HENDERSONVILLE, Tenn | ShoLodge, Inc. (NASDAQ: LODG - News) announced that, consistent with its previous announcement, it has filed Form 15 today with the United States Securities and Exchange Commission voluntarily deregistering its securities and suspending its duty to file reports under Section 13 and 15(d) of the Securities Exchange Act of 1934. Any publicly-traded company with fewer than 300 holders of record of its common stock is eligible to take this action. As a result of deregistering with the SEC, ShoLodge's common stock will cease to be eligible for listing on Nasdaq as of January 25, 2005.

The Company expects the deregistration to become effective within 90 days of the filing of the Form 15. As a result of the Form 15 filing, the Company's obligations to file with the SEC certain reports and forms, including Forms 10-K, 10-Q and 8-K, will be suspended as of the date of the actual filing of the Form 15 and will cease as of the date the filing becomes effective.

Commenting on the announcement, Leon Moore, chief executive officer of ShoLodge, said, "As we previously announced, it is becoming increasingly expensive to be a public company. We have made a careful consideration of the advantages and disadvantages of continuing registration and the high costs and demands on management time arising from compliance with SEC, Sarbanes-Oxley and NASD requirements. We believe that this is an unnecessary burden for ShoLodge. Deregistering will significantly benefit the Company by reducing expenses and avoiding even higher future expenses."