February 26, 2008

Cascadia Forms Joint Venture With Sumitomo Forestry

In its first major investment in a North American planned community, Sumitomo Forestry Seattle Inc. has joined forces with Cascadia to develop the community's first resort, including an 18-hole golf course and surrounding residential lots.

The 300-plus-year-old global organization headquartered in Japan has formed a joint venture with Cascadia to develop approximately 520 acres of the 5,000-acre East Pierce County site over the next five years. Financial terms were not disclosed.

"We are pleased to join forces with Patrick Kuo and the Cascadia team to develop this beautiful site using sustainable forestry and building practices, and conservation principles," said Ryu Yano, president of Sumitomo Forestry Co. Ltd. of Japan. "We look forward to contributing to Washington's largest planned community and bringing our sustainable solutions and technologies to the Pacific Northwest and beyond."

According to Patrick Kuo, Cascadia president and chief executive officer, one of the community's core pillars is its commitment to the environment and healthy lifestyles, allowing residents to enjoy nature and protect it. He said this principle aligns with Sumitomo's philosophy of using timber and its products with care as a renewable, healthy and environmentally friendly natural resource.

"We are honored to have a great company like Sumitomo working with the Cascadia team to develop a premier, sustainable resort community," Kuo said. "This is the first step in what we hope will be a long-term partnership that brings together the best practices of East meets West, both to the Pacific Northwest and the rest of the world."

The joint venture, called Cascadia Resort Communities LLC, will be led by Kuo, with Masanobu Nishikawa, general manager of Sumitomo Forestry Seattle Inc. serving as the Sumitomo principal. "We are excited about working with the Cascadia team to implement the best sustainable solutions, including the use of materials, landscaping and nursery techniques, in developing this world-class community," Nishikawa said.

Once the residential lots are developed, Kuo said they will be sold to home builders for moderate to estate properties as well as active-adult residences. Cascadia already has announced sales of more than 400 lots to Centex Homes, Shea Homes and Bennett Homes. Bennett Homes also is working with Sumitomo Forestry Seattle on certain homes at Cascadia.

John Harbottle, one of the most sought-after golf course architects in the Western United States, will design Cascadia's first course. Harbottle has created some of the nation's top facilities, including the Olympic Course at Gold Mountain, Bremerton, Wash., site of the 2006 U.S. Amateur Public Links Championship. He is also the architect who renovated two of America's top 20 golf courses located at the legendary Los Angeles Golf and Country Club in California. The 18-hole Cascadia course will be located to the east of the community's entrance and will include a first-class clubhouse and state-of-the-art golf instruction facility. These facilities will complement a world-class resort and conference center to be developed shortly after the completion of the golf complex.

About Sumitomo Forestry

Sumitomo Forestry Co., founded in 1691, is one of the largest forest management companies in Japan, managing approximately 100,000 acres of Japan's forestland. The company utilizes timber as a renewable, healthy and environmentally friendly natural resource, and contributes to a prosperous society through all types of housing-related services. It engages in forest management and sales of forest products and building materials. In addition, Sumitomo Forestry also is involved in the homebuilding business and builds mainly custom, single-family homes in Japan, delivering approximately 9,500 units in its last fiscal year. Sumitomo Forestry is an international organization that constantly stays a step ahead in dealing with change, creating new value and contributing broadly to global society. Over the course of its more than 300-year history and through its diversified businesses, Sumitomo Forestry serves its prime mission of achieving long-term prosperity and realizing dreams through sound business activities throughout the world. Sumitomo Forestry Seattle, a 100-percent-owned subsidiary of Sumitomo Forestry, engages in distribution and sales of forest products and in homebuilding in the United States.

About Cascadia

With its grand opening this summer, Washington's largest planned community has been inspired by the world's greatest communities and is dedicated to helping people enrich their lives through an innovative and diverse balance of residential, commercial, cultural, educational and recreational opportunities. Located at the base of Mount Rainier, Cascadia is just 12 miles southeast of Tacoma and 18 miles from Seattle-Tacoma International Airport. The new 5,000-acre community will have 6,500 home sites, a business and industrial park, a resort-quality hotel and conference center, three 18-hole golf courses, an equestrian facility, a town center with retail stores and restaurants, seven schools, and some 1,280 acres of parks and open space. Over the course of its 20-year build out, Cascadia will create an estimated 10,000 jobs. To learn more about Cascadia and the art of living, please visit www.livecascadia.com.