The Palisades(TM) Launches Phase Two Neighborhood Construction as Demand for Homes Quickly Outpaces Phase One Supply.

Only a few Phase One homes are left as The Palisades Introduces 12 New Neighborhoods, Including Tree Tops, an English-Themed, Gated Neighborhood of Downsized Luxury Homes by ArcadiA. Meanwhile, the Palisades Lifestyle Amenities Continue to Open

CHARLOTTE, N.C. -- In less than 18 months, The Palisades[TM] has emerged as Charlotte's most popular new community. For the 12-month period ending third quarter, 2006, The Palisades had one of the highest closing rates of any new Charlotte residential community in its price point, according to recent surveys. In addition, homes at The Palisades are selling in the framing stage. This is in direct contrast to the market norm for the Charlotte region, where new home sales are typically taking place after home construction is complete.

Over 100 homes are currently under construction at The Palisades - most pre-sold -- with lotteries and waiting lists in many neighborhoods the order of the day. By the end of 2006, over 185 families called The Palisades home, with many more looking for homes here.

To meet this overwhelming demand, The Palisades (www.thepalisades.info) has begun Phase Two neighborhood construction and will open 12 new neighborhoods this winter and next spring. This includes Tree Tops, Westerham, Montage, Eagles Landing and Bear Creek, five new gated neighborhoods featuring luxury homes. Also in Phase Two, D.R. Horton and Ryan Homes, new additions to The Palisades' builder guild, will open neighborhoods.

Meanwhile, only 22 Phase One inventory homes are left for purchase. Available at pricing that reflects 2005 and 2006 construction costs, these homes represent an unusual value.

Evidence of The Palisades' popularity with home buyers can be found throughout the Phase One neighborhoods. In the Turtle Point, Rusty Creek and Crosshaven neighborhoods from Phase One, most of the homes have sold and inventory is very limited, although some of the best home sites at Crosshaven have recently become available, including a selection with water views near the golf course. Turtle Point is nearly sold out, with a few homes available. And sales at Rusty Creek have been so brisk, The Palisades has already begun Phase Three construction in that neighborhood, with additional lots opening at Rusty Creek this winter.

At Ashton Oaks, the Phase One gated custom section at The Palisades, all 41 lots have been sold to builders. In the HomeArama custom section of Ashton Oaks (located on Grand Palisades Parkway) only one lot is still available out of 11. Of the homes in inventory at Ashton Oaks, five are move-in ready and the rest will be ready for homeowners within the next six months. All are within walking distance of the new Palisades Country Club clubhouse and The Tim Wilkison Signature Sports Complex, which hosted the 2006 Championships at The Palisades. This professional tennis tournament -- which featured such tennis greats as Jim Courier, John McEnroe, Todd Martin and Pat Cash -- will return to The Palisades in September, 2007. Homes in the Ashton Oaks inventory are priced at $879,900 to $1.77 million.

"At this price point, it's typical for homes to sell at or near completion. But demand for homes at The Palisades has been so strong, we are finding that many are selling in the framing stage, or earlier," said Chuck Graham of Newton Graham Consultants. "This is a much earlier stage than the rest of the market. Indeed, all homes at The Palisades are selling at a brisker pace than the market," Graham added.

The Charlotte new housing market is considered one of the strongest in the nation, but The Palisades is exceptional, even compared to the region. For the 12 months ending third quarter, 2006, The Palisades had one of the best closing rates in the Charlotte market within Quintile V (homes selling for more than $329,000), with 126 homes closed, at an average price of $517,000.

"Two other communities in that group had higher closing rates, but at a considerably lower average sales price," said Graham. He attributed The Palisades success to a number of factors, including its prime location in Charlotte's increasingly popular Southwest Growth Corridor.

"We are very proud of The Palisades and not surprised to see the overwhelmingly positive response to this community by Charlotte residents, or from the new residents to this area who have moved here to live at The Palisades," said Jim Medall, president of Rhein Medall Communities. "It's a very special place, and we're excited about the new neighborhoods that will be offered in Phase Two. My only recommendation to buyers would be to continue to get in early. Homes here are appreciating, and now is the time to buy."

Meanwhile, The Palisades has continued to offer exceptional lifestyle amenities:

* The Palisades Golf and Country Club clubhouse opened this November, just in time to host holiday events.

* The Tim Wilkison Signature Sports Complex opened in the spring (2006) and was host to the 2006 Championships at The Palisades, a major professional tennis tournament featuring several of the world's greatest tennis players over the age of 30.

* The soccer complex on Grand Palisades Parkway is nearly complete. The fields are currently in the grow-in phase and should be ready for play by summer, 2007.

* The Palisades Episcopal School will open fall 2007 in a temporary location on the grounds of the Tim Wilkison Signature Sports Complex, offering grades K-3 (with plans to add one grade each year) while fundraising is under way to build a permanent school on land donated by Rhein Palisades, LLC, on Grand Palisades Parkway.

* Construction of the Equestrian Center is anticipated to begin shortly and open by spring of 2007.

* This past spring, Rhein Medall Communities launched the first annual Rhein Medall prize for Community Art at The Palisades. Designs from the contest, originated by several of the Southeast's most talented and promising young artists and sculptors, were commissioned for fabrication. Soon, these sculptures will be woven into The Palisades' magnificent landscape.

And this summer, The Palisades Phase One residential communities and golf course were designated a Gold Audubon International Signature Sanctuary - one of only five in the world.

The new Phase Two neighborhoods will be available for sale over the next six months and all fulfill The Palisades' promise of offering unique neighborhoods characterized by beautiful homes, classic architecture and a distinct sense of place, located in an unparalleled setting that incorporates neighborhood parks, exceptional landscaping, woodlands and a wide array of lifestyle amenities. As the new neighborhoods open, a press release will be issued for each, providing detailed descriptive information. This information will also be available online at www.thepalisades.info .

Information on the new neighborhoods and available homes and home lots is available through Palisades Realty or online at www.thepalisades.info. Palisades Realty can be reached at 704 583-1111.

Rhein Medall Communities (www.rheinmedall.com) is nationally recognized for environmentally sensitive land planning that includes working with the natural topography of the land, respecting the natural beauty of the landscape and weaving open space into each community design. Rhein Interests was founded in Cincinnati, Ohio, by Robert C. Rhein. Mr. Rhein has had operations in the Carolinas for over 20 years as Rhein Interests, and in that time has earned a reputation as the region's premier residential land developer. In 2006, Rhein Interests' operations in the Carolinas were renamed Rhein Medall Communities, to reflect the hard work and dedication of the company's president, Jim Medall, who is now a co-owner of a new company with Robert C. Rhein, Rhein Medall Interests, LLC.

Known for developing carefully thought out, innovative projects, both Rhein Interests and Rhein Medall Communities are dedicated to setting the standard for the industry by creating communities in all price categories that consistently offer superior value, designed to surpass the test of time.

For additional information, contact Glenna Musante at [phone] or [phone] or [e-mail].