DNA Designer
now supports the design and simulation of "Autonomous Dynamic
Reconfiguration," a feature allowing the hardware to autonomously
switch DNA Configurations.7 million, or $0.8 million .6 million as
compared to $4.48 during 2004.1 million generated in 2004.5 million, a 47% increase .2 million during 2005. This results in a net loss to
our class A shares of $427,000. We anticipate this business to
generate total 2006 operating revenues of $33.8 million in property expenses, $6 .8 million in interest expense and $3. The dial-in number for the call is 1-877-407-8031. Our mission is to establish a real
estate business that can realize growth in income in any market cycle - a
company with strong earnings power from multiple sources.90 $44.

orbits squares

Koichi Hagishima, CEO of IPFlex, states, "We are extremely pleased to have
surpassed the original sales target, and have sold over 100 licenses in ten
short months. This is due to the strong support shown by our customers for
our technology and products, and we thank those customers for their support.
We will continue to pursue our goal of achieving full automation of the design
starting with C code, and will work hard to develop tools that are even easier
to use. It provides compiler for algorithms written in C with
data flow extension, and also MATLAB/Simulink is supported.50 per class A
common share during 2005, which were paid out on a monthly basis, as
compared to dividends declared of $0.
"We have and will continue to focus on creating value for our shareholders
by growing our Net Asset Value (NAV) on a per share basis, while at the same
time growing our FFO on a per share basis," said Chad C. The remaining 22% comes primarily
from single tenant, parent company guaranteed leased properties. Anticipated FFO per share for 2006 from this segment is
budgeted at $0.4%.32 $(0.27 $(0. The Company
considers FFO to be an appropriate supplemental measure of operating
performance because, by excluding gains or losses on dispositions and
excluding depreciation, FFO is a helpful tool that can assist in the
comparison of the operating performance of a company 's real estate between
periods, or as compared to different companies.

multiplying increment

DAPDNA-FW II is a design tool for IPFlex's DAPDNA-2* Dynamically
Reconfigurable Processor**. This allows DFC source code
to be targeted at hardware level and debugged.15 a share, or approximately 17% of total 2006
budgeted FFO. This business is transactional and the timing of these
contributions from quarter to quarter is hard to predict. For 2006 we have budgeted fee income
from this segment to be $8.1 million in general
and administrative expense. Revenues are further reduced by the allocation of
dividends on our non-traded shares on a pro-rata basis based on net income
contribution of the segment ($6.62)

Share Data:
Weighted average class A common
shares used to compute net income
per share, basic and diluted 6,446,377 3,431,394 5,204,914 3,251,285

Market Capitalization Table:

Common Shares Outstanding (12/31/05) Number of Shares Price Market Equity
Class A, net of treasury shares 6,401,537 $6.17M
Class B 2,148,649 $6.54M

Balance Sheet Highlights
(in thousands)
(Unaudited)
December 31, December 31,
2005 2004
Real estate held for investment, net $241,301 $157,031
Net investment in direct financing leases 19,212 19,219
Intangible lease cost, net 17,761 10,628
Real estate held for resale, net 3,569 6,326
Investment in merchant development funds
and other affiliates 2,311 1,979
Total assets 314,971 203,151
Notes payable 114,687 105,964
Total liabilities 126,510 113,666
Minority interest 1,176 1,115
Total shareholders' equity 187,285 88,370

Non-GAAP Financial Disclosure

This press release contains certain non-GAAP financial measures that
management believes are useful in evaluating an equity REIT's performance.com)
AmREIT, (713) 850-1400

durer hypercubes

com/. Other corporate and product names are the trademarks or
registered trademarks of their respective owners.

AmREIT Reports Strong 2005 Year End and Fourth Quarter Results; FFO Per Share Grew 9% for the Year

9 million for 2004 or a loss of $1.08 per share for the year, representing approximately 27% of total FFO per
share for 2005.2
million of general and administrative expense.03 a share, or approximately 2% of total 2006 FFO.68 per share for the year, representing approximately 81% of total FFO per
share for 2005.56 to $0.

The company has published additional forward-looking statements in its
fourth quarter and year end 2005 supplemental information package that may
help investors estimate earnings for 2006. This mission has led
us into three distinct businesses. And third, we own a portfolio of "Irreplaceable
Corners(TM)" -- premier retail properties in high-traffic, highly populated
areas -- which are held for long-term value and provide a steady stream of
rental income.

