CRI-I Recommends That Limited Partners Reject Tender Offer by Peachtree Partners

ROCKVILLE, Md., Oct. 6 /PRNewswire/ -- C.R.I., Inc. ("CRI"), as Managing General Partner of CRI-I, advises Limited Partners of CRI-I to reject the tender offer of $165 per unit, less certain reductions to that purchase price (including "transfer fees" of $150 per selling investor), made by Peachtree Partners, because CRI views the offer price as inadequate. CRI's recommendation relates to a "mini" tender offer initiated by Peachtree Partners on September 24, 2008 for up to 4.9% of the outstanding units of Limited Partner Interest in CRI-I, including those already owned by the offeror and its affiliates, or approximately one thousand two hundred thirteen (1,213) units. Peachtree Partners is not affiliated with CRI-I or CRI.

As of September 30, 2008, CRI-I held $7,416,005 in cash and cash equivalents. Dividing the cash among the 24,747 outstanding units of Limited Partner interest in CRI-I results in a current cash value of approximately $300 per unit, more than eighty percent (80%) greater than the Peachtree Partners' tender offer price. In addition, CRI believes there is equity in CRI-I's remaining portfolio of interests in six partnerships that each own an apartment property. While CRI-I expects that it will incur additional expenses in connection with the management of its assets, and while there can be no assurances as to when and whether future dispositions of its remaining funds will occur or what additional net proceeds, if any, will be available for distribution to unit holders, CRI-I currently expects that it will make additional cash distributions to its unit holders that will exceed the price offered by Peachtree Partners. In sum, CRI-I is of the view that unit holders will more likely realize superior economic results by retaining their units than by selling them in response to the Peachtree Partners offer. However, each unit holder may wish to consult with his, her or its individual tax advisor about the tax consequences of selling or retaining his, her or its units.

If a Limited Partner desires to liquidate his or her investment in the short term, there is no established market for the purchase and sale of Limited Partner units in CRI-I. Although several secondary market services exist, activity has been limited and sporadic. The most recent transfers of which CRI-I is aware were for prices lower than the current tender offer by Peachtree Partners.

CRI further notes that the $150 per selling investor "transfer fee" is being charged and received by Peachtree Partners and not by CRI-I itself. CRI-I imposes only a $100 fee for its processing of transfer requests, which amount presumably will be paid by Peachtree Partners from the fees it charges.

CRI is a real estate investment firm based in Rockville, Maryland. Its portfolio includes over 190 multi-family apartment complexes located throughout the United States. CRI-I is a District of Columbia limited partnership.

Forward Looking Statement:

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. CRI-I undertakes no obligation to update publicly any forward-looking statement contained herein to reflect any change in CRI's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect CRI-I's business, particularly those mentioned in the CRI-I's Form 10-K for the year ended December 31, 2007, and its periodic reports on Form 10-Q and Form 8-K, which CRI-I incorporates by reference.