BROKEN ARROW, Okla., Aug. 15 / XETA Technologies XETA, in partnership with Louisville, KY-based Darwin Networks, has been selected to provide the company's Virtual XL Series(R) call accounting system in combination with Darwin's in-room high-speed Internet access system in 102 Lodgian, Inc. LOD properties. Lodgian is one of the nation's largest owners and operators of hotel properties, with 129 properties and more than 24,000 rooms in 35 states.

With about a 25 percent market share, XETA leads the hospitality industry in call accounting installations. The company's Virtual XL Series(R) call accounting system provides flexible access from either the Internet or a LAN/WAN connection, allowing Lodgian to centralize the management and reporting of its call accounting. The call accounting system tracks each guest's telephone and high-speed Internet usage and posts it in real-time to the guest's folio (or bill) on the Property Management System (PMS), thereby improving revenue per available room (RevPAR).

"The unique flexibility of XETA's Virtual XL call accounting will help us ensure that we're generating the maximum revenue from our new high-speed Internet access systems as well as help improve our overall RevPAR," said Mike Funk, Director of Telecommunications for Lodgian. "We needed a system that would not only allow us to keep a careful watch on the revenues being generated at more than 100 properties, but also one that was proven and reliable. XETA brought both aspects to the table."

In February, XETA announced that it would begin partnering with Darwin Networks to offer a high-speed Internet access solution to the lodging industry. The XETA/Darwin platform ensures accurate posting of Internet calls and seamless integration with the PMS. Hoteliers and guests alike benefit from Darwin's private peered network, which allows hotels and partner companies to transmit private "Internet" data across the company's nationwide backbone, thus avoiding the risks associated with using the public Internet as a transmission medium.

"Our partnership with Darwin has given us an opportunity to complement our well-respected product and service brands with a top-of-the-line in-room high-speed Internet access system," said Don Reigel, President of XETA's Lodging Division. "Our customers have recognized the added value they get by combining XETA's Linux-based Virtual XL call accounting system with Darwin's DSL solution, and we expect to see many more property management companies choose this option as they bring this highly demanded service to their guests."

Project rollout will begin in September with completion anticipated by the end of this calendar year.

About XETA Technologies

XETA Technologies is a premier voice and data integrator with 21 sales offices and 30 service centers. Embarking on a strategy to be recognized as the leading provider of equipment and after-market service for both voice and data applications, XETA Technologies is continuing to build upon its success as the largest dealer of Lucent (Avaya) and Hitachi voice systems. The Lodging Division of XETA Technologies is the leader in the sales and service of call accounting systems to the lodging industry, boasting about a 25% share of the market. Further, this division is the leading re-seller of Hitachi and Avaya PBX systems in the market at a 15% market share. The Commercial Division of XETA Technologies, formerly St. Louis-based US Technologies and Portland-based Advanced Communication Technologies (ACT), is the largest dealer of Avaya systems and was recognized by Avaya as BusinessPartner of the Year in 1994, 1998 and 1999.

In 1999, XETA Technologies was selected by Forbes Magazine as one of the Best 200 Small Companies in America for the fourth time in five years. Business Week also selected XETA Technologies as one of its Top 100 Hot Growth Companies for 2000 and 1999. XETA Technologies has generated six years of record financial results, with sales and EPS growing at five-year annual compound rates of 38% and 29%.

For more information on XETA Technologies, visit the company's website at .

About Lodgian

Lodgian, Inc. currently owns or manages a portfolio of 129 hotels with approximately 24,000 rooms in 35 states and Canada. The hotels are primarily full service, providing food and beverage service, as well as meeting facilities. Substantially all of Lodgian's hotels are affiliated with nationally recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Sheraton, Hilton, Doubletree and Westin.

Lodgian's common shares are listed on the New York Stock Exchange under the symbol "LOD". Lodgian is a component of both the Russell 2000(R) Index, representing small cap stocks, and the Russell 3000(R) Index, representing the broader market.

This news release contains forward-looking statements, which are made subject to the provisions of the Private Securities Litigation Reform Act of 1995. These statements include statements concerning future customer demand for the company's call accounting product offering in combination with high-speed Internet access systems, and the schedule for commencing and completing installation of the current Lodgian order for such systems. These and other forward-looking statements (generally identified by such words as "expects," "plans," "believes," "anticipated" and similar words or expressions) reflect management's current expectations, assumptions, and beliefs based upon information currently available to management. Investors are cautioned that all forward-looking statements are subject to certain risks and uncertainties which are difficult to predict and that could cause actual results to differ materially from those projected. These risks and uncertainties include uncertainties inherent with rapidly changing technologies and customer demand, competitive pressures, relations with suppliers, vendors and customers, issues associated with rapid growth and managing that growth, and the availability of skilled technical personnel. Additional factors which could affect actual results are described in the section(s) entitled "Outlook and Risk Factors" contained in the company's Form 10-K for its fiscal year ended October 31, 1999, its most recently filed Quarterly Report on Form 10-Q and other reports previously filed by the company with the Securities and Exchange Commission.

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XETA Technologies