CRITEF General Partners and CAPREIT announce increase in merger prices; Dominium urges BAC Holders to support the mergers.

ROCKVILLE, Md.--(BUSINESS WIRE)--Nov. 6, 1996--(AMEX: CRA, CRB, CRL)--The CRITEF partnerships, CAPREIT and Dominium have jointly announced CAPREIT's agreement to increase the consideration being offered by CAPREIT to BAC Holders in the proposed mergers between the CRITEF partnerships and affiliates of CAPREIT by an aggregate of approximately $6.5 million.

The increased offer will boost the redemption amounts payable to CRITEF BAC Holders in the proposed mergers by approximately $0.60 per BAC. If the Mergers are approved by the requisite vote of BAC Holders, each BAC Holder would now receive, net in cash, a minimum of $15.42 per BAC, in the case of CRITEF, Series I (CRA); $15.11 per BAC, in the case of CRITEF, Series II (CRB); and $15.73 per BAC, in the case of CRITEF III (CRL).

William B. Dockser, Chairman of CRI Inc., the sponsor of the CRITEF partnerships, said: "CAPREIT's improved offer pushes the merger prices to the higher end of the range of values of the CRITEF partnerships determined by the independent investment banking firm that provided the fairness opinions. The General Partners previously recommended the mergers as fair, and the additional monies now being offered to BAC Holders further strengthen our support."

Dominium, which previously opposed the mergers, was instrumental in negotiating the improved merger terms with CAPREIT and endorses and supports the revised merger terms. In accordance with a settlement of its various disputes with CAPREIT and the CRITEF partnerships, Dominium also has withdrawn its solicitation of proxies in opposition to the mergers.

Jack Safar, a partner in Dominium, said: "We are pleased to have played a role in securing an improved offer for the BAC Holders. We believe that the improved merger offer maximizes value for all BAC Holders and we support it. We recommend approval of the mergers and strongly encourage all BAC Holders to vote in favor of the improved mergers."

The CRITEF partnerships have rescheduled the special meetings of BAC Holders to vote on the proposed mergers to Nov. 27, 1996 and have set a new record date of Nov. 12, 1996 for BAC Holders eligible to vote at the special meetings. The meetings had originally been set for Oct. 29, 1996 and subsequently postponed to Nov. 8, 1996. Approval of the mergers requires the affirmative vote of the holders of a majority of the outstanding BACs of the respective CRITEF partnerships.

The CRITEF partnerships will soon mail to all BAC Holders of record on the record date a supplement to the CRITEF partnerships' Joint Proxy Statement describing, among other things, the improved Merger terms, the terms of and payments made in connection with, the Dominium settlement.

The CRITEF partnerships together hold 18 tax-exempt mortgage revenue bonds used to finance multifamily housing communities. Formed by C.R.I. Inc. in 1986 and 1987, the partnerships began trading on the American Stock Exchange on July 1, 1993.

CAPREIT, based in Rockville, Maryland, is a self-managed private real estate investment trust. CAPREIT owns 30 multifamily communities containing 7,512 units located in 10 states. In addition, CAPREIT manages another 39 apartment communities (including 14 of the CRITEF communities) for third-party owners. The largest investor in CAPREIT is Apollo Real Estate Investment Fund, L.P.

Dominium, through its affiliated companies, owns or manages approximately 14,000 multi-housing units across the country and has 25 years experience in real estate development and property management. In addition to its Minneapolis headquarters, Dominium has offices in Milwaukee, Chicago, Atlanta and Miami.

CONTACT: Susan Backman

CRI

for the CRITEF Partnerships

301/231-0231; or

James T. Pastore

Pastore Communications Group

202/546-6451

fax: [phone]

e-mail: [e-mail]

or

Les Schupak

KCSA Public Relations

212/682-6565, ext. 207

or

Arthur B. Crozier 

Georgeson & Company Inc.

212/440-9861