Board Candidates Urge Shareholders to Tell Their Brokers to Vote for French and Coulson.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 15, 2001

Ray French and Paul Coulson, who are waging a proxy contest for election to the Board of Suburban Lodges of America, Inc. (NASDAQ:SLAM) said today that time was short but it is not too late to vote against management at the Suburban Lodges Annual Meeting.

Stockholders should call their brokers and tell them to vote for French and Coulson, the independent candidates for the Board.

They made the following statements regarding key issues in the proxy contest:

-- Sale of the Company

Management suggests that the Company can't be sold for a good

price now because the Company and its bankers tried and didn't

receive any offers worth pursuing. We believe that the sales

process conducted by the present board and its investment bankers 

does NOT establish whether it is a good idea to sell the Company

at the present time. After all, the Board may be demanding a

minimum price for the Company that is substantially above the

price that the majority of shareholders would be prepared to

accept. We believe that shareholders will never know what they

could get for their shares in a sale of the Company until the

sales process is conducted under the supervision of a board of

directors with an independent majority.

-- Asset Sales Strategy

Management claims that a sale of individual assets is no easier

than a sale of the entire Company because there are loan

restrictions on 32 of the Company's 65 hotels. However, that

leaves a majority of the Company's hotels that can be sold:

enough to support a major asset sale program. In addition, based

on the footnotes to the Company's 2000 financial statements, it

appears that the fair market value of the Company's long-term

debt is less than its face amount - this suggests there is room

to negotiate with lenders to permit encumbered properties to be

sold and a portion of the proceeds distributed to shareholders.

We believe that the proceeds of asset sales should be paid

directly to shareholders in the form of special dividends rather

than used to fund a stock repurchase program that increases

management's percentage ownership of the Company. Further, we

believe that the taxation of distributions to shareholders from a

major asset sale program would be favorable to shareholders since

a large portion of such distributions could be a return of

capital which would be taxed as a capital gain, much of this a

deferred capital gain, depending on the shareholder's basis.

-- Long-Term Poor Performance

Management claims that the Company's poor financial results are a

recent phenomenon and caused by its transition from a development

business to a franchise business. However, the truth is that, in

no full year since its IPO, has the Company ever achieved a

return on equity capital (ROE) above the average Yield available

on 1-Year T-bills in each of those years. Conversely, in year

2000, the Company's CEO, Mr. Krischer, received a 116% increase

in his year 2000 cash bonus while Net Income fell by 35%.

If elected, we will not accept any options or fees for serving you as directors. Our single purpose is to increase the price of the stock for all shareholders. We are convinced we have the strategy and plan to achieve that goal. However, we need your vote to make this turnaround happen!

Time is short. Call your broker and instruct him/her to contact Larry Dennedy at Mackenzie Partners (212-929-5239) in order to vote the gold proxy card for Mr. French and Mr. Coulson.

Ray French can be contacted at [phone] or [phone]. Or you can contact our proxy solicitors, Mackenzie Partners, at [phone] (attention: Larry Dennedy).