Budgethotels (BUDH:OTCBB) today announced that it expects to report significant improvement for the 1st quarter of 2003 compared to the 1st quarter 2002. From a loss of $120,000 on revenue of $180,000 for the first quarter of ?02 we are now expecting a breakeven or possibly a small profit for the 1st quarter 2003, said William Marshall Chairman and CEO.

On the cost side, Budgethotels has significantly reduced management overhead expenses by shifting from salary-based to performance based compensation packages. Also, the significant ongoing financial costs incurred in developing a world-class hotel reservation booking site have now been largely absorbed.

On the revenue side, the Company is recording record traffic on its hotel reservation site www.budgethotels.com and continues to expand its clientele on its successful InfoCenter hotel advertising boards located throughout North America. These two factors are driving the trend of increasing revenues on a reduced cost base. The Company expects to release final Q1 -03 financial results by March 31, 2003.

"We can finally see the light, said Marshall, "and we expect that from now on profitability will not just be a goal but a commitment to our shareholders that we intend to keep.

About Budget Hotels

Budgethotels Network, Inc. provides services for the "budget" traveler, primarily through two compatible networks; (1) Reservation Centers, and ( 2) Online Travel Reservations. (1) Reservation Centers - Advertising is sold by the Company on its illuminated Reservation Center boards to travel industry suppliers, primarily hotels. These boards are presently located in 86 transportation terminals placed under long term, exclusive agreements with Greyhound, Amtrak, Via Rail and the New York Port Authority. These boards at current utilization rates of 25% are generating more than 600,000 room night bookings annually and the Company is test marketing additional methods to increase their revenues from this source. (2) Online Travel Reservations The Company's primary website, www.budgethotels.com, features more than 45,000 hotels, motels, youth hostels and bed & breakfast locations across the USA, Canada and throughout the world. More than 61 million households in the United States will book travel online this year according to Forrester Research. Forrester expects online hotel bookings to double over the next 4 years to $7.7 billion from $3.8 billion. Already travel is by far the No. 1 activity among internet consumers. According to ComScore Networks, travel related purchases accounted for about 43 percent of online consumer spending in the first half of this year. In some weeks more travel is purchased online than every other category combined.
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On behalf of the Board:

William Marshall CEO

For more information contact

Raymond Irvine

1.877.633.1337

investors@budgethotels.com

Certain statements contained in this press release that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words "expect," "predict," "project," "anticipate," "believe," "estimate," "intend," "plan," "seek" "commit" and similar expressions are generally intended to identify forward looking statements. Because these forward looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Budgethotels undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.