Red Lion Hotels Provides Update Regarding Strategic Alternatives Review Process

Red Lion Hotels Corporation

today provided an update on its review of strategic alternatives. As previously announced in March 2012, the board of directors of Red Lion Hotels retained BofA Merrill Lynch as its financial advisor in connection with its exploration of strategic alternatives, including, among others, a potential sale of the company or a strategic combination with a third party.  The board formed a Strategic Alternatives Committee, comprised solely of independent directors, to oversee the process. In the months since the process began, the company executed a comprehensive review process designed to look at all options or any offers to maximize value for shareholders.  The company's advisors contacted more than 75 potentially interested strategic industry and financial partners, including those which had expressed interest directly to the company or were referred to the company by shareholders.  The company received a limited number of non-binding indications of interest, but did not ultimately receive any offers.  After taking into account the recommendation of the Strategic Alternatives Committee, the board has suspended the formal strategic alternatives process. "The board of directors of Red Lion Hotels is committed to pursuing all opportunities to maximize value