ATLANTA (July 31, 1997) - With the number of Microtel Inn & Suites across the U.S. growing fast, Atlanta-based parent company US Franchise Systems, Inc. (USFS) has reported the best month ever for its all newly-constructed, interior corridor, limited service hotel brand.

Approaching its 22nd month of operation on August 3, USFS achieved a record five openings and 11 ground breaks during the month of July.

According to USFS president and CEO, Mike Leven, "Today, there are 48 Microtels open and 313 properties in development in 46 states, South America and the Caribbean, the most incredible start for an all new construction economy brand ever."

Leven says that he anticipates having more than 80 Microtel hotels open and at least 60 properties under construction by end 1997. The company's long term goal is 1,000 Microtels under development by the year 2000.

Following is a list of Microtel property openings and ground breaks during the month of July:

Month of July Microtel Property Openings

• Sioux Falls, SD Microtel Inn & Suites (South Dakota's first Microtel, 68 rooms)
• Sandpoint, ID Microtel Inn (Idaho's first Microtel, 71 rooms)
• San Marcos, TX Microtel Inn (33 rooms)
• Irving, TX Microtel Inn & Suites (44 rooms)
• Murfreesboro, TN Microtel Inn (44 rooms)

Month of July Microtel Property Ground Breaks

• Auburn, WA Microtel Inn & Suites (97 rooms)
• North Canton, OH Microtel Inn & Suites (62 rooms)
• North Lima, OH Microtel Inn & Suites (82 rooms)
• Augusta, GA Microtel Inn & Suites (60 rooms)
• Raleigh, NC Microtel Inn (85 rooms)
• Denver International Airport, CO Microtel Inn (100 rooms)
• Joliet, IL Microtel Inn (46 rooms)
• Tallahassee, FL Microtel Inn & Suites (90 rooms)
• Collinsville, IL Microtel Suites (68 suites)
• Kansas City Airport, MO Microtel Inn & Suites (61 rooms)
• Greenville, SC Microtel Inn (99 rooms)

U.S. Franchise Systems, Inc. was formed in August 1995 by Michael A. Leven, a 37-year veteran of the lodging industry, and Neal K. Aronson, former principal of a New York investment firm, when the company purchased the franchise system rights to Microtel Inn, Microtel Suites and Microtel Inn & Suites. Traded on the Nasdaq National Market System using the symbol USFS, the company acquired the franchise rights to Hawthorn Suites, a limited service extended-stay product, in 1996.

Internet users can visit Microtel online at microtelinn.com.