FOR IMMEDIATE RELEASE

December 20, 2007

Harbor Group International Acquires Majority Interest In The Mansions Of Shadowbriar Apartment Community In Houston

NORFOLK, VA, December 20, 2007, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that an affiliate of the Company has acquired a 90% interest in the 259-unit Mansions of Shadowbriar apartment community in Houston, Texas. The property was acquired in partnership with Mosaic Residential, Inc.

“Harbor Group remains committed to several high-growth markets in the U.S. where apartment fundamentals remain strong, including Houston,” said T. Richard Litton, Jr., President of the Company. “The Mansions of Shadowbriar community fits our profile of a well-located, solid-designed product in a growing and vibrant market. We are pleased with our ability to locate and close this purchase in less than 30 days.”

The Mansions of Shadowbriar was originally built in 1982 as a 328-unit condominium community. Today, the community has 259 apartment homes and 69 individually owned condominiums. The community features one, two and three bedroom floor plans with an average unit size of 1,004 square feet. Amenities and features include a clubhouse, two swimming pools, wood-burning fireplaces, full size washer and dryer connections, and private residence entrances. The community is currently 93.5% occupied.

Plans call for an investment of $1.7 million into the community in various interior and exterior enhancements.

The purchase of the Mansions of Shadowbriar continues Harbor Group’s expansion in Texas. Following the acquisition, Harbor Group owns 2,880 units in eight apartment communities throughout Dallas, Houston and San Antonio.

Harbor Group International, LLC is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $2 billion. The Company’s real estate holdings include over 6.5 million square feet of office space and more than 14,000 apartment units.  Harbor Group is headquartered in Norfolk, VA with offices in New York, Chicago, London and Tel Aviv. For additional information, please visit www.harborgroupint.com.

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