Operating Results
(in thousands, except share and per share data)

Three Months Twelve Months
Ended Ended
December 31, December 31,
Revenues: 2005 2004 2005 2004
Rental income from operating leases $6,816 $3,104 $20,484 $8,200
Earned income from direct
financing leases 508 507 2,030 2,029
Real estate fee income 133 353 485 409
Real estate fee income -
related party 1,219 135 4,588 1,443
Construction revenue 1,636 - 2,302 -
Construction revenue -
related party 1,361 - 2,434 -
Securities commission income 644 688 1,163 2,742
Asset management fee income 128 116 495 361
Interest and other income 191 35 705 82
Total revenues 12,636 4,938 34 ,686 15,266

Expenses:
General and administrative 2,553 1,193 6,356 4,600
Property expense 2,101 630 4,860 1,418
Construction expense 2,784 - 4,283 -
Legal and professional 431 686 1,859 1,646
Securities commissions 476 530 864 2,081
Depreciation and amortization 1,879 763 6,046 1,817
Deferred merger costs - - - 1,682
Total expenses 10,224 3,802 24,268 13,244

Operating income 2,412 1,136 10,418 2,022

Income from merchant development
funds and other affiliates (27) 881 161 1,121
Federal income tax (expense)/benefit 111 (225) (379) (77)
Interest expense (1,691) (1,164) (6,412) (3,290)
Minority interest in income of
consolidated joint ventures (20) (54) (241) (186)

Income (loss) before
discontinued operations 785 574 3,547 (410)

Income (loss) from discontinued
operations 1,863 (906) 3,356 (829)

Gain on sale of real estate
acquired for resale 2,351 68 3,223 1,827

Net income (loss) 4,999 (264) 10,126 588

Distributions paid to class B, C
and D shareholders (2,897 ) (1,366) (9,245) (4,454)

Net income (loss) available to
class A shareholders $2,102 $(1,630) $881 $(3,866)

(in thousands, except share and per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Reconciliation of Income (loss )
before discontinued operations
to Funds From Operations ("FFO"):
Income (loss ) before discontinued
operations $785 $574 $3,547 $(410 )
Income (loss) from discontinued
operations 4,214 (838 ) 6,579 998
Depreciation - from operations 2,210 648 5,952 1,674
Depreciation - from discontinued
operations 177 60 111 297
Adjustments for non-consolidated
affiliates 35 9 100 29
Gain on sale of real estate held
for investment (2,805) (52) (3,400) (137)
Class B, C and D distributions (2,897) (1,366) (9,245) (4,454)
FFO available to class A shares $1,719 $(965 ) $3,644 $(2,003)

Basic and Diluted Per Class A Share Data:
Loss before discontinued
operations $(0.17 $(1.83M
Class C (priced at par value) 4,119,923 $10.

ulearn generalized

DAPDNA-2 is a dynamically reconfigurable processor, capable of changing
its functionality by instantaneously changing its on-chip circuit
configuration. Systems utilizing the dynamic reconfigurability of DAPDNA-2
will start to appear in the market in 2005.4
The DAPDNA-FW II Integrated Development Environment is a richly featured
tool set which supports the entire design process of developing applications
for the DAPDNA-2 dynamically reconfigurable processor , from algorithm design
through validation of the application running on actual hardware. A capability to initialize and read DNA
internal memory is also added.
FFO contributions from this segment totaled approximately $450,000, or
$0.
As of December 31, 2005, we had $61 million in equity capital under
management in four funds. We anticipate asset management fees to
increase 88% in 2006 to $930,000. Additionally, based
on selling non-core assets, the portfolio generated income from discontinued
operations of $4.

In addition to historical information, this press release contains
forward-looking statements under the federal securities law.17
Depreciation and amortization 1.

pickover diagonal

"

New features and major enhancement in DAPDNA-FW II v2. This
compares to fourth quarter 2004 reported FFO loss of $965 thousand or a
loss of $0 .6 million (as
adjusted for non-cash charges to earnings) and dividends to all classes
of common shareholders of $6.17 per share. This compares to
fourth quarter 2004 reported net loss of $1. These three segments collectively contribute to our overall financial
growth and earnings.1
million, comprised of $864,000 in securities commission expense and $1. The non-GAAP financial measures should not be considered as an
alternative to net income as an indication of our operating results, or to net
cash provided by operating activities as a measure of our liquidity.

cubes mathworld

Dynamically reconfigurable processor based on DAPDNA is
designed as a dual-core processor comprised of a high -performance RISC core
and a dynamically reconfigurable processor core, and it is a platform that
provides hardware performance while maintaining software flexibility.0 million;

* Revenues for the fourth quarter 2005 increased to $12.33 per share."

