AIC and CAI are affiliated REITs that collectively haveinterests in 33 manufactured home communities with 6,300 developedhome sites and 3,800 sites for expansion. Prior to the merger, AICalso managed and owned 27% of CAI. Seven years ago, CAI was spunoff from AIC, which retained a 27% interest in the spin-offventure. The merger, pending court approval, will result in a newname: American Land Lease Inc., trading on the NYSE as ANL.

Bruce E. Moore, president and COO for AIC and CAI, says themerger makes sense "now that they are in the same business and usethe same personnel. It made sense to combine two small, affiliatedcompanies into a single better-capitalized company."

In connection with the merger, 3.5 million common CAI shareswill be exchanged for $20.4 million in cash and the remaining 4.1million of CAI common shares that are not owned by AIC will beexchanged for 1.7 million AIC common shares.