The Crosland Group and Celebration Associates Form Strategic Alliance

Charlotte, N.C. (August 23, 2001) - Crosland, Inc., a private, diversified real estate investment and management company with extensive development experience, and Celebration Associates, LLC, a leading advisor and developer of mixed-use, master-planned communities in the Southeast, announced today that they have formed a strategic alliance to collaborate on select real estate projects.

Crosland will invest in select vertical development opportunities within master-planned communities, which are being managed by Celebration. Initial efforts are already underway on the Baxter Health Campus at the Village of Baxter in Fort Mill, S.C., with several other opportunities currently under evaluation.

“We are excited to be entering into this relationship with Celebration Associates,” said Todd Mansfield, CEO of Crosland. “They have a long-standing record with high quality villages and have been able to create a true sense of place in each of their developments. Through collaboration, we feel we can provide enhanced products and services to our clients and partners.”

Charles Adams, managing principal with Celebration Associates, said, “Our firm is pleased to have the opportunity to form this alliance with The Crosland Group. Their 64-year record of excellence and depth of experience in retail, commercial and residential development will enhance our ability to realize the full potential of the communities in which we are involved.”

Celebration Associates, based in Fort Mill, S.C., was founded by former Disney executives who oversaw the development of the Town of Celebration, a widely recognized community near Orlando, Fla., built by The Walt Disney Company. Crosland’s Todd Mansfield worked together with the principals at Celebration Associates for eight years at Disney.

The first collaborative venture is Baxter Health Campus, a 15.5-acre project off Sutton Road in the Village of Baxter. When complete, the campus will comprise six buildings totaling 140,000 square feet to be occupied by Piedmont Health Systems. The first building, featuring doctors’ offices and an urgent care clinic, is expected to break ground in September of this year, with occupancy projected for the second quarter of 2002.

The next anticipated undertaking is the Pinehurst Golf Village at Aberdeen, being developed together with The Pinehurst Company. Celebration and Lillian Floyd Homes, Crosland’s homebuilding affiliate, plan to build 230 homes and condominiums there, while Crosland’s retail and commercial divisions will work with Celebration on 75,000 square feet of mixed-use space incorporating restaurants, offices and retail stores. The Pinehurst Golf Village also will include two championship golf courses, a golf academy, a 100-room lodge and a clubhouse with 20 guest rooms. It is anticipated to be substantially complete by summer of 2005, in time for the return of the Men’s U.S. Open to the resort.

According to Pinehurst Company president Pat Corso, “We are enthusiastic about our collaboration with The Crosland Group and Celebration Associates. Their alliance provides us with the knowledge, experience and skill required for a project of this magnitude.”

Celebration Associates, is a leading advisor and developer of mixed-use, master-planned communities and villages. Celebration’s principals and associates have extensive expertise in homebuilding, multi-family, retail, office, and seniors housing that they occasionally develop in and around the communities they manage. The firm’s current large-scale projects under management include the Governor’s Club, a 2,000-acre development near Chapel Hill, N.C., and the Village of Baxter, part of the 7,000-acre Clear Springs Plan in Fort Mill, S.C. Celebration communities are known for their natural amenities such as parks, walking trails and golf courses. Most incorporate community cornerstones such as educational, technological and health care facilities. Through its alliance with The Pinehurst Company, Celebration Associates also is involved in resort village development at Pinehurst, N.C., The Homestead in Hot Springs, Vir., and Daufuskie Island Club and Resort near Hilton Head, S.C.