Berkshire Income Realty to Acquire Multifamily Apartment Communities.

BOSTON -- Berkshire Income Realty, Inc. (AMEX:BIR.PR.A) (AMEX:BIR_pa) (AMEX:BIRPRA) (AMEX:BIR-A) (AMEX:BIR.A) (AMEX:BIR/PRA) announced today that the Company has signed agreements to purchase eight multifamily apartment communities from two unrelated third parties: four in Virginia, two in Maryland and two in Illinois.

The Virginia multifamily apartment communities range in size from 153 to 216 units. The closings on the four Virginia properties are expected to occur in October and November 2004. The aggregate purchase price for the Virginia multifamily apartment communities is $42,700,000, allocated as follows: $8,825,000 (Newport News), $18,950,000 (Hampton), $10,575,000 (Newport News) and $4,350,000 (Newport News).

Separately, the Company, through a to-be-formed joint venture with an affiliate of Equity Resource Investments, L.L.C., an unrelated third party, will acquire 100% of the outstanding general and limited partner interests in four limited partnerships (the "Partnerships") from Capital Realty Investors-II Limited Partnership ("CRI-II") via four separate purchase and sale agreements.

The Partnerships own two multifamily apartment communities located in each of Illinois and Maryland that range in size from 120 units to 216 units. The closing of each acquisition is conditioned upon the satisfaction of the conditions precedent to the other acquisitions and is subject to completion of due diligence and obtaining required government approvals. The closings will occur simultaneously and are expected to occur in December 2004. The aggregate purchase price to be paid by the joint venture for the Partnerships is $14,554,244, allocated as follows: $1,313,292 (Palatine, IL), $416,455 (Roselle, IL) and $7,769,720 and $5,054,677 (two properties in Burtonsville, MD).

The Company is a REIT whose objective is to acquire, operate, and rehabilitate multifamily apartment communities. The Company owns interests in ten such communities, of which four are located in the Baltimore/Washington, D.C. metropolitan area, one is located in Houston, Texas, two are located in Dallas, Texas, one is located in Austin, Texas, and two are located in the Ft. Lauderdale, Florida area.

This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about the Company. These statements involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are the ones listed in the Company's periodic reports filed with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and Quarterly Report on Form 10-Q for the three months ended June 30, 2004.