Mr. David Nunn of Centennial Group reports

CENTENNIAL GROUP WELCOMES PROSPECT OF MORGUARD REPRESENTATIVES ON BOARD OF TEMPLE HOTELS

Centennial Group Ltd., an indirect owner of approximately 5 per cent of the outstanding shares of Temple Hotels Inc., has responded favourably to a recent press report that suggested that Morguard Corp., a shareholder of Temple, may seek representation on the company's board of directors.

"Centennial would be very pleased if Morguard nominated individuals for Temple's board to serve alongside highly qualified and independent nominees that Centennial has put forward. We believe the company's mounting financial, operational and governance challenges must be addressed by a board made up of shareholder representatives who are truly independent, aligned and effective, and possess the requisite capital markets sophistication," said David Nunn, chief executive officer.

"As a well-respected fiduciary in the capital markets, we encourage Morguard to align itself with truly independent nominees and embrace the opportunity to address the challenges created by a manager with a long track record of value destruction and shareholder abuse," continued Mr. Nunn.

Centennial's nominees

Centennial's nominees, Peter Aghar, Jon Hagan, Neil Labatte, Aida Tammer and David Nunn, are highly experienced and well-respected individuals within the Canadian capital markets. Each of Centennial's nominees has held senior leadership positions at leading Canadian companies, including Legacy Hotels REIT, KingSett Capital, Cadillac Fairview and CIBC World Markets. Each nominee has considerable experience in hospitality, real estate, operations management, corporate finance and/or corporate governance. While the nominees will act as independent fiduciaries, they all support a campaign for immediate change at Temple.

We seek Safe Harbor.