Press Release
December 11, 2000
SILVER SPRING, MD -- Sunburst Hospitality Corporation (NYSE:SNB), a hotel ownership and management company, has
announced that it has set 10:30 am EST on January 4, 2001 as the date for a special meeting of the stockholders
being called to vote on a Recapitalization Agreement.
Sunburst had previously set November 22, 2000 as the record date for stockholders entitled to vote at the special
meeting. The meeting will be held at the Quality Suites Hotel, 3 Research Court, Rockville, Maryland.
Proxy cards and a proxy statement will be mailed to all stockholders (as of the November 22 record date) on December
9. The proxy statement contains important information about the transaction, the conflicts of interest of certain
directors and officers, and a copy of the Recapitalization Agreement. Stockholders are advised to read the proxy
statement carefully before deciding how to vote. The proxy statement can also be found at the U.S. Securities and
Exchange Commission's web site at www.sec.gov.
If the Recapitalization Agreement is approved by the requisite number of stockholders, the owners of publicly-held
shares will receive $7.375 per share in cash. Payment will be made following the completion of certain paper work
the stockholders will receive from the transfer agent, and will be made approximately 30 days after the special
meeting.
Sunburst also announced that it has reached an agreement in principle to settle the stockholder lawsuits filed
regarding the Recapitalization Agreement, subject to approval of the Delaware Chancery Court for New Castle County.
The prepared settlement required Sunburst to include additional disclosure in the proxy statements that will be
mailed to stockholders about December 9.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe
harbors created thereby.
Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without
limitation, future action or inaction by the Board of Directors and stockholders of Sunburst and court approval
with respect to the matters referred to in this press release.
Although Sunburst believes that the assumptions contained herein are reasonable, any of the assumptions could be
inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press
release will prove to be accurate. Sunburst does not assume any obligation to update any forward-looking statements
contained in this release.
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Contact:
Sunburst Hospitality Corporation
Douglas H. Verner, 301/592-3895