December 15, 2004

COLUMBUS, GA. - U.S. Army and Clark Pinnacle Family Communities today formalized an historic plan to replace and renovate military family housing communities for Fort Benning and Porter Village. Through a highly competitive bidding process, the Army selected Clark Pinnacle to be the development partner for the Fort Benning Residential Communities Initiative (RCI). This is Clark Pinnacle's fourth RCI project.

The planned development will consist of a proposed 3,600 new homes and refurbishment of approximately 540 existing homes - of which approximately 500 are historically significant. Speakers at the signing ceremony included Deputy Assistant Secretary of the Army, Privatization and Partnerships, Mr. William A. Armbruster; Commanding General of Fort Benning, Brigadier General Benjamin C. Freakley; and Clark Realty Capital Managing Director of Military Housing, Mr. M. Scott Orrantia.

"Today we recognize the Army's commitment to improve the quality of life of our military families," said Mr. Bill Armbruster. "Our strong partnership with Clark Pinnacle and Fort Benning's participation in the planning process will ensure the development of communities that fit the needs of our military families."

The planned housing project is part of the Army's RCI program, enacted by Congress in 1996 with the Military Housing Privatization Initiative, which allows the military to obtain private sector capital and expertise to develop, manage and improve military family housing. Over the next five months, Clark Pinnacle Family Communities in partnership with the Army will develop a Community Development and Management Plan (CDMP) which will be submitted to the Department of the Army and Congress for approval. Following the plan's acceptance, implementation is expected in the fall of 2005.

"Clark is honored to be a partner with the Army," said Mr. M. Scott Orrantia. "This project will provide better homes and increased quality of life for our dedicated military families and will also bring significant economic benefit to the entire Columbus community."

Approximately $600 million in private sector debt and equity will be spent within the 10-year initial development period to renovate existing and construct new/replacement family housing.

Clark Realty Capital and affiliates will manage the project's development, design, construction, and asset management, and Pinnacle will handle property management operations. Award-winning architect Torti Gallas and Partners, Silver Spring, Md., will provide the design and land planning for the homes.

In addition to the Fort Benning project, Clark Pinnacle is developing, building, renovating, and operating military family housing at Fort Belvoir, Va.; the Presidio of Monterey and Naval Postgraduate School in Monterey Bay, Calif.; and at Fort Irwin, Moffett Federal Airfield, and Parks Reserve Forces Training Area in California. Clark is also developing and building military family housing for the Department of the Navy at Marine Corps Base Quantico in Virginia, and at the Naval Complex in San Diego. Clark Realty Capital has raised $2 billion in debt and equity for these developments. When these projects are complete, Clark Realty Builders will have constructed or renovated more than 14,000 military family homes.