FOR IMMEDIATE RELEASE

August 16, 2007

HARBOR GROUP INTERNATIONAL FINDS SUCCESS IN OFFICE CONDO CONVERSION

BOCA RATON, Florida – When Harbor Group International, LLC (HGI) acquired Sanctuary Centre office park in 2001, the company had no idea that an office condominium conversion would become the exit strategy.

The five-building office complex contains 180,000 square feet and features a glass façade with covered parking and easy access to I-95. It is located in an affluent area and was 91% leased at the time HGI acquired the asset for $23 million.

“Within a couple years after our acquisition, several large tenants left unexpectedly, and the market softened. It left us in an awkward position. When leasing efforts fell short, we began to examine other options,” said Jordan Slone, Chairman and CEO of Harbor Group International. “That’s when we explored converting the property to office condos. Feedback from interested tenants was positive.”

“Office condos provide significant advantages over leased office space, and that value resonated with our tenants,” said Slone. “Instead of making lease payments and never seeing the money again, the tenant could own the space and make mortgage payments.”

Within one year, more than 55% of the property was sold as condominiums under the direction of John Bell and Don Cartwright, currently of DTZ Rockwood. The balance of the property was recently sold to George Sacks of Commercial Florida Realty, Inc.  Sacks intends to lease the purchased space.  In total, HGI grossed approximately $36 million on the office condo sales.

Harbor Group International, LLC 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.