FOR IMMEDIATE RELEASE

Contact: James Ferrara
516.498.7765
jferrara@chi-development.com

CHI JOINT VENTURES WITH MONTECITO MEDICAL/ING
Exclusive Medical RE Development Deal

August 15, 2007, New York – Montecito Medical, one of the largest privately held American real estate companies specializing in the acquisition and development of medical office and medical specialty buildings in the United States and Canada, and CHI (Central Healthcare Initiatives), an innovator in real estate and operational strategies for healthcare related entities, have announced a joint venture.  Montecito (www.montecitomedical.com; www.montecitoinvestments.com) controls a $1.3 billion private equity fund, underwritten by ING/Clarion, earmarked for healthcare real estate development. The joint venture with CHI (www.chi-development.com) is an exclusive partnership in areas along the US East Coast, leveraging CHI’s experience in regional real estate and economic development to identify and develop projects.

As the medical properties affiliate of Montecito Investment Company and Montecito Property Company, Montecito Medical capitalizes on an exceptional and established network of financial, research and development resources as it moves toward its dedicated goal of acquisition, development and operation of outstanding medical office and medical specialty properties throughout North America.

The Montecito Companies control well over a billion dollars in assets and are acknowledged for industry-leading standards in the acquisition and repositioning of large-scale properties.

Chip Conk, Montecito’s chief executive officer, explained, "CHI offers highly specialized tools and experience that allow us to add value to projects, rather than purchase it. That is a compelling advantage in the highly competitive medical real estate market."

CHI was created to leverage proven operational, financial and real estate strategies to help healthcare institutions enhance the overall effectiveness of their systems, compete successfully in a changing industry, and meet their continuing mission to their communities, employees, patients and physicians.

CHI principals are recognized experts in specialized healthcare design & construction services, healthcare facility and operations analysis, real estate development and management, economic development incentives, tax-exempt financing, zoning & land use, and government relations.

According to Joseph Traina, CHI chairman, "Montecito is the premier source for project opportunities and earmarked funding. They are a natural fit that enable us to expand our unique approach and solutions across the national healthcare landscape."