National Residential Properties (fka NRES)

[Joemoney]

National Residential Properties, Inc.

Press Release Correction
``Stock Received Will be at 50% Discount to Bid Price''
MIAMI--(BUSINESS WIRE)--Oct. 2, 2001--National Residential Properties, Inc. (OTCBB:NRES.OB - news) Formerly (OTCBB:NRPI.OB - news) announced today that it has signed an agreement to sell the GRANADA GRAND project for $3,625,000. The buyer is Vacation Ownership Marketing Inc., (OTCBB:VAOM.OB - news), which is a Bulletin Board company of which Encore Builders Inc is a wholly owned subsidiary. Encore Builders Inc is the contractor for National Residential Properties, Inc. on its Conquistador Plaza Apts project, which is now under construction.

NRES will receive approximately $3,125,000 in common stock of VAOM, with marketprice protection for stock price fluctuations, and ``STOCK RECEIVED WILL BE AT 50% DISCOUNT TO BID PRICE.''

Richard Astrom, President of NRES and a Director of VAOM said: ``We are very excited about this transaction with VAOM, as it is good business for both companies, it creates a large receivable for NRES and a good equity for VAOM.'' The transaction is subject to the existing first mortgage of $525,000 on the property. The projected profit to NRES is $2,500,000. The sale price of $3,250,000 is a value established by the parties and is subject to an independent real estate appraisal which will establish the values for each company and their appropriate audits. NRES and VAOM may be deemed as affiliates due to their interlocking directorates, common shareholders and business relationships. The agreement provides that should the appraisal for the land as a project ``ready to build'', with plans, impact fees paid, etc., be less than $3,250,000, then VAOM will pay NRES any excess over the appraisal price as a participation of profits of NRES in the condominium project. VAOM will obtain a construction loan and build the GRANADA GRAND APARTMENTS as condominiums. The transaction is to close upon receipt of the appraisal, which is estimated to be before November 15, 2001.

About the Company

NRES, based in Miami, is a fully reporting company. NRES has 6 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 3rd floor is being finished and preparations being made for the concrete pour of the 4th floor. It is expected that the building will be finished and tenants in the building before the end of 2001.``

The company has a project of 6 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 it's 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 6 lots.

A 60 unit condominium project known as THE RESIDENCES AT BAY HARBOR, 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 thru it's 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.

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