Home Properties Announces Acquisition.

ROCHESTER, N.Y. -- Home Properties, Inc. (NYSE:HME) announced that on November 20, 2006, it purchased Chesapeake at the Berkshires apartment community in Glen Burnie, Maryland, with a total of 469 units. The property is now called The Coves at Chesapeake.

The Coves at Chesapeake was purchased for $67.1 million in cash, including closing costs, which equates to approximately $143,100 per apartment unit. The property is currently 93.1% occupied at monthly rents averaging $1,148.

The Coves was built in three phases on three separate parcels between 1976 and 1982. It consists of 64 two-story townhomes. The property is located approximately six miles south of downtown Baltimore in a mature residential area with shopping, recreation and public schools within a few minutes' drive. Interstate 97, with connection to Interstate 695, is within one-half mile. Buildings are of wood frame construction on poured concrete slabs with brick and aluminum exteriors and pitched asphalt-shingled roofs. The townhome unit mix consists of 242 two-bedroom units and 227 three-bedroom units. The average unit size is 988 square feet. All units have individually metered electric heat, electric central air conditioning units, and an electric-powered 30-gallon hot water heater. Each unit has a washer and dryer. Amenities include two Olympic-size swimming pools, a fitness facility, community center, multi-purpose sports court and three playground areas.

During the first four years of ownership, the Company expects to spend a total of approximately $6.7 million, in addition to normal capital expenditures, to correct deferred maintenance; upgrade kitchens and baths; replace siding, window and entry doors and some HVAC; improve signage and landscaping to upgrade the property's curb appeal; and upgrade security. Management anticipates a 5.7% weighted average first year capitalization rate on this acquisition, a positive spread over the previously announced 4.1% convertible note offering completed in October, 2006 which was the source of proceeds for this acquisition. (The return is calculated after allocating 3.0% of rental revenues for management and overhead expenses and before normalized capital expenditures of approximately $525 per unit annually.)

This release contains forward-looking statements. Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that may cause actual results to differ include general economic and local real estate conditions, weather, other conditions that might affect operating expenses, the timely completion of repositioning activities within anticipated budgets, the actual pace of future acquisitions and sales, and continued access to capital to fund growth.

Home Properties is a publicly traded apartment real estate investment trust that owns, operates, acquires and rehabilitates apartment communities primarily in selected Northeast, Mid-Atlantic and Southeast Florida markets. Currently, Home Properties operates 145 communities containing 43,691 apartment units. Of these, 40,122 units in 140 communities are owned directly by the Company; 868 units are partially owned and managed by the Company as general partner, and 2,701 units are managed for other owners. For more information, visit Home Properties' Web site at www.homeproperties.com.