Court rejects Dominium's motion to delay CAPREIT-CRITEF merger.

ROCKVILLE, MD--(BUSINESS WIRE)--Oct. 21, 1996--A Federal Magistrate for the U.S. District Court of Minnesota has denied Dominium Tax Exempt Fund's motion for expedited discovery that could have delayed BAC Holders of CRITEF I, II, and III Funds' (ASE:CRA) approval of proposed mergers with Capital Apartments Properties Inc. (CAPREIT) to be voted upon October 29.

The Court Order was particularly critical of Dominium's actions. Citing a nine-month series of maneuvers on the part of Dominium, Judge Jonathan G. Lebedoff concluded in yesterday's Order that Dominium already has "virtually all the information it now seeks."

The judge added: "The discovery requested was doubtless calculated to . . . interrupt the solicitation activity of the BAC Holders in advance of the October 29th meetings."

Judge Lebedoff then cited this week's opinion of the Southern District of New York which found that Dominium's correspondence to BAC Holders may have contained numerous inaccuracies.

Referring to the harm that BAC Holders faced as a result of Dominium's actions, the Minnesota Court said: "The BAC Holders who fought long and hard in the Delaware action for a settlement agreement which maximizes their interests could be irreparably injured if one dissident BAC holder (Dominium) of a mere 300 shares with only $l,500 at stake, who did not even opt out of the class, can derail the CAPREIT offer."

Commenting on the Court's ruling, Richard L. Kadish, President of CAPREIT, stated: "The Court in Dominium's own home state of Minnesota has reaffirmed the New York Court's opinion in the same week. Both support what we have been saying all along--Dominium has not been acting in good faith, has no real interest in the Funds or their BAC Holders and has simply tried to obtain some unique financial benefit for itself.

"I am very pleased at how the Courts have demonstrated a recognition of Dominium's self-serving behavior. We can now proceed with the meetings scheduled for October 29 and hopefully come to closure on the mergers."

CAPREIT owns, develops and manages multifamily garden-style and townhome communities throughout the Midwest, Mid-Atlantic, Northeast and Southeast United States. CAPREIT currently owns and manages 30 properties with 7,512 housing units. CAPREIT also manages an additional 39 apartment communities on behalf of third-party owners.

CONTACT: CAPREIT

Richard L. Kadish, 301/231-8700

or

KSCA 

Leslie A. Schupak, Phone: [phone] ext. 207

Fax: [phone]

E-Mail: [e-mail]