ORION Emerges: New Luxury Vertical Residences to Change the Face of Houston Skyline.

HOUSTON -- Groundbreaking ceremonies, scheduled for Wednesday, Dec. 8 at 12:30 p.m., will usher in the advent of a significant addition to the Houston skyline. Appropriately named ORION, the first of two 37-story residences will be located on Memorial along the Buffalo Bayou at Asbury Place.

Each tower, with stunning views of River Oaks and Houston's vibrant downtown, will include 180 luxury residences priced to over $5 million. The foundation for the $425 million project will be poured during the first quarter of 2005, with vertical construction beginning in the spring. The first tower is slated for completion in the late spring of 2007 with the second tower breaking ground next winter. ORION will be developed by ORION Towers Tarragon LLC, a New York-based real estate company, a partnership between Asbury Place Development and Tarragon Corporation (Nasdaq:TARR), which has an investment portfolio valued at more than $1.2 billion.

"As a native Texan, I am thrilled to be working here again and to be affiliated with such a magnificent project," said Jim Cauley, president of Tarragon South Development Corp. "Tarragon specializes in this type of development and we are pleased to bring ORION to Houstonians."

ORION's 10-acre setting will be made even more desirable by way of gardens, flowers, lush foliage and parks within parks. Its close proximity to the many pleasures the city has to offer -- theatres, museums, world-class golf courses, major sports arenas, shopping and fine dining -- offer ORION's residents a highly desirable location.

"ORION is the legacy of River Oaks -- it's the River Oaks for the next generation of those seeking Houston's finest living," said David Spiers, co-developer of ORION.

Backed by a team of some of the nation's most accomplished designers, engineers and builders, ORION is destined to be an iconic landmark for Houston. A number of prestigious firms have been assembled to give ORION its distinctive look: Architectural Services International; Manhattan Construction Company; CBM Engineers; and Keiji Asakura, ASLA Landscaping. These widely respected firms share a client list that includes the IBM Tower in Singapore, Bush Presidential Library, Reliant Stadium, Washington National Airport, United States Capitol Visitors Center, The Pacific Design Center, Toyota Center and Botanic Garden.

ORION has been designed by world-renowned architect Ede I. Nemeti, president and chief operations officer of Architectural Services International Inc. The building's facade will feature a magnificent soaring Pegasus between art deco spheres, while its finishes, services and common areas have the look and feel of a world class five-star hotel. Generous balconies are complete with Viking Gas equipped summer kitchens and views to the park, River Oaks, downtown, the Medical Center and the Galleria area. Many residences have views in two directions and some with 180 degree sweeps.

"Ede Nemeti has designed and built internationally recognized projects in 24 countries. ORION unites his signature touch with leading developers and designers to create the highest standards of living," said Robert Day, co-developer of ORION. "These residences will draw buyers seeking the finest construction available and the exciting lifestyle that comes with living in the heart of the River Oaks area."

Two gleaming structures will feature elegantly proportioned residences complete with innovative design features and the latest in Smart House technology, representing a benchmark in luxury vertical palaces through unparalleled space, design, innovation and sumptuous amenities. Owners may choose from six floor plans encompassing 1,687 to 8,200 square feet and ranging from two to five bedrooms. Each residence is filled with daylight and is complimented by well thought out appointments -- glass railings, generous balconies, European-style loggias, French doors, gorgeous baths clad in travertine marble, captivating cityscapes, private and semiprivate elevator foyers, 11-inch ceilings couffered and vaulted with recessed lighting, Delacassa cabinetry, Viking appliances, custom-cut granite counters and an outdoor summer kitchen with a Viking gas grill.

Within ORION's pampered environs, owners will find a number of sophisticated building amenities and personal services, including an around-the-clock manned front desk, common area monitoring systems, five-star concierge services, 24-hour valet parking, luxury hotel-style property management services, a residents-only ORION Clubhouse offering the features and service of a grand private social club, a business center, library, Olympic-size pool, landscaped terraces, a state-of-the-art fitness center and an aerobics studio.

ORION's sales center was recognized by The National Sales and Marketing Council Awards and placed in the following categories: Best Brochure over $500,000, Best Color Ads, Best Sales Office, Best Signage, Best Attached Community Urban and Best Logo Design.

The award-winning sales center is located at Eight Asbury Place, Houston, Texas, and is open daily from 10 a.m. - 6 p.m. Private appointments to tour the center can be made at 713-880-1616.

Rendering and interior photos available upon request.

About Tarragon Corporation

Tarragon Corporation is a leading homebuilder specializing in the development and marketing of residential communities in high-density, urban in-fill locations in Florida, the Northeast, Texas and Tennessee. Tarragon also owns and operates an investment portfolio of approximately 14,000 apartments and 1.4 million square feet of commercial space, valued at more than $1 billion. To learn more about Tarragon Corporation, visit www.tarragoncorp.com.