The Stratford Companies Opens Business Development Office in Indianapolis, Indiana

Receives $750 million Commitments in Institutional Financing for Active Seniors Community Projects

Former Duke Realty President is New Chairman and Equity Investor

(Indianapolis, Indiana, May 15, 2005)—The Stratford Companies, a Midwest leader in developing Continuing Care Retirement Communities (CCRC), has opened a business development office in Indianapolis after making a deal with an institutional investor for $750 million of debt and equity capital for future projects. Also, Richard Horn, former senior executive of Duke Realty Corporation, has made an equity investment in the Company and will serve as Chairman. His primary areas of focus will be investment strategies, capital formation, company growth, site selection and procurement for future seniors projects.

“We are excited about adding Richard’s level of experience and executive leadership,” said Bruce A. Russell, President of The Stratford Companies. “Our business plan is to launch two to three multi-million dollar projects each year and he will be important in guiding us through the process.”

The first funded project is The Stratford at WestClay, located in Carmel’s premiere mixed-use, multigenerational neighborhood, The Village of WestClay. The Stratford at WestClay will be the first new, full-service, active seniors housing campus in Central Indiana in more than two decades.

The $62 million project will be a focal point in the final phase of The Village of WestClay called West Village. The Village of WestClay, a traditional neighborhood development (TND), combines a variety of housing and retail options with the walk ability of a small town or urban center.

The vision behind the project was Wendy S. Horn who has more than 20 years experience developing marketing strategies for senior housing and real estate ventures. “The concept of multi-generational senior housing works perfectly within TND. In fact, it only works within a TND, said Wendy Horn. “We are just happy that George Sweet and Tom Huston had the vision for The Village of WestClay and brought the first TND to Central Indiana.”

According to Retirement Living, CCRCs are growing in popularity with seniors. They are designed for healthy seniors who want to know where and how they will live as they cope with their aging-related circumstances. There are currently 2,240 licensed CCRCs in the U.S. with 598,000 residents.

And unlike their counterparts from the past, seniors today are living more active lifestyles. A report from the American Association of Homes and Services for the Aging (AAHSA) shows seniors are requesting full fitness centers, continuing education, Internet access and opportunities to interact with the non-senior community when scouting out seniors campuses.

• Features of The Stratford at WestClay include:
• 40 Bungalows with one-car garages
  
• 131 Independent Living apartment homes
  
• 45 Assisted Living apartment homes
  
• Future plans for 20 Skilled Nursing suites
  
• Restaurant and cafe-style dining for all residents
  
• Scheduled and personal transportation within The Village of WestClay and throughout Carmel and Metro Indianapolis
  
• Concierge services
  
• High speed Internet access
  
• Continuing education opportunities
  
• Onsite wellness/fitness center
  
• Access and involvement in all Village of WestClay events and social clubs

Sixty individuals have already reserved as Founders’ Club Members and over 250 are on the waiting list. Construction will start in June.

About Richard Horn
Horn also owns Horn Properties, LLC, a developer of mixed-use commercial parks, including the 60-acre Metro Air Business Park in Indianapolis. Previously, Horn was President and senior executive of Duke Realty Corporation, (NYSE:DRE), the largest office and industrial REIT in the U.S.

About Stratford Companies
Stratford Companies is a developer, marketer and operator of senior housing campuses and communities with offices in St. Louis, Denver, Indianapolis and Nashville. The Company and its principals have developed, marketed and operated 17 senior campuses throughout the country valued at more than $1 billion. Currently, The Stratford Companies has projects under development in Denver, St. Louis and Cincinnati with a total investment value in excess of $200 million.