According to Lodgian President and Chief Executive Officer, Robert S. Cole, all three properties failed to fit into Lodgian�s long-term product strategy. �These specific property sales and our overall strategy behind asset sales are being driven by a desire to reduce the overall debt of the Company, consolidate the number of brands in our portfolio and rid the portfolio of under-performing hotels. The approximate combined capitalization rate of this transaction was 10%.�

The first two properties sold were hotels�the 203-room Comfort Inn San Antonio, TX, and Holiday Inn Airport West in St. Louis, MO, with 249 rooms. An office building in Silver Spring, MD, physically connected to the Holiday Inn Silver Spring, was the final asset sold. The office building will continue to share the joint parking deck and promenade area with the hotel which remains owned and operated by Lodgian.

Lodgian, Inc. owns and operates a portfolio of over 125 hotels with more than 24,000 rooms in 35 states and Canada.  The hotels are primarily full service, providing food and beverage service as well as meeting facilities. Lodgian is the second largest Bass Hotels Resorts franchisee and one of Marriott International�s largest franchisees. Substantially, all of Lodgian�s hotels are affiliated with nationally recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Hilton, Radisson, andSheraton. For more information on Lodgian call 404/364-9400 or visit www.lodgian.com.  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® Index, representing small cap stocks, and the Russell 3000® Index, representing the broader market.