Chateau Communities Completes Debt Restructuring; CP Limited Partnership Issues Senior Notes.

Business Editors/Real Estate Writers

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Nov. 1, 2001

Chateau Communities (NYSE:CPJ), the nation's largest owner/operator of manufactured home communities, restructured the bulk of its $70 million, 7.54 percent senior unsecured notes scheduled to mature in November 2003.

Fifty million dollars of the loan now has an extended twenty-year maturity date of October 2021, at 8.3 percent interest.

On October 30, 2001, CP Limited Partnership, the operating partnership of Chateau, completed a private placement of $150 million aggregate principal amount of 7.125 percent senior unsecured notes due 2011. The net proceeds from the sale of the notes were used to repay a portion of the outstanding balance under a short-term acquisition credit facility incurred in connection with Chateau's acquisition of CWS Communities, Inc. in August 2001.

CEO Gary McDaniel noted: "Completion of this financing is in keeping with our commitment to a conservative debt structure. We are pleased to have extended some of our debt to mature in twenty years. Chateau is in an excellent position to accomplish our strategic goals going forward."

Because the notes were sold on a private-placement basis, the notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Headquartered in Greenwood Village, Colo., Chateau Communities is a fully integrated, self-administered real estate investment trust (REIT). Its portfolio consists of 222 communities, with an aggregate of approximately 70,900 residential homesites and 1,790 park model/RV sites. In addition, Chateau manages 40 manufactured home communities with approximately 8,700 residential homesites. The Company owns or has options on 9 greenfield development communities comprising approximately 3,500 sites for future development. Chateau operates in 37 states.

Visit Chateau Communities at www.chateaucomm.com.

The information in this news release contains forward-looking statements of the Company's plans, objectives, and expectations, which are dependent upon a number of factors, including that additional site expansions, community acquisition and development activities, and other new business initiatives are subject to a number of contingency factors such as the effects of national and local economic conditions, changes in interest rates, supply and demand for affordable housing, and the condition of the capital markets, all of which may affect the Company's ability to achieve its objectives.