On January 14, 2013, a public relations firm issued a press release regarding a settlement that was entered into last fall between Host Hotels & Resorts, Robert Koger, Molinaro Koger, and Molinaro Koger's insurance carrier.  The unattributed press release contains several inaccuracies concerning our settlement.
 
Host determined that Koger and his former company, Molinaro Koger, had one remaining asset - their insurance policy, so we settled our litigation against Koger, his company and their insurance company for their policy limits.  Our settlement did not discharge the other defendants in the case, Berkeley, B2B3, Scioto, and Dearborn.  We fully intend to continue to pursue those entities and third parties to collect the full amount of our loss -- $22.8 million.
 
In addition:  

• The Montgomery County Circuit Court never vacated the judgment.  The default judgment remains in place.  All that was filed was a notice by Host, Molinaro Koger, and Koger acknowledging that the judgment was partially satisfied given the payment, but only as to Defendants Koger and Molinaro Koger. 
  

• The Montgomery County Circuit Court entered both default and summary judgments in favor of Host.  In granting Host's motion for summary judgment, the court considered hundreds of pages of incriminating facts presented by Host.  Koger and his company never even responded to Host's claims.  It is inaccurate to say that the judgment was awarded "for a discovery sanction." 
  

• The settlement was not between Host and "the Koger entities."  It was only between Host, HCC, Robert Koger, and Molinaro Koger. 
  

• The settlement value was approximately $1.7 million, not $1.55 million. 
  

• The language in the agreement acknowledging no admission of liability is limited to "Party," which is defined to be Host, HCC, Koger, and Molinaro Koger.  The press release inaccurately notes that this language applies to "any party," which can be interpreted to extend to all parties in the case, including the non-discharged Koger entities.

ABOUT HOST HOTELS & RESORTS  
Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 104 properties in the United States and 15 properties internationally totaling over 64,000 rooms. The Company also holds non-controlling interests in a joint venture in Europe that owns 19 hotels with over 6,100 rooms and a joint venture in Asia that owns one hotel with approximately 300 rooms in Australia and a minority interest in seven hotels with approximately 1,750 rooms in India, two of which recently opened in Bangalore and five that are in various stages of development in two cities. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, Le Meridien®, The Luxury Collection®, Hyatt®, Fairmont®, Four Seasons®, Hilton®, Swissotel®, ibis®, Pullman®, and Novotel®* in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company's website at www.hosthotels.com.