Whitehall Street Real Estate Limited Partnership XIII and Whitehall Parallel Real Estate Limited Partnership XIII (�Whitehall�) have made a proposal to the Lodgian board to acquire all of the outstanding shares of the Company for a cash purchase price of $4.50 per share, subject to certain adjustments and Lodgian�s right to terminate the transaction if the consideration to be paid to shareholders is less than $4.00 per share. Whitehall is the most recent real estate investment fund sponsored by Goldman, Sachs & Co. The final terms of the transaction must be approved by the Company�s board of directors and would be submitted to a shareholder vote.

Lodgian also announced that it has granted Whitehall an exclusive period of 60 days to conduct confirmatory due diligence and negotiate definitive agreements for the transaction. If at the end of the due diligence period, the Company and Whitehall have not entered into definitive agreements for the transaction, Lodgian will reimburse Whitehall the expenses it incurs in connection with evaluating and pursuing the transaction, up to a maximum of $3,500,000.

Robert S. Cole, chief executive officer of Lodgian, said, �As we have previously communicated, a sale of the Company would be a strategic move that is consistent with our goal of maximizing shareholder value.�

On January 12, 2000, Lodgian announced that it had engaged Morgan Stanley Dean Witter to assist its board of directors in the exploration of strategic alternatives for the purpose of maximizing shareholder value. Morgan Stanley Dean Witter will continue to advise the Company throughout the sale process.

Lodgian, Inc. owns or manages a portfolio of 117 hotels with approximately 21,700 rooms in 32 states and Canada.  

Statements in this press release that are not strictly historical are �forward-looking� statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.