Real Estate Development and Operations

Our real estate development group generated $7. In 2006 we
anticipate merchant development profits to be $2.

Asset Advisory Group

For 20 years we have been raising private capital for our real estate
merchant development partnership funds and building relationships in the
financial planning community, earning fees and sharing in profits from those
activities.7 million, with $1.
Our overall occupancy as of December 31, 2005 was approximately 96. First, as a real estate development and
operating company, we construct, develop, acquire, dispose of, broker , lease
and manage properties for our shareholders as well as for our asset advisory
group and third parties.
Projected FFO is calculated in a method consistent with historical FFO,
and AmREIT considers projected FFO to be an appropriate supplemental measure
when compared with projected EPS.16 1.65)
FFO available to class A
shareholders $0.

durer cubes

This sales figures greatly surpasses the sales target set at the
introduction, and demonstrates the high regard in which large numbers of
customers hold the DAPDNA-2.
IPFlex is upgrading DAPDNA-FW II to provide its customers with an improved
system development environment .

2.28 per share;

* Total FFO available to all common shareholders for the year ended
December 31, 2005 was $12.7 million as compared with revenues of $15. This compares
to a loss of $3.

AmREIT's business model and therefore its financial results are broken
down into three distinct businesses. In a market where cap rates continue to be compressed and
interest rates are on the rise, we will shift focus and grow our asset
advisory group and real estate development group.
Expenses associated with this line of business were approximately $2."

AmREIT updates earnings guidance on a quarterly basis.47) $0.41) ($0.

mathland ivars

DAPDNA-FW II v2. The tool also has new support for C symbol
input, useful for linking DAP source code and DNA Configurations . HOUSTON, AmREIT (Amex: AMY), a Houston-
based real estate investment trust, announced today financial results for the
fourth quarter and year end 2005.9 million and we paid dividends to all classes
of common shareholders of $11.13 to $0.1 million, a 44% annual
increase.9 million allocated to this group), resulting
in net income to our class A shares of $930,000. The information provided in the supplemental package is
unaudited and there can be no assurance that the information will not vary
from the final information for the quarter ended December 31, 2005.

For more information, call Debbie Lucas, Vice President Investor Relations
+ Corporate Communications of AmREIT, at (713) 850-1400, or Chad Braun, Chief
Financial Officer of AmREIT, 713-850-1400.70 $(0. A reconciliation of the projected FFO to
projected EPS per share is provided below:

Projected 2006
Range Historical
High Low 12/31/05
Net (loss)/income available to
class A shareholders ($0.

hypercubes singly

The combination of DAPDNA-FW II and
DAPDNA-2 will reduce system development time drastically. The
DAPDNA series are provided with the DAPDNA-FW II as the integrated software
development environment.64 per share (as adjusted for non-cash charges to earnings);

* Funds from Operations (FFO) available to our Class A shareholders for
the fourth quarter 2005 were $1. Second, we have a portfolio of Irreplaceable Corners(TM), which
provides a solid foundation for our revenue growth through its steady stream
of rental income. "Our business model allows us to be active in up and down
cap rate markets.6 million (net
of construction expense), a 36% expected annual increase .
Expenses associated with our portfolio were approximately $20.0 million in depreciation
and amortization, $5.24) 1.31
Net income (loss) $0.
AmREIT considers FFO to be an appropriate measure of the operating
performance of an equity REIT.45) $0.

durer mathpages

License Sales for DAPDNA-FW II Integrated Development Environment Reach 100: IPFlex Plans a Release of DAPDNA -FW II v2.4 Providing Further Enhancements In Sys

TOKYO, IPFlex Inc.

3.
The asset advisory group reduced FFO by approximately $327,000, or $0.0 million in operating revenue during 2005 , up
123% as compared to the $10.com.19M
Class D (priced at par value) 11,035,482 $10.

