"With our 50th opening, we are starting to reach critical mass for the Hawthorn brand," said Mike Leven, president and chief executive officer of U.S. Franchise Systems. "We will continue to target business and leisure travelers in high profile markets, testament to Hawthorn's economic vitality and desirability."

Since USFS acquired the franchise rights to Hawthorn, the brand has continued to expand as a national player, opening more properties and developing in major markets across the country. With the pipeline of new transactions at its highest level ever, the chain has grown to 247 properties open or in development.

"During 1998, Hawthorns opened everywhere from Philadelphia to Tel Aviv," Leven said. "Next year will see even greater expansion, as we open in such high profile, high-barrier-to-entry locations as Chicago, suburban Boston, Denver, San Diego and Washington, D.C."

In addition, Hawthorn continues to benefit from participation in the Spirit Reservation System which also operates Hyatt's Worldwide Reservation Service. During the first nine months of 1998, the System contributed 25.6 percent of room nights for hotels open more than one year, compared with 25.2 percent for the same period last year. The brand recorded a 98 percent guest satisfaction rating for the month of November 1998.

Hawthorn Suites LTD. Atlanta/Northlake

Hawthorn Suites LTD. is a brand extension of Hawthorn Suites, the lodging concept targeted to business travelers attending training classes and business meetings on extended stay or short term travel.  Atlanta's newest Hawthorn, ideal for shorter trips as well as extended stay, offers complimentary hot breakfast buffet daily and social hour on Wednesday, plus an array of guest amenities and business services.

Located on Crescent Center Parkway between the Lawrenceville Highway and LaVista Road exits off the I-285 interchange, Hawthorn Suites LTD. Atlanta/Northlake offers 111 studio suites with refrigerators, microwaves, coffeemakers, two-line telephones with modem port, and extended cable televisions with movie channel and VCP. In addition to complimentary breakfast and social hour, the hotel offers free daily newspaper and passes to the Tucker Fitness Center, heated outdoor pool, guest laundry and valet service, and meeting facilities. The hotel is centrally located within nine miles of downtown Atlanta, seven miles of Stone Mountain, 12 miles of the Georgia Dome and Turner Field, and 17 miles of Hartsfield International Airport. Senior property management includes David Farlow, general manager, and Sophia Aikens, sales manager. There are currently two additional Hawthorn Suites properties in the Atlanta area at 1500 Parkwood Circle, NW and 2030 Peachtree Rd., Buckhead. A Hawthorn Suites Golf Resorts in Conyers is scheduled to open mid-1999.

About Noble Investment Group

Noble Investment Group, Ltd. is a real estate development and management company with properties in Alabama, Florida, Georgia, North and South Carolina.  The company owns and operates such hotel flags as Courtyard by Marriott, Hampton Inns, Hilton Garden Inn, Holiday Inn, Homewood Suites, Springhill Suites by Marriott, and brands from Choice Hotels.

Dr. Bharat Shah, president, formed Noble Investment in 1992 as the consolidation to the hotel companies he began in 1979. As executive vice president, his son, Mit Shah, is expanding the company's portfolio to 30 hotels by end-1999.

About U.S. Franchise Systems

Atlanta-based U.S. Franchise Systems was formed in 1995 by Mike Leven, a 38-year veteran of the lodging industry, and Neal Aronson, former principal of a leading New York investment firm.  USFS' three brands include Microtel Inn Suites, the all-newly constructed, interior corridor, budget hotels, Hawthorn Suites, and Best Inns  Suites, a mid-level economy brand.  USFS also offers hotel management services to its franchisees.  The Company trades under the symbol USFS on the Nasdaq National Market.

Certain of the above statements are forward looking statements that involve risks and uncertainties. Actual results could differ materially as a result of a variety of factors, including competitive developments, and risk factors listed from time to time in the Company's SEC reports.