Winston Hotels, Inc., (NYSE: WXH), today announced that its Board of Directors has declared the Company’s regular quarterly cash dividend distributions on its common and preferred shares.

The Board declared a cash dividend of $0.28 per common share for the second quarter of 2000. The cash dividend is payable on July 14, 2000, to shareholders of record on June 30, 2000. The Company currently has approximately 16.9 million common shares outstanding. Based on today’s closing price of $7.375 per common share, the annualized dividend yield is 15.2%.

The Board also declared a cash dividend of $0.578125 per preferred share for the second quarter of 2000. The cash dividend is payable on July 14, 2000, to preferred shareholders of record on June 30, 2000. The Company currently has 3,000,000 preferred shares outstanding.

In other Company news, Winston Hotels today announced that Branch Banking and Trust Co. (“BB&T”) will replace EquiServe as transfer agent and as plan administrator for the Company’s Dividend Reinvestment and Stock Purchase Plan effective June 20, 2000. BB&T can be contacted as follows:

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