Berkshire Asset Management, Inc. Announces the Formation of Its New Health Care Division.

Business Editors

TAMPA--(BUSINESS WIRE)--Dec. 1, 2003

As previously announced, Berkshire Asset Management, Inc. (OTC Pink Sheets: BSSM) intends to grow shareholder value through accretive acquisitions in what it perceives to be highly profitable niche industries. Berkshire's next focus is in the health care sector.

Toward that end, Berkshire has executed a Letter of Intent (LOI) with Albion Real Estate Investment LLC (Albion) to acquire a controlling interest in the company. Albion is in the business of developing and managing state-of-the-art residences for seniors with Alzheimer's disease and related dementia. The company has been organized to develop home-like residential Alzheimer's facilities consisting of 60 or more units for residents with early through middle stages of Alzheimer's disease.

The first such facility will be located on Albion Road in Lincoln, Rhode Island. A special use permit has been granted by the town. This model has been designed as an alternative to the institutional type nursing home. Monthly costs will be less than the typical nursing care payment structure. Professionals with significant experience and expertise in the field will manage the health care division. The company expects to construct ten facilities in Rhode Island and Massachusetts over the next three to four years. The Lincoln, Rhode Island facility is expected to cost approximately $6,600,000 and have a value upon completion of approximately $12,000,000 including land and buildings. Each project is projected to have net operating income upon stabilization in excess of $1,500,000 per year.

Alzheimer's disease currently affects over 4.5 million people in the United States, and is expected to affect 14 million by the year 2050, as estimated by scientists at Rush-Presbyterian-St. Luke's Medical Center in Chicago and the U.S. Centers for Disease Control and Prevention. Presently there are in excess of 30,000 Alzheimer's patients in Rhode Island and 130,000 in Massachusetts. Most current facilities lack the design and management capabilities to accommodate the special needs of these patients.

The LOI is non-binding, and is subject to normal due diligence and negotiation of final terms. Closing of this transaction is expected to occur in the first quarter of 2004. It is expected that the construction of the first Alzheimer's disease facility will be completed approximately nine months after closing, and full occupancy is expected within nine months thereafter. Upon full occupancy the company expects significant annual positive cash flow. Sites for the next two facilities have been identified.

Berkshire intends to pursue additional acquisitions, and will make relevant announcements, as is appropriate.

This announcement contains "forward-looking statements." Words such as "anticipate," "believe," "estimate," "expect" and other similar expressions as they relate to the Company and its management are intended to identify such forward-looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that the statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are included with those mentioned in the Company's filings with the Securities and Exchange Commission.