Jameson Inns Reports No Significant Damage From Hurricane Katrina

. October 14, 2008

ATLANTA, GA, August 31, 2005. Jameson Inns, Inc. , a leading hotel company, and owner and operator of Jameson Inn and Signature Inn hotels, today provided an update on the status of its hotels which were recently impacted by Hurricane Katrina.

The Company has completed an assessment of the damage sustained by its Jameson Inns located in the Southeast. The Company has determined that none of its properties located in Alabama, Florida, Louisiana or Mississippi experienced significant damage due to Hurricane Katrina. There was no significant interruption of its business and all of the hotels affected by the hurricane remain open.

Jameson Inns, Inc. owns and operates hotel properties in the southeastern and midwestern United States. The Company has also licensed 12 hotels to operate as Jameson Inns. There are currently 122 Inns (105 under the Jameson Inn brand and 17 under the Signature Inn brand) with approximately 8,000 rooms operating in 13 states.

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