Behringer Harvard Funds Adds Washington, D.C. Office Building to REIT Portfolio; Historic Colorado Building Lauded as Unique ``Jewel Box'' Property.

DALLAS -- Behringer Harvard Funds announces the acquisition of The Colorado Building, a Washington, D.C. office building which has served as a desirable tenant destination for more than a decade. The historic building is situated just two blocks from the White House in the heart of the East End of downtown. The asset was acquired for Behringer Harvard REIT I, Inc., in conjunction with the Behringer Harvard Funds 1031 Tenant in Common Exchange Program.

The Colorado Building, located at 1341 G Street NW, is a one-of-a-kind 126,000 square foot building occupied by nine tenants, which include Bowne & Company, Inc., Infotech Strategies, Community Transportation Association, The Environmental Protection Agency (EPA) and The Department of Labor (DOL). The EPA and DOL lease space through the General Services Administration (GSA), which recently completed a lease contract for additional space on the second floor. The building is currently 81 percent occupied.

"The Colorado Building is truly exquisite in architecture, historical integrity, location and function, and is a smart and exciting fit for our REIT asset portfolio," said Robert Behringer, the founder and CEO of Behringer Harvard Funds. "The up and coming East End market has extremely high demand among institutional investors and high barriers to entry for new office supply. It is the District's second largest sub-market - and its most important one by many estimations. The majority of the development occurring now within the District is taking place in the East End."

Situated in the city's finest concentration of premier office buildings, upscale restaurants, luxury hotels and entertainment destinations, the building was originally developed in 1903 by Thomas F. Walsh, who made his fortune in gold and silver mining in Colorado and named the building in the state's honor. The property was redeveloped in 1989, adding the 10th and 11th floors, and upgrading the physical plant. Additional significant improvements were made in 2003, including refurbishing the lobby marble floors, upgrading the walls and carefully restoring the ceiling.

The Colorado Building is one of the few Category III landmark office buildings in the District of Columbia, classifying it as a building of value that contributes to the cultural heritage and visual beauty of Washington, D.C. The property is clad in limestone and buff Roman Brick. The exterior street facades include a monumentally scaled copper cornice with raised acroteria. Remarkable stonework, which includes carved lion faces and garland bas-relief, is dominant throughout the property. Two large carved limestone eagles stand over the main entrance. The property's commanding presence is maintained in the two-story lobby where marbled mosaic floors, black granite accents and mahogany paneled walls complement the restored ornamental plaster ceiling.

"In an already diverse portfolio, The Colorado Building gives Behringer Harvard investors an entrance into one of the most desirable office markets in the country, with the added benefit of a stable and growing occupancy," said Behringer. "This market's strength comes from a combination of fundamentals, including the stabilizing presence of the federal government, a diverse and dynamic regional economy, a highly educated work force, and barriers to entry for new office supply."

Consisting of approximately 334 million square feet, the Washington, D.C. metropolitan area office market is the third largest in the United States.

About Behringer Harvard Funds:

Behringer Harvard Funds is a national real estate investment fund sponsor offering a family of real estate funds to the public through the independent broker dealer community. Its three finite-life, non-listed, public funds offer their securities in best efforts public offerings and seek to produce attractive returns to their investors through a balance of current yield and capital appreciation. Behringer Harvard Funds also sponsors 1031 tenant in common securities offerings that invest in institutional quality commercial real estate.

This release contains forward-looking statements relating to the business and financial outlook of Behringer Harvard Funds, including Behringer Harvard REIT I, Inc., Behringer Harvard Mid-Term Value Enhancement Fund I LP, and Behringer Harvard Short-Term Opportunity Fund I LP, which are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release. Such factors include those described in the Risk Factors sections of the prospectuses for the public offerings of equity of each of Behringer Harvard REIT I, Inc., Behringer Harvard Mid-Term Value Enhancement Fund I LP, and Behringer Harvard Short-Term Opportunity Fund I LP. Forward-looking statements in this document speak only as of the date on which such statements were made and we undertake no obligation to update any such statements that become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.