Choice Hotels Acquires Controlling Interest in Flag Choice Hotels of Australia

FCH currently franchises approximately 400 properties in Australia and New Zealand under the Flag, Comfort, Quality, and Clarion brands and is the largest hospitality franchisor in those countries. Concurrently with completion of the transaction, more than half of the Flag branded properties in Australia will convert to the Choice brands. As a result of the transaction, Choice will integrate FCH's Melbourne call center to its worldwide reservations network.

Choice Hotels International franchises more than 5,000 hotels open or under development worldwide under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities law. Such statements are based on management's beliefs, assumptions and expectations, which in turn are based on information currently available to management.

Actual performance and results could differ from those express in or contemplated by the forward-looking statements due to a number of risks, uncertainties and other factors, many of which are beyond Choice's ability to predict or control.

For further information on factors that could impact Choice and the statements contained therein, we refer you to the filings made by Choice with the Securities and Exchange Commission, including its registration statement on Form S-4 and report on Form 10-Q for the period ended September 30, 2001.

Additional corporate information may be found on the Choice Hotels' Internet site, which may be accessed at www.choicehotels.com.

Comfort, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Choice Privileges, EA$Y CHOICE and are registered trademarks, service marks and trade names of Choice Hotels International, Inc. Choice Hotels also owns and uses common law marks, including Profit Manager.