Oakland – March 5, 2009 – AF Evans Co., Inc. announced today that it has filed voluntary Petition for Relief under Chapter 11 of the United States Bankruptcy Code. The goal of the filing is to implement a reorganization of finances to enable the company to return to profitability. AF Evans Co.(AFECo) is filing as a result of falling prices on condominiums recently brought to market.

The move is expected to have no impact on the day-to-day operations of the company's well respected property management subsidiary, Evans Property Management, Inc., and the award-winning senior housing properties in Evans Senior Communities, Inc. AF Evans Development, Inc. will continue to actively pursue selected new residential projects in San Francisco, Oakland, and other core markets.

“We do not anticipate layoffs from this filing,” said Mr. Evans. The company, which employs 550 people across all its entities, has already experienced staff reductions in the AF Evans Development group during 2008 due to the market downturn.

"We remain fully committed to the vision on which the company was founded, to create quality housing for workers, seniors and families, and this reorganization puts us in a better position to weather the downturn without affecting the work being done in our property management and senior housing divisions,” added Mr. Evans. “We have a plan to restore profitability and this filing will enable us to implement it.”

About AF Evans Co., Inc.

AF Evans Co., Inc. is engaged in the development, acquisition and rehabilitation of high-quality housing, serving all income levels. Founded in 1977, AF Evans has developed more than 10,000 housing units across a variety of product types, including low-income, mixed-income, and market-rate housing in for-sale and rental multi-family properties; urban mixed-use projects; and service-enriched living environments for seniors.

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