COOLIDGE, Ariz. (Sept. 13, 2005) - Last night, the Coolidge City Council annexed Pivotal Group's 3,214-acre Sandia community, located in northern Pinal County, and approved the project's planned area development plan, which includes approximately 11,000 homes and more than 550 acres of parks, trails and open space. Sandia is the first master-planned community to be approved in the City of Coolidge.

"We are excited to begin fully developing our vision for Sandia," said Francis Najafi, Pivotal Group CEO. "We have focused on the heritage of the land and region to make certain that Sandia is unique, by virtue of location, master plan and architectural design. The community's bold colors and dynamic Mexican contemporary architecture will set a new standard in the region."

The first phase of the community, which will include approximately 1,200 acres and close to 4,000 homes, could break ground by the end of November and home sales could commence in fourth quarter 2006. Home prices are estimated to range from $150,000 to $350,000. A 35-acre mixed-use town center and community park at the center of the community will combine public, retail and recreational uses around an eight-acre artificial lake.

"Pivotal Group will invest approximately $100 million in the community's infrastructure, which will include electricity, water, sewage, streets, sidewalks, signage, grading, high-speed fiber optic cable, and more," said Karl Polen, Jr., executive vice president of Pivotal Group. "At a future date, we will build a second phase that will incorporate a 2,000-acre active adult community with up to 6,000 homes."

Over a 20-year period, the economic impact of Sandia will exceed $2 billion, according to a study conducted by Scottsdale-based Applied Economics.

"When you factor in the new construction jobs created, the cost of building materials and supplies, and the millions of dollars in salaries, it is estimated the economic benefit to Coolidge will be more than $2 billion," said Phil Zeblisky, general manager of Sandia.

The community's master-planned design clusters elements by usage, which encourages interaction and allows for both public and private uses, such as libraries, retail centers, performing arts venues and community centers. Sites for three K-8 schools will be donated to the Coolidge Unified School District. A 40-acre site will be reserved for a high school.

Pivotal Group purchased the site from Howard Wuertz, a long-time Arizona farmer and owner of Sundance Farms. The crops planted at the farm, located near Highway 87 and Curry Road, include including cotton, wheat, barley and watermelons.

The community was named Sandia, the Spanish word for watermelon, to acknowledge the land's agricultural heritage.

Greey/Pickett Group, based in Scottsdale, Arizona, is the project land planner. Circle West Architecture, also based in Scottsdale, Arizona, is the architect. Phoenix-based Wood Patel is providing civil engineering.

Pivotal Group is an institutionally based diversified investment firm widely recognized for its history in creating high-quality residential, lodging and business environments. It has owned and developed a diverse portfolio including WestWing Mountain, a 1,312-acre master-planned community in Peoria, Ariz., which features a 300-acre preserve; the award-winning 6,500-acre Promontory, The Ranch Club in Park City/Deer Valley, Utah; Anthology, the 3,000-acre master-planned community in metropolitan Denver; 820-acre Cimarron Hills Golf & Country Club in greater Austin, featuring a Jack Nicklaus signature course; Esplanade Place, a luxury residential high-rise in Phoenix; the Century Plaza Hotel & Spa and the St. Regis Hotel in Los Angeles; the Ritz-Carlton Phoenix; Red Mountain Spa in Southern Utah; and 650 California Street in San Francisco's financial district.

For more information about Pivotal Private Equity, visit www.pivotalgroup.com