A Magic Square of order n is an arrangement of the numbers from 1 to n^2 (n-squared) in an n by n matrix.

cubes jre

4, a tool which simplifies DNA Configuration design and
the development of multiprocessor systems.4 will further enhance the ability to take advantage of
the dynamic reconfigurability, by supporting multiprocessor system design and
verification, and also by providing a functionality to easily create
interdependent DNA Configurations. Enhanced functionality in creating interdependent DNA Configurations
Rather than designing DNA Configurations one by one in their entirety,
it is now possible to design multiple, interdependent DNA
Configurations simultaneously by assigning common resources over
configurations.ipflex.

48) per
share;

* During 2005, we sold 10 non-core assets from our portfolio, generating a
gain on sale of $3.
One property was acquired in Houston, Texas during the second quarter, one in
San Antonio, Texas during the third quarter and one in Dallas, Texas during
the fourth quarter.09) $(1. FFO as disclosed by other REITs may not be
comparable to AmREIT's calculation.

tesseracts mathpages

Multiprocessor system design and validation support
The new release provides design and validation capabilities for
multiprocessor systems. The environment can now handle the design,
functional validation, and debugging of multiple (up to 16) devices
connected via their DNA Direct I /O interfaces. Expanded DNA Control Library
Functions have been added to support passing parameters to DNA
Configurations at run time.

IPFlex, DAPDNA, and Software-to-Silicon are registered trademarks of
IPFlex in Japan.3 million
for 2004, a 127% year over year increase;

* Net income available to our class A common shareholders for the year
ended December 31, 2005 was $881,000, or $0. This represents an
annual increase in dividends of 4. As these funds enter into
liquidation, we expect to receive economic benefit from our profit
participation , after certain preferred returns have been paid to the
partnerships' limited partners. As of
December 31, 2005, we owned 49 properties, located in 15 states.8 million.com.50)
Income (loss) from discontinued
operations 0.

These are called Magic objects.

increment rectangles

The new
features in DAPDNA-FW II v2.6 million or $0.
Approximately 81% of our rental income is derived from multi-tenant, grocery
anchored and lifestyle shopping centers.
"Our balance sheet is conservatively leveraged, with a debt to asset ratio
of 40% based on book value of our assets," said Chad C. The
call will also be available for replay for 60 days by dialing 1-877-660-6853,
account number 286, ID number 191232.
AmREIT's definitions and calculations of non-GAAP financial measures may
differ from those used by other equity REIT's, and therefore may not be
comparable.70

FOR INFORMATION CONTACT:
Debbie Lucas (dlucas@amreit.

The smallest non-trivial case is of order 3.

squares cubes

Expanded DNA Designer capabilities
New features have been added to the DNA Designer, one component of
DAPDNA-FW II, which enables graphical algorithm design.1 million or
$0.1 million, or $0.
Fee income generated during 2005 by this group related to services
provided to third parties and our affiliated asset advisory group totaled $5. Anticipated FFO per share for 2006 from this segment
is budgeted at $0.6 million or
$0. Forward-looking statements are not guarantees of future performance
and involve certain risks and uncertainties, which are difficult to predict.33) $(0.65 (0.26 0.00 $41.

grog pickover

4, and the major enhancements from v2.

Terminology
* DAPDNA : Digital Application Processor / Distributed Network
Architecture
** Dynamically Reconfigurable Processor: A processor capable of
dynamically switching the circuit configuration. For more
information, please visit: http://www.

Information contained in press releases is up-to-date as of the date of
release.4 million. These businesses allow us to
develop and sell properties and generate transactional income for services
provided to grow earnings and value. Revenues are further reduced by the allocation of dividends on our
non-traded shares on a pro-rata basis based on net income contribution of the
segment ($2. Together, this represents over $111 million in active
development projects. As of December 31, 2005, AmREIT has over 1.23 ) $(1.90 $14.00 $110.18 1.

ulearn pickover

Braun, AmREIT's chief
financial officer. As our
existing funds enter into liquidation, they can produce general partner back
end interest, which can provide additional contributions to FFO.3 million square
feet of retail centers in various stages of development or in the pipeline for
both our advisory group and for third parties.

