ATLANTA— Lodgian reports that at its confirmation hearing held on November 5, 2002, the U.S. Bankruptcy Court for the Southern District of New York confirmed the companys “First Amended Joint Plan of Reorganization” relating to subsidiaries owning 86 hotels. David Hawthorne, president/CEO of Lodgian, credited the confirmation of the reorganization with the fact that franchisors, vendors, lenders and employees had supported the company over the past year. The plan will become effective and the company will emerge from Chapter 11 on the finalization of its exit financing with Merrill Lynch. While Lodgian said “there can be no assurances,” the company anticipates that the effective date will occur within 30 days of the confirmation date. On the effective date of the plan, the existing equity shares will be cancelled and the bondholders and general unsecured creditors will receive a combination of preferred and common stock, while the CREST holders and existing common shareholders will receive a combination of warrants and common stock. Details of the Plan of Reorganization are available on the companys website at www.lodgian.com and are also being filed with the SEC as an exhibit to a Form 8-K. Lodgian is an owner/operator of full- and mid-priced hotels in the United States, with 105 hotels located in 32 states and one hotel in Windsor, Canada. The company operates hotels under franchises such as Holiday Inn, Marriott, Hilton, and Crowne Plaza.