LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Loss from Continuing Operations (a GAAP measure)
	2004			2003
	Fourth Quarter			Fourth Quarter
($ in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(11,071	)	$	(17,028	)
Depreciation and amortization		6,635			7,194
Fresh start adjustments		—			—
Interest income		(345	)		(196	)
Interest expense		7,561			7,718
Preferred stock dividends		—			4,065
Loss on preferred stock redemption		—			—
Provision (benefit for income taxes — continuing operations		(260	)		(48	)
EBITDA from continuing operations	$	2,520		$	1,705
Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate	$	60		$	1,289
and other on consolidated statement of operations
Reorganization expenses		—			(647	)
Impairment loss		6,809			11,287
Gain on asset dispositions		—			(445	)
Casualty losses for damage caused to our properties by the		294			—
hurricanes that hit the Southeastern United States in the third
quarter
Adjustments to bankruptcy claims reserves		(38	)		(218	)
Adjusted EBITDA from continuing operations	$	9,645		$	12,971
Continuing operations excluding Closed Hotels due to Hurricane Damage:
(Loss) income from continuing operations	$	(9,852	)	$	(17,168	)
Depreciation and amortization		6,403			6,926
Fresh start adjustments		—			—
Interest income		(342	)		(194	)
Interest expense		7,300			7,491
Preferred stock dividends		—			4,065
Loss on preferred stock redemption		—			—
Provision (benefit for income taxes — continuing operations		(260	)		(48	)
EBITDA from continuing operations	$	3,250		$	1,072
Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate		60			1,289
and other on consolidated statement of operations
Reorganization expenses		—			(647	)
Impairment loss		6,763			11,249
Gain on asset dispositions		—			(445	)
Casualty losses for damage caused to our properties by the		83			—
hurricanes that hit the Southeastern United States in the third
quarter
Adjustments to bankruptcy claims reserves		(37	)		(214	)
Adjusted EBITDA from continuing operations	$	10,119		$	12,304

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Loss from Continuing Operations (a GAAP measure)
	2004
	($in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(35,846	)
Depreciation and amortization		27,376
Fresh start adjustments		—
Interest income		(647	)
Interest expense		42,990
Preferred stock dividends		9,383
Loss on preferred stock redemption		6,063
Provision (benefit) for income taxes — continuing operations		228
EBITDA from continuing operations	$	49,547
Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate and other on our consolidated statement of operations	$	457
Reorganization expenses		—
Impairment loss		7,416
Gain on asset dispositions		—
Casualty losses for damage caused to our properties by the hurricanes that hit the southeastern United States in the third quarter		2,313
Adjustments to bankruptcy claims reserves		(38	)
Adjusted EBITDA from continuing operations	$	59,697