Fitch Ratings: Non-Rated Descriptive Report on Redstone Village - AL.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 16, 2002

Fitch Ratings has released its non-rated descriptive report on the approximately $54 million Special Health Care Facilities Financing Authority of the City of Huntsville, Redstone Village Revenue Bonds (Redstone Village Project) Series 2002A through Series 2002D. Fitch's descriptive credit analysis provides analyses of significant credit factors and includes Fitch's evaluation of the strengths and risks surrounding this credit. No request was made for a rating on this transaction, and Fitch did not review all information or complete all procedures necessary to reach a final credit rating. Generally, Fitch regards unenhanced debt issued with financial characteristics similar to the described facility as being below investment grade.

Through this financing, Redstone Village (Redstone), a continuing care retirement community (CCRC) in Huntsville, AL will be constructed to service retired military officers from the region and from other areas of the United States.

Primary credit strengths include the market niche provided by a military affinity, the development site's favorable location, solid pre-sales, and experience of the development and management company. The CCRC will be open to retired military officers, and is one of nine communities nationwide that is military focused. The location is very favorable due to its affordability and proximity to military installations and recreational activities. Pre-sales are strong at 70% through September 2002 and included marketing efforts primarily focused within a 50 mile radius of the proposed community, leaving a national market untapped. Marketing efforts are led by Greystone Communities Inc. (Greystone), an experienced development/management company. In addition, Fitch believes future sales will continue at a faster pace once construction begins.

Credit concerns are standard for a start-up CCRC and focus on potential construction and fill-up delays, as well as general uncertainties surrounding most start-up communities. Other concerns include a relatively competitive market with a type A CCRC expected to open in January 2003 in its primary market area (PMA) and several stand-alone assisted and nursing facilities in the PMA.

Management forecasts profitability by 2006 after a 21 month fill up period. Fitch believes Redstone Village will be able to achieve financial results similar to management's forecast and adequately service its debt over the forecast period.

For a copy of the credit analysis, please visit Fitch's web site at 'www.fitchratings.com' or contact Market Services at 1-800-853-4824.