Garden State markets still have potential.

At Lincoln Equities, we're bullish on New Jersey and its commercial real estate markets. To illustrate how confident we are in the market's upside potential, we have recently formed a partnership with two of the world's most successful investment companies, Crow Family Holdings and INVESTCORP, to pursue new opportunities in this marketplace. Additionally, our confidence in this climate is reflected in Lincoln Equities decision to move forward with a 900,000 square foot spec office development in the Meadowlands.

There are several important fundamental factors that are fueling the state's continued growth in the commercial real estate market. A robust, diversified economy, limited new office product and New Jersey's position as a growing alternative to the escalating rents in New York are a few of the keys to the rebound in the real estate markets that began several years ago.

At Lincoln Equities, we are focusing our efforts in two areas: value-added redevelopment and new speculative development. In the value-added market, Lincoln Equities, and our joint venture partners, INVESTCORP and Crow Family Holdings, have enjoyed great success in our portfolio of nearly 1,600,000 square feet. Leasing activity is extremely strong at all of our properties, fueled by the high-tech/ Internet phenomenon which has created unprecedented demand for space and all of the other sectors in the economy which are also growing at a substantial pace.

We also are confident that there are still excellent buying opportunities in the market for repositioning Class B properties and plan to continue to make vaule-added acquisitions in the marketplace. We are targeting both prime markets as well as those that are not fully matured in addition to in fill sites in existing markets and building's with high rollover exposure all as ideal acquisition candidate.

Our view and it is one that is shared by our analysts and investment bankers, is that there will be increasing buying opportunity with the rise of interest rates. Indeed, it is very At Lincoln Equities, we're bullish on New Jersey and its commercial real estate markets. To illustrate how confident we are in the market's upside potential, we have recently formed a partnership with two of the world' s most successful investment companies, Crow Family Holdings and INVESTCORP, to pursue new opportunities in this marketplace. Additionally, our confidence in this climate is reflected in Lincoln Equities decision to move forward with a 900,00 square foot spec office development in the Meadowalands.

There are several important fundamental factors that are fueling the state's continued growth in the commercial real estate market. A robust diversified economy limited new office product and New Jersey's position as a growing alternative to the escalating rents in New York are a few of the keys to the rebound in the real estate marketsthat began several years ago.

At Lincoln Equities, we are focusing our efforts in two areas: value-added redevelopment and new speculative development. In the value-added market, Lincoln Equities, and our joint venture partners, INVESTCORP and Crow Family Holdings, have enjoyed great success in our portfolio of nearly 1,600,000 square feet Leasing activity is extremely strong at all of our properties fueled by the high-tech/Internet phenomenon which has created unprecedented demand for space and all of the other sectors in the economy which are also growing at a substantial pace.

We also are confident that there are still excellent buying opportunities in the market for repositioning Class B properties and plan to continue to make value addled acquisitions in the marketplace. We are targeting both prime markets as well as those that are not fully matured in addition to infill sites in existing markets and building's high rollover exposure all as ideal acquisition candidate.

Our view, and it is one that is shared by our analysts and investment bankers, is that there will also be increasing buying opportunity with the rise of interest rates. Indeed, it is very challenging in this climate to find good acquisitions that present the upside potential that will satisfy our objectives. But as monetary policy tightens, there will undoubtedly have to be an adjustment in the expectations of sellers in the market. Therefore yields will become more attractive to pension fund buyers, which is good news for more value-driven buyers like us who are prepared to take on more market risk.

with new Class A space in short supply and numerous large requirements in the marketplace Lincoln Equities plans to develop new "trophy" space that will address the pent-up demand in the region. Highland Cross at The Meadowlands, a Lincoln Equities corporate investment, is the largest spec development off the waterfront in New Jersey and will ultimately be the tallest office tower in the Meadowlands region. We have decided to commence construction and space this new development based on the tremendous demand for quality new space in the New York and New Jersey markets. Highland Cross will consist of two high-tech, 450,000 squarefoot, Class A office buildings that will also include a luxury hotel. With this development, along with the Meadows Office Complex, a new submarket comprising over 1,500,000 square feet of office space will have been created in the Meadowlands market.

By adopting a two-pronged strategy of focusing on both redevelopment and new Class A development, Lincoln Equities has positioned itself to remain one of the region's most active real estate operations. Based on all of the market's fundamentals, we remain very confident on New Jersey's outlook.