WNY Group, Inc.

FOR IMMEDIATE RELEASE

Freehold, NJ (July 19, 2000) -- WNY Group, Inc., a privately held real estate investment trust (REIT) specializing in apartment communities located in Delaware, Baltimore, Maryland, eastern Pennsylvania and in the New Jersey markets announced the acquisition of The Brook at Colonial Park located in Harrisburg, Dauphin County, Pennsylvania. "The acquisition of The Brook at Colonial Park furthers WNY’s penetration in the Harrisburg market, the western perimeter of our operating region", stated Peter J. Weidhorn, President/CEO of WNY. WNY owns and operates 1,482 apartments in the Harrisburg/Lancaster market. This market represents 19% of the WNY portfolio and the Company intends to seek other opportunities in the region.

The Brook at Colonial Park was acquired for $20.2 million. The acquisition was funded in its entirety by utilizing the Company’s acquisition credit facility. Mr. Weidhorn estimates that with closing costs and short-term capital expenditures, the total acquisition cost will be $20.9 million.

The transaction was initiated by Mr. John McFadden and Mr. Robert Miller of Coldwell Banker, Philadelphia and Mr. William Roohan, Coldwell Banker, Baltimore.

WNY Group, Inc. was formed as an equity real estate investment trust on January 29, 1998 through a consolidation of the WNY Management Corp’s affiliated properties and the completion of a private placement of $30,000,000 of Preferred Class "A" equity capital with investors affiliated with or advised by Morgan Stanley Special Situations Fund. On April 13, 1999, a second private placement of $30,000,000 of Preferred Class "B" equity capital was completed with Five Arrows Realty Securities II, L.L.C., an investment pool advised by Rothschild Realty, Inc. and investors affiliated with, or advised by an affiliate of Morgan Stanley Real Estate Special Situations Fund.

WNY Group, Inc. owns 7,761 units located throughout New Jersey, Pennsylvania, Delaware and Maryland and has an operating lease with a purchase option on 332 apartment units in New Jersey. WNY has a professional workforce of over 275 experienced on-site operating staff members and regional administrative teams. The Company maintains a central management office based in Freehold, NJ.