Hilton Focuses on the Environment

. October 14, 2008

BEVERLY HILLS, CA, April 22, 2008. At Hilton Hotels Corporation, protecting the environment is a top priority. Responsible environmental activity is good for both our business and the community. Hilton has developed a comprehensive company-wide policy to promote business practices that help preserve the environment. We provide guidelines for all of our facilities, and our goals are to "Reduce - Reuse - Recycle" as much as we can.

Water Conservation

Nearly every hotel within our Family of Hotels takes part in our "Green Program --Conserve to Preserve." By asking our guests when they would like their sheets and towels changed, we save over 12 million gallons of fresh water a month while also reducing waste water and the use of chemicals and energy resources. The Green Program enables our guests to decide when the room attendant will change the bed linens. Upon check-in to the hotel guests are informed (usually by a card placed on the side of the bed) that the bed linens are fresh and clean and that the sheets will typically be changed on each third night of their stay. If a guest elects, they can request to have their sheets changed daily by simply placing the card on the bed or calling housekeeping or the guest service hotline. Thereafter, the room attendant will provide a change of sheets daily.

As part of the Green Program, another information card is placed on the towel rack along side clean towels. If a guest elects, they can re-hang the used towels on the rack and they will not be laundered daily. If the guest would like the towels changed, they simply place the towels on the floor or in the bathtub. The room attendant will then replace the used towels with clean fresh ones daily.

Laundering linens for our hotels uses an enormous amount of water. Hilton continues to implement programs to provide the latest in laundering equipment that utilize the greatest water reduction technologies. By investing in state-of-the-art equipment we have reduced the amount of water used to clean every pound of linens from approximately two (2) gallons of water downward to one (1) gallon. For example, full service occupied rooms on average use 11.5 pounds of linens per room, so a single large, fully-occupied hotel (1500 rooms) with a typical stay of two nights can reduce water usage, through implementation of these programs, by over 17,000 gallons during the two day period.

HHC also has installed restricted-flow showers in thousands of guest rooms within its hotels, as well as automated faucets and toilets located within restrooms dedicated to public areas of hotels.

Electrical Energy Conservation

Several years ago, Hilton implemented an energy efficient lighting retrofit program for its guest rooms. By using state-of-the-art compact fluorescent and other lighting technology, we provide an environment that our guests desire while significantly reducing our use of the natural resources that are utilized to power these products. As an example, the average guestroom has 750 watts of lighting using incandescent bulbs. After our retrofit the room has approximately 220 watts for a reduction of 70%, while actually increasing the level of light, making the room brighter for our guests. These company-wide efforts over the past decade have allowed us to conserve millions of watts of electricity, on an annualized basis, without impacting the comfort of our guests.

Hilton is also actively evaluating and implementing additional "green" technologies in our facilities including solar technology, co-generation, and fuel cells use as they become increasingly more affordable and reliable. These technologies will allow us to further decrease our dependence on current energy providers and resources.

The Family of Brands Exterior Identity Program has moved completely away from completely away from neon tubing which can contain Mercury. Building signs are now virtually 100% LED which is environmentally friendly. Further, we are moving toward electronic ballasts to power fluorescent sign lighting which reduces energy consumption and in some instances, circuitry.

We are moving toward R-134A refrigerant in large chillers which is an HFC refrigerant rather than a CFC which contains chlorine and will be phased out over time. We are evaluating R-410A which is a refrigerant for the future.

Central Plants for new large hotels use Variable Frequency Drives to reduce power consumption in off peak hours;

HGVC hotels use water source heats pumps on specific projects which inherently have heat recovery capabilities.

Recycling

Hilton is committed to preserving our environment and in the early 1990's, instituted the initial company recycling program guidelines, which provided training and specific instructions on how to start and manage a successful recycling program. This program has recently been incorporated into our Engineering manual, and remains in the Housekeeping manual. Both are available to all our Family of Hotels through our internal Intranet site.

One area that is getting increased attention is in-room recycling. Most of the materials collected in guest rooms are recyclable items such as cans, bottles, newspapers, magazines, and office paper. We recently formed a team to re-examine our current efforts to see how we can improve these in-room programs, and give our guests the opportunity to participate.

