Chateau Communities Declares Dividend.

Business Editors

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Sept. 22, 2003

The Board of Directors of Chateau Communities, Inc., (NYSE:CPJ), a fully integrated, self-administered real estate investment trust (REIT), specializing in the ownership and management of manufactured home communities, today announced the establishment of September 30, 2003, as the record date for a dividend to be paid at the rate of $.55 per share, per quarter, covering the period from July 1, 2003, through the day prior to the closing date of the merger, contemplated by the merger agreement between our company and Hometown America, L.L.C. The payment of the dividend is conditioned upon the closing of the merger, which is subject to the satisfaction of the terms and conditions specified in the merger agreement.

Headquartered in Greenwood Village, Colorado, Chateau Communities is a fully integrated, self-administered real estate investment trust (REIT), and the largest owner and operator of manufactured home communities in the U.S. Its portfolio consists of 223 communities, with an aggregate of approximately 72,300 residential homesites and 1,400 park model/RV sites, and 2 managed communities with approximately 400 sites. In addition, the Company owns 11 greenfield development communities with approximately 4,600 sites when fully developed. Chateau Communities operates in 35 states.

Cautionary Statement Concerning Forward-Looking Information

This press release (including information incorporated by reference) contains certain forward-looking statements, including relating to the financial condition, results of operations, plans, objectives, future performance and businesses of the Company, as well as information relating to the merger, the merger agreement and the other transactions contemplated by the merger agreement, including, statements concerning the expected closing of the merger, the conduct of the business of the Company if the merger is not completed and tax consequences of the merger. These statements include statements regarding the intent, belief or current expectations of the Company and members of the Company's management team, as well as the assumptions on which those statements are based. Words such as "believes," "expects," "anticipate," "intends," "plans," "estimates" and variations of such words and similar words also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties; actual events and results may differ materially from those contemplated by the forward-looking statements.

We caution you not to place undue reliance on any such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements in this press release to reflect changes in assumptions, the occurrence of unanticipated events, or changes in future operating results over time. Such statements speak only as of the date that they are made.

The preferred units which may be obtained by unit holders of preferred units of the Company in connection with the merger will not be registered under the Securities Act of 1933 or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell and is not an offering or a solicitation of an offering in respect of such securities and should not be construed as an offering of any kind or the solicitation of an offer to buy in any state or jurisdiction to any person to whom it is unlawful to make such offer or solicitation.

The Company has filed a proxy statement, including a supplement thereto, and other relevant documents concerning its merger with a subsidiary of Hometown America, L.L.C. with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED IN THE FUTURE WITH THE SEC BECAUSE THOSE DOCUMENTS CONTAIN IMPORTANT INFORMATION. D.F. King & Co., Inc. was engaged as the Company's proxy solicitor in connection with the solicitation of proxies from Company stockholders relating to the proposed transaction. Proxies may also be solicited on behalf of the Company by members of its board of directors and executive officers. Information about such persons can be found in the Company's definitive proxy statement relating to its 2003 Annual Meeting of Stockholders, which is available without charge through the SEC's Internet website at http://www.sec.gov or through the Company's Internet website at http://www.chateaucomm.com.

Investors can obtain the proxy statement and other relevant documents, including the merger agreement relating to the proposed transaction, without charge through the SEC's Internet website at http://www.sec.gov or through the Company's Internet website at http://www.chateaucomm.com.