U.S. Franchise Systems Continues Record-Breaking Texas Expansion With 75 Hotels Open or in Development

ATLANTA (April 8, 1999) -- After little more than three years in operation, Atlanta-based U.S. franchise Systems, Inc. (Nasdaq: USFS), franchisor of Microtel Inn & Suites, Hawthorn Suites and Best Inns & Suites, has taken Texas by storm with 75 hotel properties open or in development throughout the state.

Microtel, the fastest growing chain of all newly constructed, interior corridor, budget/economy hotels in the U.S., offers single, double and suite accommodations with an average daily rate from $35 to $55. The brand provides complimentary morning coffee, remote cable TV with ESPN, CNN and HBO, and chiropractic-approved mattresses. Frills are kept to a minimum, so the value- conscious traveler doesn't have to pay for the things he or she doesn't use.

Microtel properties currently open in Texas are located in Arlington, Euless, Ft. Worth, Irving (two), Lewisville, McAllen, San Antonio, San Marcos and Stafford. Properties under construction are located in El Paso, Longview and North Garland. There are also an additional 19 Microtel properties in development throughout the state.

Hawthorn Suites, the all-suites chain, offers complimentary hot breakfast buffet seven days a week and evening social hour Monday through Thursday. Accommodations are nearly twice as large as a traditional hotel room, with daily complimentary newspaper, extended cable TV with movie channel and VCP, voice mail and data ports. There is also an on-site convenience store, outdoor pool, Sport Court®, exercise room and on-site guest laundry and valet service at most locations. Hawthorn Suites LTD. offers studios with efficiency or full-size kitchen. Properties have many of the all-inclusive amenities of Hawthorn Suites, such as daily complimentary hot breakfast buffet and Wednesday evening social hour.

Hawthorns are currently open in Austin (three), Dallas (five), Houston, Killeen and San Antonio (three). Properties under construction are located in Ft. Worth (two), Houston, Lubbock and Witchita Falls. There are also an additional seven Hawthorn properties in development throughout Texas.

Best Inn & Suites, USFS' newest mid-market/economy brand, has expanded from 38 hotels when the Company purchased it in April 1998, to more than 205 hotels open or in development as of Jan. 22, 1999. There is currently a location in development in McAllen, Texas and 17 applications for properties across the state.

U.S. Franchise Systems, Inc., 404-235-5780