1031 Exchange Securites Private Offerings at Evergreen Development Top $290M in 2004.

PASADENA, Calif. -- Evergreen Development, LLC sponsored $290,790,791 in private placements of securities to acquire 11 garden apartment and commercial/industrial properties in 2004, more than double the amount invested in 2003 for a total of $475,712,377 since 1999.

"We are seeing explosive growth in demand by private investors to capitalize on tax-deferral advantages in our fifth year of providing tenant-in-common investment opportunities under 1031 Exchange provisions in the Tax Code," according to Luke V. McCarthy, CEO of Evergreen.

"We expect to outpace the industry growth trend with similar investments to the clients of more than 100 securities broker/dealer firms and financial advisory services in 2005," he said.

"In the second half of 2004, we developed a niche and found an eager market for special types of garden apartments for student housing that we have offered as 'collegiate living' alternatives," McCarthy said. "Investors see value in the growing demand for quality living conditions with full amenities in the university environment, security of the credit-worthiness in parental co-signing of 12-month leases and the economic stability of working adult graduate students," McCarthy pointed out.

In 2003, Evergreen Development offered $124,257,00 in securities in six securities private placements for five apartments and one office building; in 2002, $33,975,000 for one apartment and one business park; in 2001, $18,251,705 for two business parks; in 2000, $4,200,000 for one business park; and in 1999, $4237,000 for an RV and self-storage facility. Investors have received cash-on-cash returns on these investments well above prevailing market rates in addition to substantial equity build-up since acquisition.

Section 1031 of the Internal Revenue Code provides that the federal capital gains taxes are deferred when equity from business or investment real estate sales are exchanged into new properties. By completing a 1031 Exchange, an exchanger can dispose of a property, use all of the equity to acquire replacement investment properties, defer the capital gain tax that would ordinarily be paid and leverage all of the equity into a replacement property.

Evergreen Development intends to acquire properties primarily between $15 million and $50 million in the West, Southwest and Midwest for Class "A" apartments, mid-rise office buildings, single-tenant industrial complexes and mini-storage properties to be offered in 1031 Exchange private placements of securities.

An Evergreen Development affiliate is also the sponsor of a $55 million private Real Estate Investment Trust -- Evergreen Realty REIT, Inc. -- emphasizing the acquisition of apartments with some single-tenant office and industrial properties that can be repositioned to become higher value properties with intense property management and infusion of capital.

Forward-looking statements: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties.