ADVANCE REALTY GROUP CLOSES LONG-TERM LEASE WITH INSITECH AT PICATINNY ARSENAL IN MORRIS COUNTY, NEW JERSEY
Developer to Break Ground in Spring on Phase I of 1.1 Million-Square-Foot Research Campus

Bedminster, NJ, Mar 27, 2007 - /FLIERWIRE/-- Advance Realty Group, through its Forge Technology, LLC affiliate, has closed on a 50-year ground lease with InSitech, Inc., a partnership intermediary for the US Army's Picatinny Arsenal/Armament Research, Development, Engineering Center (ARDEC). Plans are underway to break ground in the Spring of 2007 on Phase I of its research campus in Morris County, New Jersey.

Named the Picatinny Applied Research Campus (PARC), Phase I is the development of 100,000 square feet of office/lab space within the boundaries of the base's high security enclosure. Future phases of PARC call for the development of over one million square feet on an additional 120 acres at the United States Army base. Anticipated demand is expected from government contractors at Picatinny and from its main tenant, ADREC, as well as research universities, communications, electronics, nanotech and emerging technology companies worldwide. Tenants would have access to Picatinny's $1.5 billion of high technology equipment, over 64 laboratories, and intellectual assets, some of which only exist at Picatinny Arsenal.

"We believe that this is an exceptional opportunity to provide technology transfer among varied enterprises in a real estate environment specifically designed to meet the unique needs of high technology tenants," stated Gregory N. Senkevitch, COO of Advance Realty Group, a leading Northeast U.S. owner and developer of Class A office properties. "We expect demand to come both from firms that already have a presence at Picatinny, as well as national and international companies and research organizations that want to take advantage of both the technology transfer opportunities and one-of-a-kind technology infrastructure that Picatinny offers."

The overall PARC development plan includes one- to three-story build-to-suit and multi-tenanted buildings with labs, office space and multi-purpose space for high tech, defense and academic tenants and users. The PARC design also includes landscaped open space and pedestrian and bicycle pathways.

PARC tenants will have access to the amenities of Picatinny Arsenal, which include food services, recreational fields and an 18-hole golf course. In addition, Advance's plans for PARC include videoconference capabilities, meeting rooms, an auditorium, and classrooms. These amenities will help spur formal and informal collaboration between employees and government workers, further enabling the exchange of information among various tenants and groups in concert with the concept of technology transfer envisioned by Advance and InSitech.

Timothy N. Teen, president and CEO of InSitech, said, "When completed, the PARC will be a state-of-the-art, high-tech campus like no other in the country, offering significant 'technology infrastructure amenities' in a collaborative manner that will foster innovation. As an outstanding example of a public/private partnership between Advance, InSitech and the United States Army, it will operate as a world-class enhancement to Picatinny's mission."

Picatinny commander Major General Paul Izzo added, "This deal makes use of Picatinny Arsenal's non-excess land to augment our R&D mission through collaboration with the commercial sector. It also creates income for the base, as the arsenal could reap $500 million in services during the 50-year deal and revenue sharing agreement with InSitech and Advance."

The congressional defense committees will notice the benefit of this arrangement. "The military is always working to modernize itself, especially with bases looking to reduce operating and maintenance costs," said U.S. Rep. Rodney Frelinghuysen (R-11th Dist.), a member of the House of Representatives appropriations committee. "This agreement just may become a model for other bases."

About Picatinny Arsenal
Picatinny Arsenal is located on approximately 6,500 acres of land with access from NJ State Highway Route 15, a mile from a full interchange on Interstate 80 in Morris County. Picatinny has a distinguished history in armaments and munitions development and production dating back to the Revolutionary War. Today, the installation employs over 4,000 full-time government and contractor personnel. Over 1,600 of Picatinny's government employees are engineers and/or scientists. Picatinny has approximately $1.2 billion invested in state-of-the-art, cutting edge technological equipment and $115 million in new R&D facility projects in the planning stages or under construction. Many of the technologies support research applications across a broad range of business, industry, government and university endeavors. Picatinny has also become a key player in the Homeland Defense/Homeland Security effort.

About InSitech
Headquartered at the U.S. Army's Picatinny Arsenal in Morris County, New Jersey, InSitech is an integral driver in the Army's transformation strategy, and Picatinny's base optimization plan. Representing the business interests of Picatinny/ARDEC as their partnership intermediary, InSitech is focused on accelerating technology exchange, licensing and commercialization opportunities, through business combination with the Government, University and Private Sectors.

About Advance Realty Group
Advance Realty Group is an owner and developer of office, flex, industrial, retail and multifamily properties. With 5.5 million square feet of operating properties and a development portfolio consisting of eight million square feet of commercial projects and 9,400 residential units, Advance is one of the leading real estate owners in the Northeast and is headquartered in Bedminster, New Jersey. For leasing information on Picatinny Applied Research Campus, contact Brian Banaszynski, vice president, Advance Realty Group at (908) 719-3000 or visit www.advancerealtygroup.com.