Oakwood Worldwide Announces $1.4 Billion Transaction with Archstone-Smith

Transaction Provides Financial Flexibility for Property Partnerships and

Strengthens Oakwood Worldwide's Position in Corporate Housing Sector

Mar 01, 2005, 00:00 ET from Oakwood Worldwide

    LOS ANGELES, March 1 /PRNewswire/ -- Oakwood Worldwide, the largest global
 provider of corporate housing, announced that property-owning partnerships
 affiliated with Oakwood Worldwide have signed an agreement with
 Archstone-Smith (NYSE:   ASN), one of the nation's largest and most respected
 apartment companies, under which Archstone-Smith will acquire up to
 30 apartment properties for approximately $1.4 billion. The 30 properties
 contributed to Archstone-Smith represent over 10,000 units and are located in
 29 cities across the United States.
     Howard F. Ruby, Chairman of Oakwood Worldwide, said:  "We are very pleased
 to have reached this agreement with Archstone-Smith, which lets the investors
 in the property-owning partnerships achieve the financial flexibility they
 have long desired." He went on to say that the transaction will not involve
 Oakwood Worldwide's Corporate Housing or International businesses.
     Under the terms of the agreement, Oakwood Worldwide will also lease back
 and retain management of 15 of the 30 properties contributed to
 Archstone-Smith, which support its core business of furnished corporate
 housing. These 15 properties, representing 6,097 units, include Oakwood
 Worldwide's flagship properties in Toluca Hills, Marina Del Rey, and San Jose,
 California; Arlington and Falls Church, Virginia; and Seattle, Washington.
 Oakwood Worldwide and Archstone-Smith have also agreed to explore additional
 opportunities to leverage Oakwood Worldwide's expertise in the management of
 corporate housing and furnished apartments.
     "Oakwood Worldwide is the recognized global leader in the corporate and
 furnished apartment business, and we look forward to pursuing mutually
 beneficial opportunities to partner with Archstone-Smith as one of its
 preferred corporate housing providers for our national apartment portfolio,"
 said R. Scot Sellers, Archstone-Smith's Chairman & Chief Executive Officer.
     Mr. Ruby added:  "The transaction also positions Oakwood Worldwide to
 extend its presence in key corporate housing markets. Archstone-Smith's
 apartment communities are in highly attractive markets and I am confident we
 can find opportunities that will enable us to offer a larger range of
 solutions to our corporate clients."
     Upon completion of the transaction, Oakwood Worldwide will continue to
 manage over 20,000 corporate housing and furnished apartment units around the
 world. "Oakwood Worldwide will progressively look for global expansion
 opportunities that will meet the needs of our corporate housing clients while
 strengthening our leadership position as the world's largest global provider
 of corporate housing," said Mr. Ruby.
     The transaction is subject to customary closing requirements and is
 expected to close late in the second quarter of 2005.
     About Oakwood Worldwide
     Founded in 1960 by Howard F. Ruby, Ed Broida, and Bob Franks, Oakwood
 Worldwide (www.oakwood.com), a privately held corporation, is the largest
 global provider of corporate housing and an innovative leader in apartment
 management with locations throughout the United States, the United Kingdom,
 and Asia.

SOURCE Oakwood Worldwide