Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Choice Hotels International, Inc.

Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin”) (http://www.lerachlaw.com/cases/ChoiceHotels/) today announced that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Choice Hotels International, Inc. ("Choice Hotels” or the "Company”) (NYSE: CHH) who purchased the publicly traded securities of Choice Hotels between April 25, 2006 to July 26, 2006, inclusive (the "Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act”). If you wish to serve as lead plaintiff, you must move the Court no later than June 11, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Lerach Coughlin at 800/449-4900 or 619/231-1058 or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/ChoiceHotels/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Choice Hotels and certain of its officers and directors with violations of the Exchange Act. The Company, along with its subsidiaries, operates as a hotel franchisor worldwide. It franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels brand names. According to the complaint, Defendants issued a series of materially false and misleading statements concerning Choice Hotels, its business, operations and prospects. Unbeknownst to shareholders, the true facts were that the Company was experiencing a dramatic decrease in the number of new hotel franchise contracts such that it was not meeting internal expectations and would report slowing growth in this important business segment. Moreover, the Company was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about the Company, Company insiders sold more than $16 million dollars of their personally-held shares to the unsuspecting public. On July 25, 2006, after the markets closed, Choice Hotels revised their earnings guidance for 2006 downward and reported slowing new franchise growth and reduced hotel conversions. Upon this announcement, the price of Choice Hotels common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share, on heavy trading volume. Plaintiff seeks to recover damages on behalf of all those who purchased the publicly traded securities of Choice Hotels between April 25, 2006 to July 26, 2006. Plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.