Charles Knight Quotations

We are providing this extra level of detail about the recent property sales to give our shareholders and analysts a more complete view of one element of the value associated with each of these sales. Though we have not historically provided this level of detail on specific sales, in view of our recently announced plan of liquidation adopted by our Board of Directors, we understand that shareholders are asking for this additional information, and we're pleased to provide it.

Basically they're water sprays that release compressed air and water. The compressed air expands and releases energy as it is sprayed, and that causes the cooling to cause the water to form snow.

Anybody who accepts mediocrity -- in school, on the job, in life -- is a person who compromises, and when the leader compromises, the whole organization compromises.

Our fourth quarter operating results were right in line with our expectations. We continue to see improved leasing activities, and our operations continue to become more efficient with our new third-party property managers. The trends in all our markets are positive.

With five people covering the entire state of South Carolina, we're not going to be able to check them as often as we'd like.

We have received and expect to receive many more indications of interest as a result of our board's recent adoption of a liquidation plan. We intend to achieve the highest value reasonably attainable for our shareholders in an expeditious manner; however, we must caution that until a prospective purchaser has completed their due diligence and a definitive purchase and sale agreement with respect to one or more of the company's properties has been signed, there is no agreement on value.

Capitalization rate is merely one indicator of real estate value. Each property needs to be evaluated independently based on current and future income, market and submarket dynamics, physical condition and the terms of any indebtedness secured by the property. These capitalization rates and values may not be representative of future capitalization rates and values that may be achieved on the Company's remaining properties under the liquidation plan.

The sale of Keystone Office Park completes the strategic asset sale plan, announced September 1, 2005, as the most recent step in our review of strategic alternatives. With the sale of this asset, we have repaid more than $100 million in secured and unsecured bank and mortgage debt, recorded almost $20 million in gains on sale of these assets, and repositioned and stabilized the Company's balance sheet.