Hilton Head Properties, Inc. Names 'Chase' D. Fonteno, an Advocate for Affordable Housing, as President and CEO

DALLAS--()--May 6, 2005--Hilton Head Properties, Inc., a Dallas, Texas-based Real Estate Investment company, announced this morning the appointment of 'Chase' D. Fonteno as President and CEO. Mr. Fonteno has over 25 years experience in real estate investment and management, including an extensive background in multi-family project financing, re-development, renovation, affordable housing initiatives and strategic planning.

"I have to admit, Chase has led the charge since the company's start. He has been a leader in our development, strategic planning, the management & partner training and expansion. He has been the key to our stellar growth in such a short time frame," stated Nate Volk, former President and current Chairman. "Our Board recognized the best candidate for the job was right in front of us, and if we did not grab him, someone else would -- and that would create a competitor we would not want to face."

"Mr. Fonteno's experience in and knowledge of single and multi-family properties, as well as the public securities market and the innate problems of affordable housing is quite extensive and has been very relevant to our past extraordinary growth and our future plans," added Joe Hockaday, Chief Financial Officer. "While Mr. Fonteno has always proven to promote new ideas and the talents of others, he has also demonstrated himself to be a strong leader for which the partners and entire staff have immense respect."

"I am excited about being asked to lead a company I care about and see immense growth in. Hilton Head's unique plan of real estate acquisitions is an innovative concept in a very old business," stated Mr. Fonteno. "The company already has considerable talent onboard, and I am eager to accept the opportunity of guiding the company into the future."

Mr. Fonteno is a native of Houston, Texas, and the son of Commissioner Jim Fonteno, former County Commissioner of Harris County. Mr. Fonteno, a formerly successful stock broker with Merrill Lynch, has been the founder and/or a key executive of a number of companies, predominately based in real estate, but also oil & gas and an internet company. Mr. Fonteno, who has over 18 years involvement with the Boy Scouts of America, is also involved with various charities in the Dallas and Houston area, and is Exec. Vice President of the Phoenix Foundation.

Company Information

Hilton Head Properties Inc. is a privately held multi-disciplined real estate investment firm specializing in the acquisition and owner-financed sale of single family residential housing and long-term investment in multifamily projects nationwide. Hilton Head makes home ownership available to buyers without using any governmental programs or assistance, by helping individuals purchase sub-par homes with little cash down, where the buyers are required to do their own home repairs. Currently Hilton Head has offices in Houston and Dallas, Texas and has announced plans to expand into 25 additional cities this year, including Ft Worth, San Antonio, El Paso, Denver, Detroit, Chicago, Tulsa, Oklahoma City and Atlanta over the next 4 months.

The statements made in this press release that are not historical fact are "forward-looking" statements which are based on current expectations that include a number of risks and uncertainties. This release is not made for the purpose of promoting any investment. Forward-looking statements in this news release, if any, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and are not meant for any solicitation.

Contacts

Hilton Head Properties, Inc.
Bob Young, 214-515-9685
BYoung@HiltonHeadProperties.net
www.hiltonheadproperties.net

Contacts

Hilton Head Properties, Inc.
Bob Young, 214-515-9685
BYoung@HiltonHeadProperties.net
www.hiltonheadproperties.net