AmREIT Kicks off 2004 with Key Property Acquisitions; AmREIT Also Announces Sale of Three Retail Properties.

Business Editors

HOUSTON--(BUSINESS WIRE)--Jan. 22, 2004

AmREIT (AMEX:AMY), a Houston-based real estate investment trust, announced today the purchase of three retail projects totaling approximately $10.1 million.

The Terrace Shops, a 16,400-square-foot shopping center, is located near the West University area of Houston, at the prestigious corner of Buffalo Speedway and West Park. The shopping center is anchored by the national coffee store chain Starbucks (Nasdaq:SBUX). "The superior demographics and location of this property make it an ideal fit with AmREIT's 'irreplaceable corners' strategy," said Tenel Tayar, vice president of acquisitions for AmREIT.

In addition, AmREIT announced two land acquisitions. Todd McDonald, vice president of sale leasebacks, steered the acquisition of a one-acre parcel at the intersection of Interstate 45 and West Road in Houston, creating a long-term ground lease with a national fast food corporation.

The second land acquisition consists of a two-acre site at the intersection of San Felipe and Winrock in the Tanglewood/Memorial area of Houston. A national bank institution has already signed a long-term ground lease for approximately one acre. "We are currently in the demolition phase of the project and are anticipating a cleared site by mid February. AmREIT's search for quality locations has uncovered many opportunities for infill locations by converting multifamily and office uses into retail," said Preston Cunningham, vice president of development. "This corner, located in one of the most prestigious areas of Houston, demonstrates our dedication to building a portfolio of properties in some of the most attractive demographic areas across the country."

"These acquisitions are a fundamental part of our growth strategy," said Chad Braun, chief financial officer of AmREIT. "Last year we invested $32 million and this year we plan to outpace that activity by 100 to 150 percent."

Along with these recent acquisitions, AmREIT also announced the sale of an IHOP restaurant in Merrillville, Indiana, an OfficeMax in Dover, Delaware, and the sale and lease buyout of a Goodyear Tire store in Houston. All projects were sold at a profit.

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 18 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 is also 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, 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 713-970-2100, or Chad Braun, AmREIT, at 713-850-1400. AmREIT is online at www.amreit.com.