American Golf Satisfies Conditions to Effectiveness.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--August 2, 2002

National Golf Properties, Inc. ("National Golf") (NYSE:TEE) announced today that all of the conditions to effectiveness of the restructuring agreements entered into by American Golf Corporation ("American Golf"), the primary tenant of National Golf, and American Golf's lenders on July 23, 2002 have been satisfied.

As previously announced on April 1, 2002, National Golf, American Golf and certain affiliated entities entered into a merger and reorganization agreement providing for a combination of the two companies.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which National Golf expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the various businesses will not be integrated successfully; costs related to the proposed transaction; and other economic, business, competitive and/or regulatory factors affecting National Golf's and American Golf's businesses generally, including those contained in National Golf's reports with the SEC. National Golf is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Additional Information

In connection with the proposed transaction with American Golf, National Golf and the new corporation will file a proxy statement/prospectus with the Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.

Investors and security holders may obtain a free copy of the proxy statement/prospectus (when it is available) and other documents filed by National Golf with the SEC at the SEC's web site at www.sec.gov. The proxy statement/prospectus (when it is available) and these other documents may also be obtained for free from National Golf by calling National Golf at [phone], and through National Golf's web site at www.nationalgolfproperties.com. National Golf and its directors, executive officers and certain other members of management and employees may be soliciting proxies from its stockholders in favor of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of National Golf's stockholders in connection with the proposed transaction is set forth in National Golf's form 10K/A for the year ended December 31, 2001, dated April 30, 2002 and filed with the SEC on April 30, 2002. Additional information will be set forth in the proxy statement/prospectus when it is filed with the SEC.

About National Golf Properties, Inc.

National Golf Properties is the largest publicly traded company in the United States specializing in the ownership of golf course properties with 108 golf course facilities geographically diversified among 22 states.