NOVARE GROUP PURCHASES DUKE POWER BUILDING

Company broadens its commitment in Uptown

Charlotte, NC - March 27, 2006 - Novare Group announced today that it has acquired a parcel of land in Uptown Charlotte, bounded by Church, Mint, First and Second streets.

The site was purchased from the Dilweg Companies and includes the H.D. Power Building, for many years the headquarters of Duke Power until its recent move to the Energy Center. Close by is the proposed location for Third Ward Park, and a Triple-A baseball stadium is also under consideration for the area. The site is south of the Packard Building, at Third and Church streets, which Novare purchased in November 2005.

"This is a great site in an area where we have already made a strong commitment," said John Long, chief investment officer for Novare Group. "The proposed plans to relocate Third Ward Park closer to Tryon Street at Church and Third streets made it even more attractive to us. We believe this will add to the vitality of Uptown by making the park more proximate to those who work in Charlotte as well as those who live in Third Ward. The plan to add the excitement of the baseball stadium and the idea of moving the park one block east toward Tryon had a lot to do with our decision to purchase this incredible tract of land."

Plans for the site call for three high-rise condominium towers, to be delivered in phases. "We continue to focus at this time on the sellout and completion of Avenue, as well as the start of construction on TWELVE Charlotte," said Long. Avenue is Novare's 386-unit condominium tower under construction at Church and Fifth streets, with the sales office located at the corner of Fifth and Graham streets. It is slated for completion in fall 2007. In February, Novare announced its intention to introduce its TWELVE Hotels and Residences concept, which combines condominiums with a boutique hotel, to Charlotte in First Ward at Seventh and College streets. The project is a joint venture with Faison Enterprises and Levine Properties and is expected to begin later this year with completion in 2008.

The Duke Power site is the fourth Charlotte acquisition for Novare Group, which announced its permanence in Charlotte with the recent establishment of Novare Carolinas Development, LLC. Long-time Charlotte developer Tony Skillbeck heads the division and will lead Novare's developments in the Queen City along with the Novare developer for the market, Conor McNally.

About Novare Novare Group is a leading developer of high-rise residential communities in southeastern U.S. urban markets, with more than 5,000 condominium units under development in Atlanta, Charlotte, Nashville and Tampa. Elevating urban living to a new standard, the Company's high-rise communities feature contemporary designs, rich amenities, and cutting-edge high technology features at attainable price points. For more information, please visit the Company's Web site at www.novaregroup.com