Fitch Places Security Capital & Storage USA On Rtg Watch Pos.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 18, 2001

The `BBB' rating for $700 million outstanding senior unsecured notes of Security Capital Group Inc. (NYSE:SCZ) and the `BBB' rating for $600 million outstanding senior unsecured notes of SUSA Partnership LP, the principal operating subsidiary of Storage USA (NYSE:SUS) have been placed on Rating Watch Positive by Fitch following the announcement that General Electric Capital Corp. (GECC), General Electric Co.'s (GE) financial services subsidiary, has agreed to acquire Security Capital Group for $4 billion.

General Electric has been increasing its real estate holdings within its GE Commercial Real Estate unit, which now totals approximately $24 billion. GECC's acquisition strategy has centered on amassing large positions in what GE believes are stable real estate holdings that include grocery-anchored retail, self-storage and parking.

In October 2001, GECC formed a joint venture with the nation's largest shopping center REIT, Kimco Realty Trust, to acquire established neighborhood shopping centers. Additionally, in August 2001, GE Capital acquired Franchise Finance Corp. of America for $2.1 billion expanding its lending business to retail franchises.

Security Capital Group (the Company or SCG), with approximately $5 billion in assets, is a real estate investment and operating company with holdings in public REITs, several private real estate operating companies, as well as various managed real estate funds. Currently, SCG's REIT investments include a 29% interest in ProLogis Trust (PLD), a 60% interest in Regency Centers Corp. (REG), and a 43% interest in Storage USA (SUS).

On Dec. 5, 2001, Storage USA Inc., Storage USA Trust and SUSA Partnership L.P. (collectively, SUS) entered into a Purchase and Sale Agreement with the Company, pursuant to which Security Capital would acquire the remaining 57% interest in SUS it does not already own, with Security Capital then owning 100% of the storage REIT.

Additionally, Security Capital has investments in several wholly owned subsidiaries (BelmontCorp, and InterPark) as well as an investment owning 35% of a private real estate company (SC-European Realty). For more information on SCZ or SUS, please refer to Fitch press release dated Nov. 26, 2001 available on "www.fitchratings.com."

Based in Stamford, Conn., GECC is the largest non-bank financial services company in the world with approximately $410 billion in assets. The company has significant market positions in commercial and consumer finance, specialty finance, which includes real estate, as well as insurance.