National Residential Properties (fka NRES)

[Joemoney]

National Residential Properties, Inc. Acquires Capitol Guard Corporation

MIAMI--(BUSINESS WIRE)--Oct. 30, 2001--National Residential Properties, Inc. (OTCBB:NRES.OB - news) Formerly (OTCBB:NRPI.OB - news) announced today that it has signed an agreement to acquire Capitol Guard Corporation through a merger into NRES, and Capitol Guard will become a wholly owned subsidiary. The acquisition was made for cash and stock. Closing is scheduled for quarter ending Dec. 31, 2001.

Richard Astrom, President of NRES said: ``We are very excited about this acquisition as it is a good fit for the two companies. NRES will need security for its apartments, condominiums and subdivision. It is good business for both companies, it creates income for NRES and Capitol Guard gets cash reserves with which to grow. Last year's revenues were approximately $300,000 and year 2001 revenues expected to reach $1,000,000.'' Mr. Astrom said: ``After the September 11 tragedy at the World Trade Center and at the Pentagon we as a company have decided to acquire a security company to protect our residential properties and those under construction. We are in Florida where there has been much security anxiety. We now see that security will become a way of life and demand for security will only become stronger.''

Capitol Guard Corporation's clients now include Class A office spaces, Condominiums, Gated Residential communities, Hampton Inns, Comfort Suites, and Remada Inns.

ABOUT THE COMPANY

NRES, based in Miami, is a fully reporting company. NRES has six major projects where the company owns the land and is either under construction or in the plans and permitting process. The company's business is real estate development. NRES projects are: Building a 60 unit luxury apartment house in Miami known as GRANADA GRAND, upon sale the company will generate $7,000,000 revenues and $2,500,000 net income.

At Conquistador Plaza, the 60 unit apartment building the company has under construction at 2270 SW 32 Ave., Miami, the construction of the 4th floor is being finished and preparations being made for the concrete pour of the 5th floor. It is expected that the building will be finished and tenants in the building during the first quarter of 2002.

The company has a project of six sites in Connecticut where the company would develop condominiums for Seniors of over 55 years in Hebron, New Milford, East Windsor, Granby, Watertown and Torrington, all in Connecticut. All the land in all projects, before being developed, has been contracted for sale to another developer wherein NRES will receive a $1,000,000 profit over and above its expenses incurred. The company is preparing for the closing of the transaction which was set for September, 2001 but has been temporarily delayed for a short time due to the World Trade Center Crisis.

Now under construction, the company is developing a subdivision in Vero Beach, Florida, known as Eagle Trace. Eagle Trace is a heavily deed restricted, walled, gated community with a lake in the center. NRES will build houses and sell lots to other builders. The sale of the lots in Eagle Trace will generate $1,500,000 net income in year 2001-2002. Eagle Trace is a 62 unit subdivision that is being developed by the company. 1/3 of the lots are on the lake. NRES is being reimbursed by county for offsite sewers. The company has recently received a commitment from builders for the first six lots.

A 60 unit condominium project known as The Residences At Bay Harbor is located on Bay Harbor Island, which will generate $12,000,000 in revenues and a $2,500,000 profit to the company in year 2002. The building is pre-sold to one buyer before being built, generating $2,500,000 profit to the company.
A 70 unit apartment house in Miami known as Barcelona Apartments, generating upon sale $8,000,000 revenues and $3,000,000 net income in 2002. Encore Services, Inc. is a licensed building contractor, and a wholly owned subsidiary, which is building the company projects through its affiliate Encore Builders Inc. and subcontractors.
The company has authorized a stock repurchase program for up to 10% of the company common stock. The board of directors of the company has authorized a 10% dividend and is awaiting legal opinion as to effective date of the dividend.

Forward-looking statements in this press release are made pursuant to the ``safe harbor'' provisions of the Private Securities Litigation reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, competition, completion problems, technological changes and other risks.

http://biz.yahoo.com/bw/011030/302277_1.html