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Columbia Pacific Opportunity Fund Offers to Acquire
Red Lion Hotels at $9.50/Share

Red Lion Hotels Corporation Receives Unsolicited Indication of Interest
from Columbia Pacific Opportunity Fund, LP 

SPOKANE, Wash., June 30, 2008 - Red Lion Hotels Corporation (NYSE:RLH) (the "Company") today said that it has received an unsolicited, non-binding and conditional preliminary indication of interest to acquire the Company from Columbia Pacific Opportunity Fund, LP ("Columbia"). Columbia also filed a Schedule 13D disclosing the preliminary indication of interest. The Company said that its Board of Directors, consistent with its fiduciary duties and in consultation with its financial and legal advisors, will evaluate the preliminary indication of interest carefully and promptly, and is committed to pursuing the course of action that it believes will maximize value for all of the Company's shareholders.

On June 27, 2008 Columbia Pacific Opportunity Fund LP, which holds 2.31 million shares or 12.7% of Red Lion Hotels Corp. (RLH), announced that it submitted a non-binding offer to acquire company's shares at cash price of $9.50 per share.

This offer price represents nearly 35% premium to the last closing price of $7.05. In the after-hours trading, the company's stock jumped 27.66% or $1.95, to $9.00. Columbia Pacific specified that its proposed transaction is in the best interests of the shareholders, and that Red Lion would be better able to realize enhanced value as a private entity. 

About Red Lion Hotels Corporation:
Red Lion Hotels Corporation is a hospitality and leisure company primarily engaged in the ownership, operation and franchising of upscale and midscale hotels under its Red Lion(R) brand. As of March 31, 2008 the RLH hotel network was comprised of 53 hotels located in nine states and one Canadian province, with 9,266 rooms and 441,640 square feet of meeting space. The company also owns and operates an entertainment and event ticket distribution business. 


Red Lion Hotels Corporation
Anthony Dombrowik, Chief Financial Officer
Corporation, +1-509-777-6372
Web site:

Also See: Red Lion Reports a $4.5 million Net Loss for the 1st Qtr 2008, System Wide Occupancy 51.2% Down from Prior Year 53.6% / Hotel Operating Statistics / May 2008


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