REAL ESTATE FUNDS

Aetos Capital Asia Funds I and II ("ACA I" and "ACA II")

ACA I had its final close in November 2003 with $740 million in equity commitments from a wide variety of public and corporate pension sponsors, university endowments, foundations and private investors. Through the first quarter of 2007, ACA I has a total asset base of over $3.5 billion.

ACA II had its final closing in November 2005 with $2.2 billion in equity commitments which may be leveraged to acquire up to $10 billion of assets. Through the first quarter of 2007, ACA II has acquired $1.6 billion of real estate assets.

The ACA funds' strategies were designed to capitalize on investment opportunities in Asia. ACA II is currently focused on buying real estate, whether directly or through corporate acquisitions, with an investment focus on core real estate sectors including office, residential, industrial, retail, hotels and well-located land.

A Focus on Complex Situations

Aetos Capital's principals have extensive experience not only in property investment, but also in real estate investment banking, restructuring and merger and acquisition transactions. As an independent fund with a sophisticated approach, ACA is well positioned to handle large and complicated real estate investment opportunities which can generate exceptional returns.

Flexible Investment Mandate

With significant capital and a flexible investment mandate, ACA has the capacity to invest in a wide variety of property situations including merger and acquisition transactions, corporate restructurings and divestitures, hard asset acquisitions, corporate bankruptcies, and sub-performing and non-performing loan acquisitions. This flexible mandate affords us the ability to meet the objectives of sellers and execute a larger number of attractive transactions.

Disciplined Underwriting Methodology

ACA employs a disciplined approach to underwriting investments, utilizing a rigorous due diligence process with respect to each investment, conservatively projecting future cash flow proceeds and analyzing possible downside scenarios before making any investment or pricing decisions.

Use of Leverage

ACA prudently manages the capital structure of its investments, maximizing the benefits of leverage. As an independent firm, we have a wide variety of relationships in the commercial and investment banking communities which enable us to negotiate attractive terms for the debt on our investments.

A Focus on Value Creation

In evaluating investments, Aetos Capital carefully assesses the ability to add value through active asset management provided by our affiliated real estate operating company, Aetos Japan, LLC. Aetos Japan's value-added strategies include: utilizing capital to reposition assets in the market; employing aggressive leasing strategies; optimizing performance by reducing expenses; and restructuring and refocusing real estate companies to increase returns on investments.

Exit Strategy and Dispositions

Clearly defined exit strategies are an essential component of underwritten business plans. In order to optimize our returns, investments are generally sold when their values have been maximized; with an eye towards maximizing cash multiples, as well as internal rates of return. Aetos Capital believes that this strategy both increases investment returns and decreases risk.

Portfolios

ACA I

As of March 31, 2007, the ongoing portfolio included seven investments with a purchase price of approximately $1.4 billion. We have also been active with dispositions, which through the end of the first quarter of 2007 exceeded $2.5 billion.

March 2007

ACA II

As of March 31, 2007, the ongoing portfolio included 13 separate investments with a purchase price of approximately $1.5 billion.

March 2007

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