The announcement was made by Mike Leven, USFS� chairman and chief executive officer, and formerly president.  �Romaniello is the best in the business and continues to rewrite the record books as the impetus behind U.S Franchise Systems� aggressive expansion strategy. As president and COO, his tremendous drive, business acumen and creativity will provide our Company with extraordinary leadership, values and results.�  Business Travel News� May 29, 2000 issue recently listed USFS as the nation�s 10th largest hotel company in terms of numbers of hotels.

Continued Leven, �In addition, with Steve�s appointment and USFS� new strategic partnership with the Pritzker family, I will be able to focus more on acquisition opportunities and the Company�s development over the long term.�  On June 2, 2000, USFS announced that it had entered into a definitive agreement with interests of the Pritzker family of Chicago to effect a recapitalization of the Company. 

Romaniello, age 33, has overseen USFS� administration and operations departments, responsible for the licensing and franchise services for all of the Company�s brands since 1999.  In addition, since the Company�s formation in 1995, he has headed up the franchise sales and development departments, supervising a team of 48 regional directors and associates. 

Before joining USFS, Romaniello was Holiday Inn Worldwide�s youngest vice president, responsible for franchise sales in the U.S., Canada and the Caribbean, as well as for the franchise services, support and training for 1,700 hotels in the region operating under the Holiday Inn and Crowne Plaza brands.  Under his direction, Holiday increased its franchise sales from 60 in 1991 to 300 franchises in 1995.  

From 1988 to 1991, he held various positions with Days Inn of America.  After serving as brand manager of the Daystop product, he became regional director of franchise sales in New England, where he set company-wide sales performance records.  By age 23, he was promoted to vice president of franchise sales, regularly exceeding sales quotas and contributing to a world record of 415 franchises sold in one year.
A 1988 graduate of Tufts University, Romaniello resides in Atlanta with his wife and son.

Atlanta-based U.S. Franchise Systems, franchises Microtel Inns & Suites, a chain of all newly-constructed, budget hotels, Hawthorn, a predominantly upscale extended-stay chain, and Best Inns & Suites, an economy/mid-priced chain. 

Certain statements in this press release, including statements about the proposed recapitalization transaction, constitute �forward-looking statements� within the meaning of the Private Securities Reform Act of 1995.