LODGIAN, INC.
3445 PEACHTREE ROAD
ATLANTA, GA 30326
www.lodgian.com
[GRAPHIC OMITTED]
NYSE : LOD
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AT LODGIAN, INC. AT THE FINANCIAL RELATIONS BOARD/BSMG
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Robert Cole Thomas Eppich Leslie Hunziker Georganne Palffy
Chief Executive Officer Chief Financial Officer General Information Analysts/Investors
[email protected] [email protected] [email protected] [email protected]
(404) 365-3800 (404) 365-4469 (312) 640-6760 (312) 640-6768
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FOR IMMEDIATE RELEASE
WEDNESDAY, DECEMBER 27, 2000
LODGIAN SIGNS EXCLUSIVITY AGREEMENT WITH EDGECLIFF HOLDINGS
ATLANTA - DECEMBER 27, 2000 - LODGIAN, INC. (NYSE: LOD) announced today that it
has entered into an Exclusivity Agreement with Edgecliff Holdings, LLC. As
previously announced, on December 10, 2000, Edgecliff made a proposal to acquire
Lodgian for $4.75 per share in cash, subject to certain conditions, including
completion of due diligence. The key points contained in the exclusivity
agreement with Edgecliff are as follows:
o Lodgian has agreed to give Edgecliff an exclusive 60-day period during
which the two parties will attempt to negotiate a definitive
agreement, and Edgecliff will complete its due diligence review;
o Edgecliff has agreed not to make an offer to purchase the Company at
any time during the next 12 months for less than $4.75 per share;
o Lodgian may continue to sell specified assets during the exclusivity
period;
o Lodgian is permitted to consider other unsolicited offers for the
Company if the Lodgian board concludes that such offers are superior
to Edgecliff's proposal;
o Lodgian is not obligated to reimburse Edgecliff for any of its
expenses, nor is Lodgian obligated to pay any break-up fee should the
Company pursue another transaction.
ABOUT LODGIAN
Lodgian, Inc. owns or manages a portfolio of 114 hotels with approximately
21,400 rooms in 32 states and Canada. The hotels are primarily full service,
providing food and beverage service, as well as meeting facilities.
Substantially all of Lodgian's hotels are affiliated with nationally recognized
hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Sheraton, and
Hilton.
Lodgian's common shares are listed on the New York Stock Exchange under the
symbol "LOD". Lodgian is a component of both the Russell 2000(R) Index,
representing small cap stocks, and the Russell 3000(R) Index, representing the
broader market.
FORWARD-LOOKING STATEMENTS
Note: Statements in this press release that are not strictly historical are
"forward-looking" statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks, which may cause the
Company's actual results in the future to differ materially from expected
results. These risks include, among others, the failure to complete a
transaction for the sale of the Company with Edgecliff or any other party;
competition within the lodging and contract service industries; the relationship
between supply and demand for hotel rooms; the effects of economic conditions;
issues associated with the ongoing integration of the former Servico, Inc. and
Impac Hotel Group, LLC; the acquisition and renovation of existing hotels and
the development of new hotels; operating risks; the cyclical nature of the
lodging industry; risks associated with the dependence on franchisers of the
Company's lodging properties; and the availability of capital to finance planned
growth, as described in the Company's filings with the Securities and Exchange
Commission.
FOR MORE INFORMATION ON LODGIAN TOLL-FREE VIA FAX,
DIAL 1-800-PRO-INFO (1-800-776-4636),
FOLLOW THE VOICE MENU PROMPTS AND ENTER THE COMPANY TICKER LOD (OR 563)
OR VISIT THE LODGIAN PAGE ON THE FRB WEB SITE AT WWW.FRBINC.COM
VISIT LODGIAN AT www.lodgian.com
