FOR IMMEDIATE RELEASE

June 19, 2007

HARBOR GROUP INTERNATIONAL ACQUIRES 740 UNIT APARTMENT COMMUNITY IN INDIANAPOLIS

An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has acquired the 740-unit Lakeshore Apartments in Indianapolis, Indiana, from an institutional client of INVESCO, at a purchase price of $61.2 million.

HGI plans to invest an additional $4,070,000 into the property for interior and exterior upgrades.

“Lakeshore is in an ‘A+’ location and we expect to improve rents through a significant capital program,” said T. Richard Litton, Jr., President of HGI. “We look forward to adding value to the property through capital improvements and focused management.”

Lakeshore was built in 1989. The Property features multiple one and two bedroom floor plans with an average unit size of 752 square feet. Property amenities include garages and carports, two heated swimming pools, two clubhouses, a fitness center, a dog park and a car wash. All units include washers and dryers and patios/ balconies. The Property is currently 97% occupied.

HGI now owns 1304 units in three apartment communities in Indianapolis.

Harbor Group International, L.L.C. holds an investment portfolio in excess of $2 billion, including over 6.5 million square feet of office space throughout the United States, Canada and the United Kingdom, and more than 12,000 apartment units in the U.S.  The Company maintains offices in Norfolk, New York, Chicago, London, and Tel Aviv.  For more information, visit www.harborgroupint.com.

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