RIVERDALE, Ga. -- The woman who prosecutors say set a fire that killed five members of a family entered a not guilty plea Friday.

Prosecutors say Sheree "Queen" Dionne Murphy was a prostitute who used crack cocaine when she set fire to a mattress at the Riverdale Budget Inn on June 7, 2007. She was angry at her drug dealer who lived at the motel, according to prosecutors.

Killed in the fire were Shakita Jones, 32; Jones's uncle, Melvin Jones, 43; Jones's fiance, Freddy Colston, Jr., 27; and two of Jones's children, Devon Butler, 12, and Desha Butler, 10. Firefighters said they found the victims crouched in their shower with the water running.

Neighbors said the family had tried to escape the flames, but the room's door knob was broken.

Jones's 13-year-old daughter Shae-von survived the fire, although she suffered severe burns. She has since moved to Chicago with her father.

In court Friday, the defendant's 22-year-old daughter waved her arms excitedly when she saw her mother. Murphy, 41, smiled back. She faces the death penalty if convicted.

Murphy was charged in the case in 2008, but the charges were dropped because of a technicality. A grand jury recently re-indicted Murphy.

Outside the courthouse, CBS Atlanta News asked Murphy's sister Carolyn Cain, "Did your sister do it?" "No," she replied.

Murphy's attorney Steven Frey added, "I can tell you without question that she has repeatedly and adamantly and emphatically denied being involved in this."

Frey said prosecutors have the wrong person. The real arsonist, he said, will be revealed during the trial.