SOURCE: Equus Resources, Inc.

December 27, 2006 09:00 ET

Equus Resources Announces Plans to Convert to a REIT in 2007

ATLANTA, GA -- (MARKET WIRE) -- December 27, 2006 -- Equus Resources, Inc. (PINKSHEETS: EQUR) (the "Company") announced today that it will begin buying, holding, managing, developing, and selling income-producing properties. The properties will include shopping centers, office buildings, hotels, apartments, and industrial facilities. The Company also plans to expand its mortgage and real estate brokerage operations and to establish a strategic alliance with a new commercial bank opening in Jacksonville in the spring.

The Company believes it will be more conducive to its new plan of operations and will foster the Company's goal of enhanced shareholder value for the Company to become a diversified real estate investment trust ("REIT"). As a REIT, the Company will benefit from only one level of taxation and will be required to pay out at least 90% of its taxable income annually to its shareholders as a dividend.

The Company believes that the market for buying commercial properties at a relatively deep discount to market value is remarkably strong now and will remain so for some time. The Company plans to draw upon its relationships with commercial and investment banking institutions and other real estate lenders to secure favorable property acquisition financing.

The Company believes it can build a diversified real estate portfolio in excess of $100 million in 2007.

In other news, the Company continues with its previously announced plan to spin-off its education division into a separately traded company, which will combine the Company's education and training operations with the Garfield® Early Learning business, as described in prior press releases. Additional information on the progress of the spin-off transaction will be released as it becomes available. The spin-off will enable Equus to focus on real estate and real estate finance operations and the new company to focus on education products and services.

For information on the Company, please visit www.equusresources.com. For information on REITs, please visit www.nareit.org, the Internet site for the National Association of REITs.

Forward-Looking Statements:

Any statements made herein which are not historical facts contain certain "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this release pertains. The actual results of the specific items described in this release, and the Company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgment of management of the Company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties, including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, the receipt of revenues, and other factors, many of which are beyond the Company's control.

Contact Information

  • Contact:
    Randy Harris
    President
    Equus Resources, Inc.
    (888) 421-8326
    (770) 442-2364