La Quintaå® Pays Off Bank Term Loan

La Quinta® Pays Off Bank Term LoanDallas, Texas (July, 2002)—La Quinta® Corporation (NYSE: LQI) announced today that it has recently prepaid the outstanding balance of its bank term loan. As of June 21, 2002, total indebtedness has been reduced to $812 million with no significant near-term debt maturities this year and the company maintains significant liquidity with cash on hand of $125 million. The company has no borrowings under its $225 million revolving line of credit.

“Our strategy of selling non-strategic assets continues to generate significant cash proceeds,” commented David L. Rea, Executive Vice President and Chief Financial Officer. “Proceeds from additional asset sales, cash on hand and availability under our revolver gives us the financial flexibility to pursue investment opportunities as well as manage 2003 debt maturities.”

AND La Quinta® Files Shelf Registration StatementDallas, Texas (July)—La Quinta® Corporation (NYSE: LQI) announced today that it has filed a shelf registration statement with the Securities and Exchange Commission. The shelf registration statement, once declared effective by the SEC, will replace the company`s former shelf registration statement, which had $1.825 billion of availability under it.

The shelf registration statement, once declared effective by the SEC, will facilitate, from time to time, the offer and sale of up to $750 million of securities, which may include both equity and debt securities of La Quinta Corporation and its controlled subsidiary La Quinta Properties, Inc. The actual amount of any securities to be issued, and the terms of those securities, will be determined at the time of the sale, if such sale occurs. The anticipated use of net proceeds from the sale of such securities is for general business purposes, which may include refinancing outstanding indebtedness and capital expenditures, including acquisitions.

The shelf registration statement relating to these securities has been filed with the SEC but has not yet become effective. The securities described in the shelf registration statement may not be sold, nor may offers to buy be accepted, prior to the time the shelf registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.


p>About La Quinta Corporation:

Dallas-based La Quinta Corporation, a mid-scale limited service lodging company, owns, operates or franchises over 330 La Quinta Inns and La Quinta Inn & Suites in 33 states. Today`s news release is available on the Internet at