The hospitality industry has the potential to dramatically reduce the amount it contributes to our landfills. Hotels generate large quantities of recyclable plastics, cardboard, aluminum and steel cans, glass and cooking oil as well as foodstuffs that can be recycled. Through our combined efforts we can all make a substantial and favorable impact on our environment, reducing the waste stream to landfills and related energy usage transporting and processing these products.

Preserving the Environment

Our team members also play a role by participating in various communities outreach projects, such as planting trees, cleaning beaches and undertaking other activities that help restore our natural resources. We believe that all Americans should take action to protect our environment for today and for the future.

We Care

Hilton's Environmental Program in the

U.K., Europe, Asia Pacific & Africa

The idea developed within the Europe & Africa executive team towards the end of 2005. A need was felt to focus more on containing escalating energy bills. At the same time, an environmental cultural initiative needed to be developed. It was decided to develop a program that would involve all Team Members at all levels.

The program:

Educates Team Members and makes them more aware of environmental issues and how to relate to them personally.

Inspires them enough to take concrete action around the hotel, helping to reduce energy waste, identifying areas of improvement, focusing more on environmental related issues - becoming more proactive instead of relying solely on the hotel engineer for such initiatives.

The program has four focus areas:

Energy efficiency

Waste reduction

Water efficiency

Chemicals

The five pillars of the we care! program are:

Environmental Policy

ITP Guidelines for Sustainable Siting, Design & Construction

Eco-learning

HER (Hilton Environmental Reporting)

HiWay (intranet) as a communication tool

An overall target was set:

2006: reduce energy consumption by 5% compared to 2005

2007: reduce energy and water consumption by 10% compared to 2005

2008: target chemicals, energy & water

2009: target waste, chemicals, energy & water

Just in the U.K. and Ireland, 30,141 low-energy lamps were fitted and 10,645 water saving devices have been installed. In 69 of its properties in the greater region, the company offset electricity equal to 64,000 tons of CO2 emissions - 56% of the properties' carbon footprint -- by introducing carbon-free electricity.

Hilton Reservations and Customer Care

Work at Home Initiatives

Hilton Reservations and Customer Care (HRCC), Hilton's worldwide network of reservations and customer service contact centers has begun a rapid expansion of their Work at Home initiative. Effectively utilizing advances in technology, HRCC is growing its Work at Home telephone representative workforce to 700 team members by end of 2007 and 1,600 team members by the end of 2008.

The vast majority of these Work at Home team members are from the dense traffic urban areas of Dallas, Texas and Tampa, Florida. This initiative will eliminate the daily commute of over 1,500 team members - saving fossil fuels, reducing auto emissions, and relieving traffic congestion.

Individual Hotel/Regional Efforts - International

With 6,500 guest rooms, properties including the Waldorf Hilton, the Trafalgar Hilton and Hilton London Tower Bridge have committed to change to carbon free electricity following an investment of lb4 million in 2006. The 2006 activation led to a reduction of energy consumption of more than 25% in certain hotels across the UK and Ireland. Specifically, the London Hilton has started work on a lb1.25m project that will lead to an estimated lb314k savings.

Hiltons in the U.K. and Ireland plan to reduce their carbon footprint by more than 50% in 2007.

Individual Brand/Hotel/Regional Efforts - U.S.

Hilton Hotels Corporation has partnered with the California Green Lodging Program, sponsored by the California Integrated Waste Management Board and the California Environmental Protection Agency. More than 50 hotels in the state have achieved the Leadership or Participation level.

Hilton Eco-Friendly To-Go Packaging

The Hilton brand in spring 2008 announced eco-friendly to-go packaging available to its hotels systemwide, including a 12 oz. Dixie Insulair EcoSmart Coffee Cup for use in lobby complimentary coffee programs (where available) and all restaurants where the Hilton Breakfast is featured and offers a To-Go menu.

Additionally, the Hilton Food To-Go Box is 6 1/2 X 9 X 4 and is made from 100% recycled board, and the inks and varnishes are biodegradable. Additionally, it is poly-coated on the inside and is FDA approved for direct food contact.

Complementing this packaging is a very upscale Eco-Friendly Hilton Food To-Go Bag measuring 13 X 7 and made from a revolutionary new product called TerraSkin. A tree-free paper made of stone minerals degrades back into its original source, the powder of stone. TerraSkin uses 20-30% less ink and all inks are environmentally friendly (non-toxic). There is no bleaching involved, and the water used in the process of production is a closed loop. The TerraSkin bag is also waterproof.

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