DENVER--(BUSINESS WIRE)--March 18, 2004--Affordable Residential Communities Inc. (NYSE: ARC) today announced that the underwriters in its initial public offering have exercised their option to purchase 791,592 additional shares of common stock out of a total over-allotment option of 3.69 million shares. The net proceeds to ARC from the sale of these additional shares, after deducting estimated offering expenses, will be approximately $14.0 million.

The over-allotment option on the Company's Series A Cumulative Redeemable Preferred Stock was not exercised.

Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith served as joint-book running managers of the common stock offering. Copies of the prospectus relating to the offering may be obtained by contacting Citigroup Global Markets Inc., Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 5th Floor, Brooklyn, NY 11220 or Merrill Lynch & Co, 4 World Financial Center, New York, NY 10080.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Affordable Residential Communities Inc. currently owns and operates approximately 67,000 homesites located in 298 communities in 29 states. ARC is a fully integrated, self-administered, self-managed equity real estate investment trust (REIT) focused on the acquisition, renovation, repositioning and operation of primarily all-age manufactured home communities with headquarters in Denver, CO.

The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, general risks affecting the real estate industry; the Company's ability to maintain or increase rental rates and occupancy with respect to properties currently owned; the Company's assumptions on rental home and home sales and financing activity; completion of pending acquisitions, if any, and timing with respect thereto; the Company's growth and expansion into new markets or to integrate acquisitions successfully; the effect of interest rates as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any intention or obligation to provide public updates, revisions or amendments to any forward-looking statements that become untrue because of subsequent events.

    CONTACT: Affordable Residential Communities Inc.
             Haynes Chidsey, 303-383-7503

    SOURCE: Affordable Residential Communities Inc.