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HGI News

FOR IMMEDIATE RELEASE

March 31, 2008

Harbor Group International Acquires Two Apartment
Communities In Houston, Texas

NORFOLK, Virginia – March 31, 2008, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that an affiliate of the company has acquired Baybrook Village I and Baybrook Village II located in Houston, Texas, from an affiliate of Newport Ventures. The properties contain 408 and 368 units respectively.

Russell D. Jones, of Apartment Realty Advisors, brokered the transaction.

“ Baybrook Village I and Baybrook Village II represent an opportunity to acquire a critical mass of very well located units,” said T. Richard Litton, Jr., President of Harbor Group. “We look forward to adding value to the properties through capital enhancements and focused management.”

Harbor Group plans to invest an additional $2.5 million into the properties for interior and exterior upgrades.

Baybrook Village I and Baybrook Village II were built simultaneously by renowned Houston developer Harold Farb in 1980. Baybrook Village I has one and two bedroom floor plans with an average size of 771 square feet and is currently 91% occupied. Baybrook Village II has one and two bedroom floor plans with an average size of 831 square feet and is currently 92% occupied. The amenities at each property include two swimming pools, two clothes care centers and a fitness center as well as walk-in closets, ceiling fans, patios and balconies and full size washer/dryer connections.

The acquisition of Baybrook Village I and Baybrook Village II reflect Harbor Group’s continued expansion in the Texas markets. In addition to Baybrook Village I and Baybrook Village II, the Company owns ten apartment communities in Dallas, Houston, San Antonio and Austin, containing 3,378 units.

Harbor Group International, LLC is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $2.0 billion. The Company’s real estate holdings include over 8.0 million square feet of commercial space and approximately 12,000 apartment units. Harbor Group is headquartered in Norfolk, Virginia with offices in New York, Chicago, London and Tel Aviv. For additional information, please visit www.harborgroupint.com.


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Harbor Group International, LLC provides real estate management and real estate investment opportunities and services and is not affiliated with Harbour Group Industries, Inc. (whose website may be found at www.harbourgroup.com), which offers investment services in connection with the acquisition of, development and operation of industrial and manufacturing companies.