMERICA ONLINE
ANNOUNCE ALLIANCE TO CREATE AN EXTENSIVE CONSUMER REAL-ESTATE INFORMATION
SERVICE

First Private Online Broker Network Will Link More than 6,000 Offices

Builds on HFS Incorporated's Strategy of Tapping New Revenue Streams in the
$1 Trillion Housing and Related Services Market

PARSIPPANY, NJ, January 10, 1995 -- Century 21 Real Estate Corporation, a
subsidiary of HFS Incorporated (NYSE: HFS), the world's largest real
estate organization, and America Online (NASDAQ: AMER), the nation's
largest on-line network, today announced the formation of an alliance to
provide a service that will redefine the consumer real-estate market and
link the entire 6,000-strong CENTURY 21AE broker network.

The services will include CENTURY 21 Communities, the most comprehensive
source of consumer information ever developed for prospective homebuyers
about communities across the nation, which will be available to all AOL
members. Additionally, TWENTY-ONE ONLINE, a private network within the AOL
service will be created for the exclusive use of CENTURY 21 brokers and
associates providing broker-to-broker networking and referrals, financial
and other communications with the company, and access to a range of
homeowner services for customers. As part of the agreement the CENTURY 21
system will become a major advertiser on America Online.

Henry R. Silverman, HFS Chairman and Chief Executive Officer stated, "Our
latest alliance with America Online is a major step toward our vision of
the 'virtual home store.' For the shareholders of HFS and America Online
this venture creates a whole new business and brand new revenue sources
from advertising, subscribers and other fees for both companies, who are
uniquely positioned to make it work and take advantage of the rapid
changes taking place in real estate and information technology."

Robert W. Pittman, Chief Executive Officer and Managing Partner of Century
21 Real Estate Corporation said, "This alliance brings together the market
power of America's only true national brand in real estate with the vast
networking capability available through America Online, the most
successful and fastest growing consumer on-line service, to launch real
estate into this new interactive medium."

"This alliance and others we have established will continue to build the
already dominant CENTURY 21AE brand, provide additional leads, increase
our training opportunities, reduce costs and dramatically expand the
services and automation resources available to our broker network."

"We will use this technology to fulfill our pledge to provide services
never before seen in the industry, providing CENTURY 21 brokers and
associates a distinct competitive advantage and offering customers a new
world of convenience and cost-savings. This breakthrough initiative with
America Online furthers our commitment to brokers to be the most
responsive, creative and entrepreneurial company in the real-estate
industry."

President of America Online Services Company Ted Leonsis stated, "This
milestone venture with CENTURY 21 demonstrates America Online's value and
potential not only as an unmatched resource for consumers, but as a
powerful and effective tool for businesses. Through America Online's
creative on-line programming consumers will be able to access valuable
information on communities in which they live or would like to live --
from schools to daycare to health clubs to houses of worship -- and
CENTURY 21 brokers and agents will have the capability to work with one
another, their corporate headquarters and outside vendors to fulfill
customers' needs."

First of New Services Scheduled for Launch in Mid-1996

CENTURY 21 Communities on America Online is scheduled for launch in
Mid-1996 and will allow consumers to access real estate market conditions,
community services and a broad range of other information about home
ownership in cities and towns across America from any networked computer,
whether at home or in CENTURY 21 broker offices.

TWENTY-ONE ONLINE, an exclusive proprietary on-line service within AOL,
will provide CENTURY 21 brokers and sales associates a competitive
advantage as the first real-estate network linked on-line, with access to
benefits not available through any other company. The CENTURY 21 system of
more than 6,000 offices and 80,000 sales associates will be able to
transmit referrals and financial information, interact with their peers
on-line, obtain daily news and information updates, access training
information, and connect with the CENTURY 21 corporate office and its
"quick response team" of business consultants as well as a series of other
information and assistance services.

TWENTY-ONE ONLINE will also allow the CENTURY 21 system to implement its
vision of "one-stop shopping" for real estate and related home services by
providing brokers and agents the ability to access vendors ranging from
mortgages to home improvements, and to complete applications and obtain
these services for customers on the spot.

Pittman stated, "CENTURY 21AE customers will not only be better educated,
but will directly save money, time and effort through our on-line
services. While there will never be any substitute for face-to-face
contact and value-added services of real-estate professionals, customers
will come into CENTURY 21 brokers' offices better informed and more
prepared to begin the process of buying or selling a home or embarking on
a home improvement project. Once there, CENTURY 21 brokers and associates
will be able to offer them a complete range of real-estate related
services, from mortgages to title searches to home improvements, on-demand
and on-line."

"We will also provide brokers new tools to enhance productivity, a pipeline
for nationwide referrals, opportunities to establish peer networks and
mentor relationships, additional leads and more comprehensive and quicker
response to their needs. And with instant access on-line to information
and the unparalleled resources of the CENTURY 21 system, our brokers and
agents will more than ever be the most professional, best informed and
trained in the real estate industry," concluded Pittman.

HFS Incorporated is the world's largest franchisor of hotels and
residential real estate brokerage offices. Its stock is listed on the New
York Stock Exchange under the symbol "HFS." In lodging, the Company has
approximately 4,700 Days Inn, Howard Johnson, Knights Inn, Park Inn,
Ramada, Super 8 and Villager Lodge franchised hotels with approximately
450,000 rooms in the United States, Canada, Latin America and Europe. In
residential real estate, HFS has approximately 6,000 CENTURY 21AE
franchised offices in the United States and fourteen other countries and
territories.

America Online, Inc., (NASDAQ symbol: AMER), based in Vienna, Va., is the
largest and fastest growing provider of online services in the world with
the most active subscriber base. AOL offers its subscribers a wide variety
of services including electronic mail, conferencing, software, computing
support, interactive magazines and newspapers and online classes, as well
as easy and affordable access to services of the Internet. AOL has a
global workforce consisting of more than 3,500 people. Founded in 1985,
AOL has established strategic alliances with dozens of companies,
including Capital Cities/ABC, Viacom, Bertelsmann, Hachette, IBM, Compaq
and American Express. Personal computer owners can obtain America Online
software at major retailers and bookstores, or by calling 800-827-6364.
 
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