COLORADO DEVELOPER MAKES LONE STAR STATE DEBUT; SELECTS GREATER HOUSTON MARKET AS NEW TEXAS HOME

Developer focusing on four projects in Galveston County

HOUSTON - With a desire to take advantage of the significant growth opportunities taking place in the Lone Star State, Deerwood Development Group, Inc. recently expanded into the Texas market with four residential and commercial real estate projects in Galveston County.  The Colorado-based land development firm will open an office in Bay Area Houston in late July 2005.

"I have always enjoyed Texas and the 'can-do' attitude of its residents," said Darell Schmidt, president of Deerwood Development Group, Inc.  "I wanted to diversify my investments and immediately considered Texas as a viable investment opportunity."

Galveston County specifically stood out to Schmidt as a place destined for significant growth, with its close proximity to water sports, transportation corridors and major employment centers.  As a result, he has launched the following projects:

. Lone Trail Village - This residential development in Texas City is well underway with all lots recently sold to Gehan Homes, a prominent Texas home builder.  Located near Interstate 45 and Century Boulevard, development will begin in May and the first homes could be finished by the end of the year. When complete, Lone Trail Village will contain 225 homes and amenities including picnic areas, sand volleyball court and hiking trails.

. RiverBend on Clear Creek - RiverBend on Clear Creek will be a new $80-million mixed-use development that sits on 67 acres in League City off of I-45 at FM 518.  It will provide sites for four restaurants; two 100-room hotels; a marina; retail sites; more than 10 office pads that could accommodate residential lofts above the office space and a 12-acre site for residential development.  The conceptual plan also includes an
interconnected network of parks with a trail system that is designed to maximize the waterfront views.  Deerwood estimates a ground breaking will occur in late 2005. 

. Quail Point - Quail Point will be a 750-lot residential community situated on 200 acres of land northwest of FM 646 at State Highway 146 in League City.  Lots will be sold to an area developer.  Residents will enjoy numerous amenities, including a recreation facility with a swimming pool, playground, sand volleyball court, hiking trails and picnic areas.  Deerwood estimates a ground breaking on Quail Point by third quarter 2005.  Home
construction would begin in first quarter 2006, with tentative home deliveries in second quarter 2006.

. Buttermilk Trail - Buttermilk Trail will be another residential community located in La Marque, Texas near the intersection of Delaney Road and FM 1765.  Comprising 80 acres, it will offer more than 300 detached, single-family homes.  Lots will be sold to an area developer.  While this project is still in the predevelopment stage, plans are to include the following amenities:  park with playground, picnic pavilion and walking trail system.  The ground breaking is tentatively being planned for first quarter 2006, with tentative lot deliveries in second quarter 2006 and home deliveries by the summer of 2006.

"My developments are designed with care and attention to detail in order to meet the needs of the growth corridors in Texas City, League City and La Marque," said Schmidt.   "I strive to ensure they are developed in such a manner to support the communities now, as well as to help meet the cities' vision of the future."

For all of the residential developments, Deerwood will exclusively handle the land and infrastructure development, including streets and utilities. Contractors will be selected to oversee the actual physical construction of the projects.

Deerwood is working with a strong team of local consultants, including GeoSurv for surveying, Knudson & Associates for land planning, Dannenbaum for all civil engineering services, Ashby Crinion L.L.P. for legal counsel and Griffin Integrated Marketing for public relations, advertising and marketing. 

Beyond the current projects, Schmidt says he will continue to evaluate other
opportunities in the Greater Houston market and select choice sites that fulfill a strong need in the commercial and residential marketplace.

With its corporate headquarters in Englewood, Colo., Deerwood Development Group, Inc. is a land development company specializing in residential and commercial projects in Colorado and Texas.  Since 1982, Deerwood principals have built more than 2,700 homes, developed 1,600 lots, five shopping centers and two office buildings.  The company strives to create residential communities in growing cities, with transportation corridors, shopping, schools and employment centers in close proximity.  Commercial developments
are designed to foster lifestyles for businesses in top locations with accessibility to major transportation corridors.  For more information, visit www.deerwoodland.com.