ShoLodge Authorizes Use of Up to an Additional $3.0 Million for Repurchase of Common Stock

Press Release: ShoLodge Inc.
November 12, 2001
HENDERSONVILLE, TN -- ShoLodge, Inc. (Nasdaq/NM:LODG) Friday announced that the Board of Directors has authorized the use of up to $3.0 million for the repurchase of additional shares of ShoLodge's common stock. The purchases, including block purchases, are to be made from time to time in the open market at prevailing market prices, or in privately negotiated transactions at the discretion of the Company's management. The Company currently has 5,173,278 shares of common stock outstanding, which were trading at $4.00 per share at the close of business Thursday. No time limit has been placed on the duration of the repurchase plan, and the plan may be discontinued by the Company at any time. The Company has completed its stock repurchase plan for up to $20.0 million of its common shares announced in July, 1999.

Additionally, the Board of Directors has previously authorized the use of up to $25.0 million for the repurchase of convertible subordinated debentures due 2004 and up to $15.0 million for the repurchase of senior subordinated notes due 2006 and 2007. These repurchase programs continue in effect at this time.

This press release contains forward-looking statements relating to certain matters which reflect management's best judgment based on factors currently known and involve risks and uncertainties. Actual results could differ materially from the anticipated results or expectations expressed in the Company's forward-looking statements. Forward-looking information provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 should be evaluated in the context of these factors which are contained in the Company's Securities and Exchange Commission (``SEC'') filings, including its periodic reports filed under the Securities Exchange Act of 1934, as amended. Copies of these filings are available upon request from the Company. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

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Contact: 

     ShoLodge Inc., Hendersonville
     Bob Marlowe
     Chief Financial Officer
     615/264-8000