Fitch Releases Nonrated Descriptive Report on Fox Run at Orchard Park, Orchard Park, NY.

NEW YORK -- Fitch Ratings released its nonrated descriptive report on the approximately $79.9 million Erie County Industrial Development Agency revenue bonds (Orchard Park CCRC, Inc. Project), series 2006. Fitch's descriptive credit report provides analysis 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. The bonds are expected to be priced the week of April 17, 2006 by Ziegler Capital Markets Group.

Orchard Park CCRC, Inc. (the corporation) will use the proceeds of the series 2006 A-D bonds, together with other funds, to construct and equip a type A continuing care retirement community (CCRC) in the town of Orchard Park, NY, a suburb of the city of Buffalo, to be called Fox Run at Orchard Park (the community). The corporation is a New York not for-profit corporation formed in 2000 by the United Church Home Society, Inc. (UCHS). UCHS was itself formed in 1877 by members of six German evangelical churches in western New York and previously owned and operated the United Church Manor, a 49-unit low-income senior housing facility in West Seneca, NY. UCHS has no legal obligation to provide financial guaranties or other types of support to the corporation or community; however, UCHS has transferred funds in the past to its related organizations as necessary to meet operating costs. The community, which will be composed of a two-story residential and commons building and a two-story health care building, will include 180 independent living units (ILUs) (150 apartments and 30 patio homes), 51 enriched housing units (EHUs) (36 traditional units and 15 memory support units), and 50 skilled nursing units (24 semiprivate beds and 26 private beds), on a 52-acre site with preserved wetlands.

The primary strengths of the community include solid presales of 70%, which represents 126 units and 189 depositors as of March 10, 2006, sound service area characteristics, and the experience of the development and management company, New Life Management & Development, Inc. (New Life), which has provided development services for more than 4,500 senior living units. The community's demand indicators are favorable, with a reasonable market penetration rate of 8.2%.

Main credit concerns include the traditional risks associated with start-up CCRC projects, such as construction and fill-up delays. Additional risks include the high debt burden until the variable-rate bonds are redeemed with initial entrance fee proceeds. Marketing of the community commenced in February 2003, and unit presales began in September 2004.

Fitch Ratings believes that while start-up CCRCs do not possess the credit profile necessary to be rated investment grade, the development, finance, and construction team and favorable market characteristics should allow development of the community to succeed.

For a copy of Fitch's credit analysis, visit the Fitch Ratings web site at www.fitchratings.com or contact Market Services at [phone].

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.