ANL Amer Land Lease

American Land Lease, Inc. (NYSE:ANL) (NYSE:ANL-PA) announces the 2006 dividend allocations for federal income tax purposes for its Common Stock and publicly traded Preferred Stock. American Land Lease�s tax return for the year ended December 31, 2006 has not yet been filed. As a result, the income tax allocations for the dividends discussed below have been calculated using the best information available at the time of this release. Please note that federal tax laws affect taxpayers differently, and the information in this release is not intended as advice to shareholders on how dividends should be reported on their tax returns. Also note that state and local taxation of real estate trust (REIT) dividends varies and may not be the same as the taxation under the federal rules. ANL encourages shareholders to consult with their own tax advisors with respect to the federal, state, and local income tax effects of these dividends. Common Stock � Record Payable Dividend Ordinary Unrecaptured Return CUSIP Date Date Per Share Dividend Section 1250 of Capital � 027118108� 2/16/06� 2/28/06� $0.25� 0.0% 5.0% 95.0% 027118108� 5/15/06� 5/31/06� $0.25� 0.0% 5.0% 95.0% 027118108� 8/15/06� 8/31/06� $0.25� 0.0% 5.0% 95.0% 027118108� 11/16/06� 11/30/06� $0.25� 0.0% 5.0% 95.0% � $1.00� 0.0% 5.0% 95.0% As previously announced on March 1, 2002, the Company increased its tax basis in its real estate assets in 2001. At that time, the Company projected that a greater percentage of future dividends paid, if any, would be characterized as a return of capital to its shareholders when compared to the percentage that would have been characterized as return of capital if the Company did not utilize the ability to increase its tax basis. Without the increase in its tax basis in 2001, the return of capital for 2006 would have been approximately 63.6% as compared to the 95.0% actually reported and applicable for the year. Series A Cumulative Redeemable Preferred Stock � Record Payable Dividend Ordinary Section 1245 Return CUSIP Date Date Per Share Dividend Ordinary Recapture Of Capital 027118207� 2/16/06� 2/28/06� $0.4844� 75.1% 24.9% 0.0% 027118207� 5/15/06� 5/31/06� $0.4844� 75.1% 24.9% 0.0% 027118207� 8/15/06� 8/31/06� $0.4844� 75.1% 24.9% 0.0% 027118207� 11/16/06� 11/30/06� $0.4844� 75.1% 24.9% 0.0% � $1.9376� 75.1% 24.9% 0.0% American Land Lease, Inc. is a Clearwater-based real estate investment trust (REIT) that owns, develops and manages residential land lease communities.