In a related management reorganization, Park Plaza announced that Michael G. Medzigian, Managing Director of Dallas-based Olympus Real Estate Corporation, which represents a majority ownership interest in Park Plaza International, has been named President and Chief Executive Officer of the Company, with Michael Vernon, formerly Chief Financial Officer of Red Lion Hotels, continuing to serve as the Company's Executive Vice President and Chief Operating Officer. Messrs. Read and Orenstein will continue to serve as members of the Company's Board.

Mr. Read said: "With Olympus's assistance over the past year, Park Plaza has made significant progress, completing substantial acquisitions in Europe, Asia, and North America, as well as the addition of many talented professionals to the corporate staff. Strategic discussions over the past several weeks have culminated in a retooled growth strategy for the company, under which Frank and I will focus on international growth and development, an area I have always been most comfortable and successful with, while our partner, Olympus, will drive the domestic growth of the company. We believe this strategy will maximize near-term growth of Park Plaza as we work as brand partners with Olympus to achieve our mutual objectives of a strong, widely distributed global brand."

David B. Deniger, President and Chief Executive Officer of Olympus Real Estate Corporation, said: "Since Olympus invested in Park Plaza last year, we have been focused on an initial investment strategy designed to position the company for worldwide growth. With that process largely complete, it is time to direct our energies towards focused domestic and international brand development and asset growth strategies. Michael Medzigian and Michael Vernon bring a wealth of hospitality industry experience to our domestic business and we are confident that together they will be successful in maximizing the value of our North American properties and brand development. We also look forward to working with Jonathan Read and Frank Orenstein as they apply their many years of international experience to building the value of Park Plaza's international operations."

Founded in 1986, Park Plaza International Hotels, Inns and Resorts is a full-service hotel company providing operating, management, marketing, licensing and design services. Currently ranked as the 20th largest hotel management group worldwide, Park Plaza has more than 180 hotels in operation or under contract in 21 countries in Europe, Asia, the Middle East, Central America, Africa, the United States and Canada. Park Plaza International Hotels, Inns and Resorts includes the Park Inn International chain and the upscale Park Plaza Hotel brand. In October 1997, Olympus Real Estate Corporation acquired a majority interest in Park Plaza.

Olympus Real Estate Corporation, with offices in Dallas and New York, invests in real estate equities, mortgages and securities in major markets throughout the United States. Olympus was formed in May 1994 by Hicks, Muse, Tate Furst Incorporated and David B. Deniger. Since its formation, Olympus has completed nearly $3 billion in real estate investments including numerous hotels and commercial, residential and golf-related projects throughout the United States and abroad. Hospitality investments to date have included The Boca Raton Resort and Club, The Ritz-Carlton Rancho Mirage in southern California, The Fairmont Copley Plaza in Boston, The Cheeca Lodge in the Florida Keys, The Algonquin Hotel in midtown Manhattan, and La Posada in Santa Fe.