October 25, 2005 Cape Associates LTD Partnership 7074 Calle Portone Rancho Santa Fe, CA 92091 Dear

Landowner: Please allow me to introduce our company to you. McDaniels Companies is a Development Company with the benefit of national expertise combined with local knowledge. Our Company headquarters are located in Lanham, Maryland and we have more than 10 communities currently open for sales in the Washington D.C. Metropolitan Area. McDaniels Companies is looking for opportunities to purchase and develop high quality communities within the Washington D.C. Metropolitan Area. I work in the land acquisition department focused in the central Maryland area. The Property which you own located on Melwood Road, Upper Marlboro, Maryland has specifically caught my attention. If you or any of your business partners are interested in discussing the sale of the abovementioned property, please feel free to contact me to further discuss this opportunity. I am looking forward to working together and building a lasting relationship for the future. Please refer to the enclosed copy of our Company Brochure for more information about McDaniels Companies. Sincerely yours,

Christopher Williams Land Acquisition Manager McDaniels Companies

9344 Lanham Severn Road Suite 200 - Lanham, MD 20706 - Phone (301) 306-5470 ext. 103 - Fax (301) 306-5427