AmREIT Awarded 42-Acre Retail Development Project on Prime Corner in South Texas.

Business Editors/Real Estate Writers

HOUSTON--(BUSINESS WIRE)--Feb. 26, 2004

AmREIT (AMEX:AMY), a Houston-based real estate investment trust, has been selected to develop a 42-acre major retail project located in McAllen, Texas, in conjunction with El Pistolon II, Ltd.

The project, located at the northeast corner of 10th Street and Dove Street in McAllen is a substantial proposed retail development for north McAllen. "The U.S. Census ranked McAllen the fourteenth fastest growing city in the country and Forbes magazine recently ranked it 5th best place in the country for job growth," said Preston Cunningham, vice president of development for AmREIT. "Our corner is located at the heart of this growth, which is why many of America's top retailers are already expressing an interest in this location." AmREIT Realty Investment Corp. (ARIC), a wholly-owned real estate operating subsidiary of AmREIT, will be managing the development, construction and leasing for this project which is estimated to exceed 400,000 square feet. The project is being developed in conjunction with El Pistolon II, Ltd., a single purpose entity that owns the land.

"This project has been discussed for years," said Ramon Garcia, managing member of El Pistolon Management, LLC. "We anticipate this will have a positive effect on McAllen and the surrounding areas and feel that we have selected the most skilled development team for this effort. We feel confident that our relationship with AmREIT will produce one of the highest quality retail corners in the Rio Grande Valley, stimulating both economic and job growth."

"In the last few decades McAllen has become the Valley's leader in business, commerce and government," said Omar Garcia, a representative of El Pistolon Management, LLC. "Not only is McAllen the home for many national businesses, it is also the hub for most state and government operations in the valley."

"We are privileged to have been chosen as the developer of this prime corner," said Kerr Taylor, chief executive officer of AmREIT. "We put our name on only the best retail corners, and we feel that this is one of the finest in the region."

About AmREIT

AmREIT, a self-managed real estate investment firm, has been acquiring, developing, and managing high quality commercial retail real estate to generate monthly income and growth opportunities for investors for more than 19 years. A rapidly growing publicly traded company, AmREIT is known for its ownership of "irreplaceable corners" -- premier retail frontage properties in high-traffic, highly populated areas. AmREIT Realty Investment Corp. (ARIC), a wholly-owned subsidiary of AmREIT, is a real estate operating company and the sponsor of investment funds offered to accredited investors through the financial planning community. These funds create value through actively acquiring and developing high quality free standing and shopping center properties leased to trusted names such as Starbucks, Walgreens and Washington Mutual in order to create the potential for increasing income and capital appreciation by selling the properties within a defined time horizon.

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which AmREIT operates, management's beliefs and assumptions made by management. Past performance is not indicative of future returns. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.

For more information, call Ignacio Gonzalez, Vollmer Public Relations, at [phone], or Chad Braun, AmREIT, 713-850-1400. AmREIT is online at www.amreit.com.