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LODGIAN, INC.
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<PAGE>
FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 19, 2000
LODGIAN RESPONDS TO EDGECLIFF'S MOST RECENT ANNOUNCEMENT
ATLANTA--OCTOBER 19, 2000--LODGIAN, INC. (NYSE: LOD) announced today that
Edgecliff Holdings' most recent press release contains a number of misstatements
regarding Lodgian's agreement with Whitehall Street Real Estate Partnership,
which Lodgian desires to clarify.
-- Contrary to the Yung group's statements, Lodgian is able to consider
the Yung group's offer and provide due diligence information to the
Yung group simultaneously with its consideration of the Whitehall
proposal as long as the Yung group executes a confidentiality
agreement containing a reasonable standstill period equal to 90 days.
Furthermore, both parties can pursue their due diligence of the
Company simultaneously and before Lodgian enters into a definitive
agreement with either party. "This is what is in our shareholders'
best interest," said Robert Cole, chief executive officer of Lodgian.
"We desire a competitive as well as simultaneous sale process, which
is exactly what we believe Mr. Yung would like to avoid."
-- Contrary to the Yung group's suggestion that Lodgian commence
negotiating a definitive agreement immediately with the Yung group,
Lodgian does not believe it is in the best interests of its
shareholders, who desire to obtain the highest possible price for
their investment, to attempt to negotiate a definitive agreement with
any party prior to completion of diligence by both parties.
-- Lodgian is committed to a full and fair process for the sale of the
Company.
In response to Mr. Yung's statement that the Whitehall agreement is "null and
void," Cole said, "Shareholders should be concerned that Mr. Yung wishes to
terminate the Whitehall agreement and remove Whitehall as a bidder for the
Company. Mr. Young apparently seeks to ensure that he is the only possible
bidder for Lodgian, and if this were to be the case, we believe that
shareholders' interest would be harmed."
ABOUT LODGIAN
Lodgian, Inc. owns or manages a portfolio of 117 hotels with approximately
21,700 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,
Hilton, Doubletree and Westin.
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 termination of the letter of
intent, 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
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