Sunburst Shareholders To Vote On Recapitalization

SILVER SPRING, MD Sunburst Hospitality Corp. a hotel ownership and management company, announced that it has set January 4, 2001 as the date for a special meeting of the stockholders being called to vote on a Recapitalization Agreement. If the requisite number of stockholders approves the Recapitalization Agreement, 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. (12/8/00)