Novare Group, Andrews Urban Announce Preliminary Plans For Downtown Post Office Site

Two Mixed-use Towers will Bring Enhanced Post Office, New Residential, Hotel and Retail Options to Area

AUSTIN, Texas - Feb. 5, 2007 - Novare Group Holdings, LLC and Andrews Urban LLC (Novare/Andrews Urban) announced details today surrounding plans for the development of two high-density, mixed-use towers in the Republic Square area of downtown Austin, providing a new home with superior facilities for the downtown post office.

Novare/Andrews Urban expects to break ground this fall on a 35-story condominium tower at 6th and Nueces streets, one block west of the current post office. The development will house a redesigned post office on the ground floor at 5th and San Antonio streets. The residential tower at 6th and Nueces will contain approximately 400 homes and significant ground floor retail, including restaurant space. The new post office will include the latest in technology enhancements and provide a vehicular mail drop off area and ample customer parking.

The post office component of the development is expected to be completed in spring 2008; upon completion, the post office will move into the new space and cease operations in the current location at 6th and Guadalupe streets. At that time, Novare/Andrews Urban plans to start construction on a high-density, mixed-use tower on the current post office site. The developers anticipate the project will feature more than 500 homes and more than 100 hotel rooms, along with substantial ground-floor retail space.

"I've always said that these two blocks were tragically underutilized," said Austin Mayor Will Wynn. "I'm really pleased that Novare Group and Andrews Urban are delivering on the vision of a far more vibrant and urban environment in this part of downtown."

Novare/Andrews Urban is planning to incorporate the City of Austin's Great Streets program within the streetscape surrounding both projects. This will bring the area wider, pedestrian-friendly sidewalks with numerous trees, benches and bicycle racks.

"We feel we've planned two projects that will work for the United States Postal Service, the City, the downtown community and our partners," said Taylor Andrews, president of Andrews Urban. "This area is pivotal to the redevelopment of downtown, and helping to transform it is the type of challenge that both Novare Group and Andrews Urban embrace."

The United States Postal Service selected Novare/Andrews Urban in August 2006 through a competitive RFQ process to redevelop its current downtown location.

"We're extremely supportive of the initial designs that we've seen for the new post office," said Mike Wolfe of the United States Postal Service. "I feel confident that the new facility will be better suited for an urban area and will allow us to serve our customers more effectively."

"We're grateful for the cooperative spirit and enthusiasm the Postal Service has brought to this project," said Billy Holley, Novare's developer for Austin. "They've been very forward looking in their approach, and we're pleased to be involved with them in a development that will help further the City's goals for increasing the downtown residential presence and enhancing urban life."

Pricing of the residences at both projects will likely be comparable to 360, an attainably priced Novare/Andrews Urban condominium development currently underway at 3rd and Nueces streets. Prices at 360 start under $200,000 for a one-bedroom home and under $300,000 for a two-bedroom home. The 360 sales center will open in late February, with the first residents scheduled to move in during spring 2008. The 44-story tower will feature 430 homes and approximately 14,000 square feet of street-level retail space, including restaurant space. For more information about 360, please visit www.LifeSurroundsYou.com.

About Novare Group
The Post Office and 360 developments are joint ventures of Novare Group Holdings, LLC and Andrews Urban LLC. Novare Group is a leading developer of high-rise residential communities in U.S. urban markets, with more than 5,000 condominium homes under development. Elevating urban living to a new standard, the company's high-rise communities feature contemporary designs, rich amenities, and cutting-edge high technology featured at attainable price points. For more information, please visit the company's web site at www.novaregroup.com.

About Andrews Urban
Andrews Urban LLC is an Austin, Texas-based urban real estate development and investment firm dedicated to high-rise mixed-use development in Downtown Austin. With development partner Novare Group of Atlanta, Andrews Urban is currently developing more than 800 condominium homes and more than 40,000 square feet of urban retail in projects including 360 and Condominiums at 6th and Nueces. Its manager, Taylor Andrews, has worked in urban real estate investing for more than ten years, three of which were in Raleigh-Durham, NC and the remainder of which have been in Austin. Andrews has extensive experience in real estate advisory for high-net-worth individuals and significant entrepreneurial land investment experience. For more information, please visit the company's Web site at www.andrewsurban.com.