Interstate Committee Recommends Stockholders Reject Shaner Offer

PITTSBURGH— After careful consideration, Interstate Hotels Corp.’s special committee of independent directors and board of directors has unanimously recommended that stockholders of Interstate’s Class A common stock reject the unsolicited partial tender offer by Shaner Hotel Group Limited Partnership and refuse to tender their shares. Those recommendations are based in part on the advice of Merrill Lynch & Co., independent financial advisor to the committee. The committee determined that Shaner Groups offer price was financially inadequate, and stockholders remaining investment in Interstate would be adversely affected and subject to a high degree of uncertainty if the offer were successful. The committee felt the price was inadequate because during 2001, Interstate maintained a strong cash position and commenced management of 20 additional hotels; expanded international operations; formed a joint venture to acquire properties as the market recovers; and redeemed substantially all of Wyndham Internationals 55% non-voting economic interest and converted the Equity Inns leases into management agreements, which enabled Interstate to increase EBITDA. Interstate is mailing its stockholders its Solicitation/Recommendation Statement on Schedule 14D-9 setting forth the formal recommendation of the board and the special committee to reject the partial offer.