�The signing of the stipulation by Mr. Gerber is only the beginning of the prosecution of this lawsuit,� said Stanley S.  Arkin, counsel to Schrager Hotels. �We are now going to go into extensive and probing discovery to determine if his representations are true and the exact nature of his business relations with his brother, Scott.� In the stipulation signed by Mr. Gerber and ordered by Justice Beatrice Shainswit of New York State Supreme Court, Mr. Gerber said that he would hold no interest in the Wet Bar at the New W Hotel in New York or in a bar at Park Sunset Hotel in West Hollywood while the lawsuit is pending.

Mr. Gerber operates Morgans Bar at Schrager�s Morgans Hotel, 237 Madison Avenue, and the Whiskey Bar and Mezzanine Bar at Schrager�s Paramount Hotel at Broadway and 46th Street. In West Hollywood, Mr. Gerber operates Skybar at Schrager�s Mondrian Hotel on Sunset Boulevard.

Last Wednesday, Mr. Schrager sued Mr. Gerber, charging that he had violated his contracts with Schrager Hotels by entering into business agreements with Schrager Hotels� competitors Starwood Hotels and Resorts Worldwide, Inc., which operates the New W Hotel in New York, and Outrigger Lodging Services, Inc. which operates the Park Sunset Hotel, located directly adjacent to the Mondrian Hotel.

Additionally, the lawsuit charges that Mr. Gerber impermissibly made Starwood and two of its officers, chief executive officer Barry S. Sternlicht and chief operating officer Ted Darnell, principals in the Gerber holding company that operates Morgans Bar, the Whiskey Bar and the Mezzanine Bar.