The REIT also announced it has promoted Rees Davis, chief operating office, to president. In addition, the board of directors named Jim Hankins as vice chairman of the board.

"We are very pleased to announce the promotion of Rees Davis from COO to president," says John Boll, chairman of the board. "We are confident our new leadership team will build a strong organization and continue to provide great service to our residents. On behalf of the board, we thank Gary for his many years of visionary leadership. We wish him well in his future endeavors."

Chateau has also announced a number of other changes to occur by the end of 2002 aimed at consolidating the organizational structure at all levels. As of Jan. 1, specific corporate and operational functions will be consolidated or eliminated. This will affect several regional and divisional offices including Denver, Detroit and other offices. There will be a one-time charge in the fourth quarter in the range of $1.5 to $2 million. The company expects that these measures will lead to annual cost savings of approximately $3 million.

"Our first responsibility is to our residents, associates and our shareholders," says Davis. "It is critical, as we navigate through the significant challenges in our industry, that we operate our business in a manner that serves them well. The new leadership team will continue to focus on improving property operations, strengthening our balance sheet and repositioning our portfolio, all positive steps on the road to rebuilding growth in profitability."

Chateau Communities' portfolio consists of 205 communities, with an aggregate of approximately 68,500 residential homesites and 1,400 park model/RV sites. In addition Chateau manages 37 managed communities with approximately 8,100 sites. The company owns 12 greenfield development communities with approximately 6,100 sites when fully developed. Chateau Communities operates in 36 states.