Jameson Inns, Inc. today announced that in connection with its annual
shareholder meeting, it intends to give its shareholders additional time
to consider the additional materials recently sent to them (consisting of
the appendices referred to in the proxy statement) and the information
contained in this press release relating to the current shareholder
lawsuit. The Company will still convene the meeting at the scheduled time
and place, 9:00 a.m. Wednesday, December 17, 2003, South Terraces
Conference Center, 115 Perimeter Center Place, Atlanta, Georgia, and
shareholders attending in person or by proxy will be able to vote at that
time on the proposals described in the proxy statement. However, before
closing the polls, there will be a proposal to adjourn the meeting until
9:00 a.m. on Friday, December 19, 2003, and at the same location as
Wednesday`s meeting. Shareholders will have until the polls are closed at
the conclusion of the reconvened meeting to vote, or to change any
previously submitted votes. The voting will then be finally tabulated.
Shareholders will have until 4:00 p.m. on Thursday, December 18, 2003 to
submit or change their votes by mail, facsimile, telephone, or by
Internet, and can vote in person at the reconvened meeting on Friday,
December 19.
On December 11, 2003, Thomas W. Kitchin, Robert D. Hisrich, Michael E.
Lawrence and Thomas J. O`Haren (the “Individual Defendants”), the four
directors of the Company filed a motion to dismiss or, in the alternative,
for summary judgment, with respect to the complaint filed against them and
the Company on October 31, 2003 in the Superior Court of DeKalb County,
Georgia, by shareholder Tammy Newman on behalf of herself and all others
similarly situated, and derivatively on behalf of the Company.

In her complaint, the plaintiff asserts that the consideration proposed to
be paid by the Company in connection with its proposed acquisition of
Kitchin Hospitality LLC constitutes a gross waste of corporate assets and
a breach of fiduciary duty. She claims that the purchase price proposed to
be paid is materially greater than the true value of Kitchin Hospitality
LLC. The complaint also alleges that the preliminary proxy statement filed
by the Company on Schedule 14A contains misrepresentations and omissions
of material facts. In its definitive proxy statement mailed to its
shareholders, the Company discloses the plaintiff`s allegations originally
made in a demand received from her counsel. The actual filing of the
litigation and service of the summons on the Company was disclosed in a
subsequent filing with the U.S. Securities and Exchange Commission.

In their motion, the Individual Defendants are asking the court to dismiss
the complaint on several procedural and substantive grounds. In general,
the Individual Defendants assert that the plaintiff`s charges in the
complaint fail to establish the necessary bases for a class action or to
conform to the procedures necessary for such an action, that her
allegations are inconsistent with the uncontroverted facts, making her
allegations false and legally insufficient, and that the Individual
Defendants followed all of the procedures under state law required to
enable them to properly perform their duties and responsibilities on
behalf of the Company and its shareholders without being subject to claims
such as those being asserted by the plaintiff in the complaint. The
plaintiff has thirty days to submit a response to this motion.

Jameson Inns, Inc. develops and owns the Jameson Inn and Signature Inn
limited service hotel properties. For more information, visit the
company`s website at http://www.jamesoninns.com/ .

Forward-Looking Statements
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Certain matters discussed in this press release are forward-looking
statements within the meaning of federal securities regulations. All
forward- looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual transactions, results,
performance or achievements to be materially different from any future
transactions, results, performance or achievements expressed or implied by
such forward-looking statements. General economic conditions, competition,
and governmental actions will affect future transactions, results,
performance, and achievements. These risks are presented in detail in our
filings with the Securities and Exchange Commission. Although the Company
believes the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that our
expectations will be attained or that any deviations will not be material.
The Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
any future events or circumstances.

Jameson Inns editorial, based on news release distributed by PR Newswire

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