``Changing of the Guard'' Ceremony Conducted between Lennar, LNR, City of Irvine, and the U.S. Department of the Navy

Business Wire, August 30, 2005

ALISO VIEJO, Calif. -- In a special ceremony attended by high ranking members of the U.S. Department of the Navy, state and local leaders as well as representatives of Lennar and LNR Property Corporation, the former El Toro Marine Corps Air Station in Irvine, California officially transitioned into the site for The Great Park Community on Monday, August 29, 2005.

The afternoon event, hosted by Heritage Fields LLC, a joint venture among Lennar Homes of California, Inc., LNR Property Corporation, and real estate investment funds sponsored by Rockpoint Group, L.L.C., Blackacre Institutional Capital Management, LLC and MSD Capital, L.P., marked the official "changing of the guard" between the U.S. Department of the Navy, the U.S. Marine Corps, the City of Irvine, and the Lennar/LNR partnership for the 3,724-acre former military base. Under current plans, the future Great Park Community is envisioned to encompass a blend of new residential neighborhoods and complementary uses such as retail, golf, R&D, schools and a learning village, as well as 1,375 acres of public land including the creation of the Orange County Great Park.

"Yesterday's symbolic transition helps us honor the land's proud past while also celebrating its bright future," said Emile Haddad, president of Lennar's California region, one of the nation's largest homebuilding and community development companies. "We thank the Department of the Navy as well as the men and women of the U.S. Marine Corps for establishing and maintaining this base as a local landmark and cherished symbol of our freedom. We also thank the City of Irvine and people of Orange County for creating the vision for The Great Park Community. As the new stewards of this vision, we are looking forward to working with the City of Irvine, the Great Park Corporation, and the community leadership to create a new landmark on this land -- for the benefit of today's and future generations."

On February 17, 2005, Heritage Fields LLC placed the final combined winning bid of approximately $650 million for all four parcels of the former military base during an on-line auction conducted by the United States Department of the Navy. Proceeds from the sale of the property will be used by the Navy to complete its environmental clean-up of El Toro as well as other military bases. On July 12, 2005, the City of Irvine hosted a special Close of Escrow and Development Agreement Signing Ceremony during which Lennar's Executive Vice President Robert Santos presented Irvine Mayor Beth Krom and the members of the Irvine City Council with a check for $33.3 million, the first installment of $200 million in development fees, payable over the next two years.

Yesterday afternoon's event was attended by approximately 125 people who gathered together in a large tent situated along a section of the northeast runway at the former base. As guests arrived, they were invited into a gallery of photographs depicting the base history from The Legacy Project, a non-profit documentary project chronicling the history and future of The Great Park through photographs, videos and oral histories. Additional display stations featured art and information about the Orange County Great Park and the community planning process now underway. Also provided were initial concepts of the Great Park Community presented by Lennar and LNR.

During the event, several speakers were invited to share their observations about the base and its significance to the people of Orange County. In addition to comments provided by Lennar's Haddad and Santos, special presentations were made by Under Secretary of the Navy Dionel M. Aviles, Irvine Mayor Beth Krom, and Chairman of the Great Park Corporation Larry Agran. Highlights of the ceremony included the final presentation of the colors at the former base by the U.S. Marine Corps Color Guard, the singing of the National Anthem by the California Promise Barbershop Quartet, and the presentation of The Legacy Project photographic books to honored guests.

"This is yet another milestone in the legacy of this land," said Dana Sanders, chief operating officer of LNR Commercial Property Group. "As the master developer of the Great Park Community, Lennar and our team will work in unison with the City of Irvine, the Great Park Corporation, and all community stakeholders to transform the vision of this former military base into reality."

Lennar is one of the nation's leading builders of new communities and homes. Lennar, listed on the New York Stock Exchange, is one of the largest public community development and homebuilding entities in the United States and one of the largest homebuilders in California. The western headquarters of Lennar is situated in Aliso Viejo, California.

LNR has been engaged in the development, ownership and management of commercial land, office, industrial, retail and multi-family properties nationwide since 1969. Through October 1997, LNR operated as the commercial development and investment division of Lennar Corporation (NYSE:LEN), one of the largest homebuilders in the United States. In 1997, LNR spun off from Lennar Corporation to become a separate public company (NYSE:LNR) focused on commercial real estate investment and development. In 2005, LNR was acquired by LNR Property Holdings Ltd., which is owned by Cerberus Capital Management, L.P.; its real estate affiliate Blackacre Capital Management, LLC; Stuart Miller, the former Chairman of the Board of LNR; and senior members of LNR's management team. Although LNR is a distinct company from Lennar Corporation, both entities continue to work together and complement each other's interests in mixed-use communities.