National Rehab Properties, Inc. Announces Closing on Land Development Loan at Eagle Trace Subdivision, Vero Beach, Florida

Business Wire, May 12, 2000

Business Editors/Real Estate Writers

MIAMI--(BUSINESS WIRE)--May 12, 2000

National Rehab Properties, Inc. (OTCBB:NRPI.OB) announced today that it has closed on the purchase of 20 acres at the corner of Kings Highway (58 Avenue) and Pecan Road (61 Street), Vero Beach, Florida, for the development of a single family gated community, known as "Eagle Trace". National Rehab Properties, Inc. has received plat approval for the subdivision from Indian River County for development and construction.

NRPI closed on the land and placed a development loan on the property with Washington Mutual Bank, F.A., for $1,136,000.

Encore Services, Inc. will be the general contractor in charge of construction and development and is taking bids for land development. Development will include a 2 acre lake in middle of subdivision, construction of roads, sewers, water mains, and infrastructure; guard house, and gate, 6ft. privacy wall surrounding the property.

The land is approximately 2 miles north of Indian River Mall, a DeBartolo Regional Shopping Mall and close to several public and private golf courses. The property is being developed with highly restrictive deed restrictions and covenants limiting houses to 1,500 sq ft minimum size plus 2 car garage. Houses will be sold by builders starting at $150,000 and many will have pools. NRPI is the developer of the subdivision and will sell lots to builders for approximately $40,000 per lot and or will build homes with Encore Services Inc. Construction will be finished in year 2000 and sales are expected to be finished in year 2001.

About National Rehab Properties, Inc.

NRPI, based in Miami, is a fully reporting company. The company's business is real estate development. Other NRPI projects are: a 100 unit condominium project known as Costa del Sol located on West Flagler Street in Miami which will generate $10,000,000 in revenues and a $3,000,000 profit to the company in year 2001; building a 60 unit apartment house in Miami (known as "Granada Grand"), generating $8,500,000 revenues and $2,500,000 net income by 2001; building a 60 unit apartment house in Miami (known as "Conquistador Plaza"), generating $8,500,000 revenues and $2,500,000 net income by 2001. The company is seeking acquisitions and land for real estate developments.

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.