ENN Equity Inns

Equity Inns, Inc. (NYSE:ENN), the third largest hotel real estate investment trust (REIT), today announced that the characterization of its 2006 dividends for income tax reporting purposes are as follows: Common Stock ------------ 2006 Taxable 2006 Dividend Date of Record Date of Ordinary Return of Per Share Declaration Date Payment Dividends Capital --------- ----------- -------- -------- --------- --------- $0.19 3/6/06 3/31/06 5/1/06 $0.090151 $0.099849 $0.19 6/15/06 6/30/06 8/1/06 $0.090151 $0.099849 $0.23 9/15/06 9/29/06 11/1/06 $0.109131 $0.120869 $0.23 12/14/06 12/29/06 1/31/07 $0.109131 $0.120869 ----- --------- --------- Totals $0.84 $0.398564 $0.441436 ===== ========= ========= 47.4482% 52.5518% ========= ========= Preferred Stock - Series B -------------------------- 2006 Taxable Dividend Date of Record Date of Ordinary Per Share Declaration Date Payment Dividends --------- ----------- -------- -------- --------- $0.546875 3/6/06 3/31/06 4/28/06 $0.546875 $0.546875 6/15/06 6/30/06 7/31/06 $0.546875 $0.546875 9/15/06 9/29/06 10/31/06 $0.546875 $0.546875 12/14/06 12/29/06 1/31/07 $0.546875 --------- --------- Totals $2.187500 $2.187500 ========= ========= 100% ==== Preferred Stock - Series C -------------------------- 2006 Taxable Dividend Date of Record Date of Ordinary Per Share Declaration Date Payment Dividends --------- ----------- -------- -------- --------- $0.411111 3/6/06 3/31/06 4/28/06 $0.411111 $0.500000 6/15/06 6/30/06 7/31/06 $0.500000 $0.500000 9/15/06 9/29/06 10/31/06 $0.500000 $0.500000 12/14/06 12/29/06 1/31/07 $0.500000 --------- --------- Totals $1.911111 $1.911111 ========= ========= 100% ==== Per a special provision in the Internal Revenue Code, the fourth quarter dividend declared in December 2006 and paid in January 2007 is deemed to have been paid by Equity Inns and received by shareholders on December 31, 2006. Therefore, this dividend will be included on Form 1099-DIV for 2006. About Equity Inns Equity Inns, Inc. is a self-advised REIT that focuses on the upscale extended stay, all-suite and midscale limited-service segments of the hotel industry. The Company, which ranks as the third largest hotel REIT based on number of hotels, currently owns 129 hotels with 15,366 rooms located in 35 states. For more information about Equity Inns, visit the Company�s Web site at www.equityinns.com.