Fitch To Release Report on Las Ventanas Retirement Community, Nevada.

TAMPA, Fla. -- Fitch Ratings plans to release a nonrated descriptive report on the approximately $59.26 million Nevada Department of Business and Industry Development revenue bonds, series 2004. 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 Dec. 6 and Dec. 13 by Ziegler Capital Markets Group.

Las Ventanas Retirement Community (the corporation) will use the proceeds of the 2004 bonds and the proceeds of a $33.5 million bank loan provided by Sovereign Bank to purchase and complete phase two of a continuing care retirement community to be known as Las Ventanas Retirement Community in the Summerlin area of northwestern metropolitan Las Vegas, Nevada. The project is planned to consist of 180 independent living apartments, six independent living villas, 60 assisted living units, a 60-bed nursing center, and related common areas. Phase I of the project, consisting of 90 independent living apartments, has been completed and opened in July 2004. Phase II of the project is anticipated to be completed in February 2006. The primary strengths of the project include favorable demand indicators; limited construction risk as Phase I is completed; the experience of the nonprofit sponsor, Cornerstone Affiliates, the parent of American Baptist Homes of the West (ABHOW); and the experience of the developer and management company, Greystone Communities, Inc. (Greystone). The project's demand indicators are favorable with a low net market penetration rate of 2.8% as there is only one competitor currently operating in the market.

Main credit concerns include the traditional risks associated with start-up projects such as construction and fill-up delays. Additional risks include the high debt burden (until the bank loan is paid off with entrance fees), the relatively low amount of presales at 63.4% (Fitch typically sees 70% presales on start-up deals), and the fact that Las Ventanas will be the first continuing care retirement community charging an entrance fee in the market. Fitch believes that the lack of education in the market regarding the CCRC product can potentially hinder unit sales, as the consumers in the market may be unfamiliar with the product and its benefits.

Fitch believes that while start-up retirement communities do not possess the credit profile to be rated in the investment-grade category and the development and construction team assembled on Las Ventanas, as well as the experience of ABHOW, favorable market characteristics and lack of competition should allow the project to be successful.

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