Centerpoint Condominiums Responds With Press Release

Here is a press release dated August 1st from Avenue Communities regarding Centerpoint Condominiums

All Projects Not Affected Equally
Centerpoint Condominiums in Tempe to Secure New Financing, Settlement Outside of
Mortgages, Ltd. Restructuring

Centerpoint Models to Open Mid-September; Media Invited for Sneak Preview of
Centerpoint’s Models and Penthouses with Developers on August 20


TEMPE, ARIZONA. August 1, 2008. Recent media reports have frequently grouped
together various development projects financed by Mortgages, Ltd., creating the perception that
all have been affected equally. They have not.

Centerpoint’s first tower at 22-stories is nearly complete, and construction work
continues on the 30-story tower. Of the 171 condominium homes in Tower One, 164 are
complete and the remaining seven are penthouses that will be purposely “white shelled” to afford
buyers of these high-end homes the opportunity to hand-select their finishes and design layout.

Lifestyle components continue to flourish on the property as well. In partnership with
Valley celebrity chef, Michael DeMaria, Centerpoint will feature a 180-seat urban Italian
restaurant, Trattoria M, and accompanying Aroma market-caffé. Centerpoint will also launch
another location for PūrVine, Arizona’s first Napa Valley winemaking facility in conjunction
with Signorello Vineyards of the Silverado Trail. Residents’ private “backyard” at the
approximately 23,000 square-foot 7th level Great Room will feature two private theaters, Chef’s
Demonstration Kitchen, white sand beach pool and upscale fitness center among many other
offerings.

This contrasts with other developments financed by Mortgages, Ltd. which have resulted
in lawsuits, halted projects or developments that were never able to break ground as a result of
the company’s recent financial operations.

Furthermore, Centerpoint Principal and Managing Partner, Ken Losch, has notified
Mortgages, Ltd. that Centerpoint’s new financing will not be dependent on Mortgages Ltd.’s
overall corporate restructuring and settlement efforts with other Arizona projects.

“We have several new financing options. We appreciate the cooperation of the new
leadership at Mortgages, Ltd. in this regard. And we are ready to proceed with our new
financing plan that makes sense for all involved. The capital infusion ensures we can bring
current all of the great construction work that has gone into completing Tower One and that will
be necessary to complete Tower Two, which has always been planned to open six months after
Tower One,” Losch said.

Losch said the Tower One residents will begin moving in within 60-90 days from the
close of the new loan agreement; with the Aroma market-caffé, Trattoria M and the trademarked
real.life.style® program, including resident’s “backyard” amenities, scheduled to open for the
holidays.

Centerpoint has more than 200 interested buyers anxious to visit the model home floor
slated to open in mid-September. Some $24 million of new homes have already been purchased.

Losch reports a wide-range of buyers from those looking to downsize to those who prefer
a more urban experience in close proximity to Sky Harbor International Airport to parents
buying condos for their students attending Arizona State University. Combined, Tower One and
Tower Two comprise 375 homes ranging in price from the low $300,000s up to premium pricing
of the penthouse units in the millions.

Recent project tours have impressed attendees, although they may not be for those scared
of heights. The top floors of both towers, notably the highest points in Tempe, embody a 7,104
square-foot luxury penthouse on the entire level. Floor-to-ceiling windows open out to the
penthouse’s private 4,159 square-foot outdoor patio with 33 foot long glass-encased negative
edge swimming pool overlooking panoramic views of the Valley.

Centerpoint is conducting a media tour August 20 at 7:30-9:30 a.m. to offer a behind-
the-scenes preview of Centerpoint as it nears completion. Look into ASU’s Sun Devil Stadium,
down on Sky Harbor Airport, over Mill Avenue, photograph the impressive interior layouts and
see about the coolest personal pool and Jacuzzi you’ll ever see – 350 feet in the air.

Corner Unit with Views facing South