Rockbridge Acquires Rocky Mount Portfolio

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. October 14, 2008

AUGUST 13, 2008. RockBridge Partners, LLC ("RockBridge Partners"), an affiliate of RockBridge Capital, LLC ("RockBridge Capital"), today announced the closing of a $45.9 million acquisition of a 461-room hotel portfolio, a 31,933 square foot office/retail property known as the Gateway Center, and a 4.57-acre parcel of land. The original developer, William Hull, Jr., will remain in the deal as a minority partner. Hospitality Ventures will manage the portfolio of hotels. James T. Merkel, Managing Director of RockBridge, made the announcement.

The hotel component of the portfolio consists of a 168-room Holiday Inn (which is currently being converted to a 166-room Doubletree), a 78-room Residence Inn, a 90-room Courtyard, and a 125-room Comfort Inn. The four hotels will undergo approximately $8.5 million in renovations, of which $6.5 million will be dedicated to the renovation and conversion of the Holiday Inn to a Doubletree. The acquisition also includes 31,933 square foot office/retail property known as the Gateway Center, and a 4.57-acre parcel of land, which both sit amongst the cluster of hotels.

The portfolio is located one mile east of I-95 off US 64 in Rocky Mount, North Carolina. Rocky Mount is located approximately halfway between New York and Florida and is a popular stop off I-95 for travelers. Situated approximately 60 miles east of Raleigh, Rocky Mount also serves as the regional hub for both Nash and Edgecombe County and is considered the preferred destination for those doing business in the northern and eastern parts of North Carolina. Corporate demand generators in the area include RBC Centura, Hospira, Honeywell, QVC, Boddie Noell Enterprises, Embarq, MBM Corporation, and Consolidated Diesel Company.

Commenting on the project, Merkel said, "Execution in today's market is challenging, but our ability to assemble the right team for all aspects of the transaction enabled us to deliver what we had promised. We are excited about our business plan going forward with our new partner as we continue to strive to deliver strong returns to our investors."

Hospitality Ventures ("HV"), headquartered in Atlanta, GA, will manage the hotel component of the portfolio. HV currently owns twelve hotels containing over 2,000 rooms. HV's President and CEO, Robert Cole, and the executive team have a combined 70+ years of experience in the hospitality real estate industry. Over the past 15 years, the HV principals have invested in and operated over 150 hotel properties (including the principals' predecessor companies, Lodgian and Impac).

RockBridge Partners was formed as the equity platform of RockBridge Capital. RockBridge invests first mortgage, mezzanine, and equity capital in hotels throughout the U.S. with a focus on creating value for its hotel operating partners. Since 1992, RockBridge has invested more than $2.65 billion in over 315 assets nationwide with aggregate transaction capitalization of more than $4.4 billion. For additional information about RockBridge Capital, contact James T. Merkel at (614) 246-2505 or visit www.rockbridgecapital.com.