Novare Group Intensifies Focus
on Third Ward

Company announces plans for large mixed-use development

CHARLOTTE - December 13, 2006 - Novare Group, one of the Southeast's leading developers of high-rise residential communities, today announced expanded plans for the development of land it has assembled in Charlotte's Third Ward. The sites include one bounded by Church, Mint, First and Second streets, the location of the H.D. Power Building, and a second located at 222/288 South Church Street, which includes the Packard Building. The entire assemblage totals approximately 6.3 acres of land.

"We have been very intentional in targeting this neighborhood," said Tony Skillbeck, President of Novare Carolinas. "With the proposed plans to locate the West Park and the AAA-baseball stadium in Third Ward, both of which we strongly support, we believe this area will quickly achieve momentum that will spur increasing demand for development in all sectors. Novare Group wants to be on the forefront of that movement."

Novare Group's plans call for approximately 1,400 condominium units in three residential towers - two high-rise condominium towers with street-level retail and one tower that would be a development of Novare's TWELVE® Hotels & Residences subsidiary, comprising a boutique hotel of approximately 150 suites and approximately 300 condominium units. The residential towers are planned to address the new Third Ward Park. In addition, the development will also include a 300,000- to 400,000-square-foot Class-A office building at the corner of Church and West First streets and a retail and parking building at the corner of Mint and West First streets.

Demolition of the H.D. Power Building has already begun, and construction on the first tower is expected to begin in early summer 2007. More details on the first condominium community will be available in early 2007. The remaining buildings on the site will be developed on a progressive schedule, with the entire site projected to be completed in 2011.

As it concentrates on Third Ward, Novare Group and partner Faison Enterprises have decided to defer development of a high-rise hotel and condominium project they had proposed on a site at Seventh and College streets in Uptown Charlotte.

Novare Group's first development in Charlotte, Avenue, is under construction in Uptown and rising toward a topping-out in spring 2007. The 36-story high-rise, comprising 386 residences, is scheduled for completion in fall 2007 and will bring more than 6,000 square feet of retail to the neighborhood. Avenue is 95 percent under contract, with sell-out expected by year-end.

About Novare Group
Novare Group is a leading developer of high-rise residential communities in urban markets, with more than 5,000 condominium units under development in Atlanta, Austin, 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.