Lane Company Forms Joint Venture with Flagstone Holdings to Advance Off-Campus Student Housing

ATLANTA (July 15, 2002) — The Lane Company, a leader in the multifamily housing sector, announced today a joint venture with Flagstone Holdings, a real estate company specializing in student housing. Lane/Flagstone Ventures will acquire and develop off-campus student housing in burgeoning college and university markets, focusing on student body populations of more than 10,000. Property acquisition targets represent a minimum purchase price of $8 million with 100 units or more.

"The initial focus of the venture is on acquisitions, which will soon expand to include the development of off-campus student housing in markets that represent fresh growth and expansion potential," said Grant Kornman, co-founder of Flagstone Holdings. "Attractive markets include major universities in the Southeast and Midwest, which are currently growing at rapid rate."

The off-campus student housing market is ripe for innovation. According to Tom Lewis, co-founder of Flagstone Holdings, student body populations are projected to grow by 20 percent over the next 10 years and college enrollment is predicted to increase by 14.4 percent during the same period.

Lane Company, one of America's premiere property management firms, brings more than 30 years of experience to the joint venture. It manages 32,000 diverse apartment units and has developed nearly $1 billion in multifamily projects, totaling more than 12,000 units.

"We are pleased to have found a partner that so seamlessly complements our core business," said Scott Levitt, Vice President, Lane Company. "The venture represents a solid combination of resources -- a fully integrated real estate firm with the focus of a specialized real estate firm, such as Flagstone, on the student market."

Lane Company is an award winning, vertically integrated, full-service real estate group active in the multifamily sector for more than 20 years. It manages 32,000 apartment units in a dozen states, including 13 Atlanta Housing Authority properties. Lane Company acquires, develops, constructs and manages multifamily properties for the benefit of its residents, associates, investment partners, shareholders, clients and the communities in which it operates. Lane Company has won numerous industry awards including being named Property Management Firm of the Year in 1999 by the National Association of Home Builders and a finalist for Development Firm of the Year in 2001.

Flagstone Holdings, a real estate firm co-founded by Grant Kornman and Tom Lewis, specializes in student housing and the off-campus student housing sector of the multifamily industry. Flagstone is able to deliver the skills needed through its grass roots efforts of obtaining critical insight into the student housing market by conducting quantitative analysis of target markets and campus market research.

For further information on Lane/Flagstone Ventures please contact Tom Lewis at (305) 858-6149 or visit the Flagstone Holdings website at www.flagstoneholdings.com.