This agreement establishes a development program for the conversion of existing hotels as well as the building of new hotels across Canada.

Peter Murphy, President of Vinings Franchise Systems, Inc., said, "We have found an excellent fit with our Country Hearth Inn partnership, a mid market limited service chain that fits the strategic needs of the northern neighbor.'

'Country Hearth Inns concentration on guest service, suitable market locations, comfortable room size and the value for the guest dollar, form the cornerstone for our development initiative. These are important ingredients for our franchise success. The personal support given from the Country Hearth Inn corporate staff combined with, the implementation of their state of the art reservation system, (22% increase in total booking last year) is a winning formula for growth and success."

Douglas C. Collins, President of Country Hearth Inns said, "We are excited about our partnership with Vinings Franchise Systems, Inc. and look forward to the growth of Country Hearth Inns within Canadian markets. Our further expansion into Canada will open new markets and strengthen the marketing reach of all existing Country Hearth Inn franchisees."