nested mathworld

Using DAPDNA can dramatically
increase programming productivity and cut cost considerably.70 per share. This compares to 2004 where we
reported FFO available to all common shareholders of $6. For the year,
revenues were $34.
Our pipeline of development opportunities for third parties and for our
asset advisory group includes approximately 700,000 square feet under various
stages of development and an additional 600,000 square feet in various stages
of pre-development. Of this, 690,000 square feet is scheduled for completion
in 2006.02 to $0.
The portfolio generated $23. These statements
are based on current expectations, estimates and projections about the
industry and markets in which AmREIT operates, management's beliefs and
assumptions made by management. AmREIT is online at
http:/ /www.

tesseracts jre

IPFlex will begin taking orders on February 9
for DAPDNA-FW II v2. The content of this material is subject to change without prior
notice.
This is a 9% increase over year end 2004 reported FFO of $2. We
anticipate this business to generate total 2006 revenues of $10.1 million for the year. To date, we have sponsored six actively managed income and growth
funds, with the first two having substantially liquidated and generating back
end profit participation to the general partners .
These remaining funds are anticipated to enter their liquidation phases in
2008, 2010, 2011 and 2012, respectively. For the year, this group generated total revenues of
$1.06
per share for the year.
The asset advisory group is anticipated to increase its contribution to FFO as
we grow equity under management from the current $61 million to an anticipated
critical mass of $250 million within the next twenty-four months.3 million generated in 2004.
FFO contributions from the portfolio totaled approximately $3.59 a share, or approximately 81% of total 2006 FFO.
Consistent with our continued strategy of selling non-core assets, we sold
eight single tenant properties during the fourth quarter of 2005, representing
approximately 91,000 square feet. AmREIT
may, but assumes no obligation to, update information in the supplemental
package from time to time. The purchase of any securities may only be made pursuant to a
prospectus.amreit.35M
Total 23,705,591 $210. FFO is not defined by GAAP and
should not be considered as an alternative to net income as an indication of
our operating performance or to net cash provided by operating activities as a
measure of our liquidity.

297 allmath

today announced that sales of
its DAPDNA -FW II Integrated Development Environment has reached 100 licenses.

4.19 per share;

* Net income available to our class A common shareholders for the fourth
quarter 2005 was $2.0
million.8
million (net of construction expense).3 million,
comprised of $4. Since listing on the AMEX in
July 2002, our total assets have grown from a book value of $32 million to
$315 million, and equity within our asset advisory group has grown from $15
million to $61 million.28 ) $0.

The sum of any row, any column, or any main diagonal must be the same.

jre souce

3, are
listed below .2 million in gains on sale;

* The Board of Trust Managers declared dividends of $0.8 million (including
discontinued operations and net of construction expense) in revenue during
2005, up 152% as compared to the $3.2 million related to securities commissions earned on
sales of units in our merchant development funds and $495,000 related to
recurring asset management fees.
During the year we acquired three shopping center properties, representing
approximately 255,000 square feet, for an investment of over $110 million. The sale generated a gain of approximately $2.amreit .
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy any public or private securities from the
company.

The same idea can be extended to other shapes such as stars, cubes, circles, and so on.

hypercubes ivars

The DNA Direct I/O
interface provides total I/O bandwidth of 32 Gbps.9 million for the same period in 2004. Additionally, we sold six properties
merchant development properties that were held for re-sale, generating
$3.

* Total assets increased from a book value of $203 million to a book value
of $315 million for the year, a 55% increase. First, as a real estate development and
operating company we create value by providing construction, development,
acquisition, disposition, brokerage, leasing and property management services
to our own portfolio, to third parties, and to our affiliated asset advisory
group.
Expenses associated with this line of business were approximately $5.
This is a recurring and dependable income stream that supports the monthly
dividends. Three of the properties were located in
Texas, one in Minnesota, one in Missouri, one in Louisiana, one in Mississippi
and one in Colorado. Braun, AmREIT's chief
financial officer. Second, we have an asset advisory group which raises
private capital for and generates fees from our merchant development
partnership funds.19)

FFO $0.18
Less gain on sale of real estate - - (0.

diagonal nested

Debugging support at DFC source code level
Source-level debug support for the Data Flow C (DFC), extended C
language, has been added to DNA Designer .

About IPFlex
IPFlex develops dynamically reconfigurable processors and its integrated
development software. Anticipated FFO per share for 2006 from this segment is
budgeted at $0 .

Portfolio of Irreplaceable Corners

Our portfolio acts as the primary source of recurring income to our
business model, contributing approximately 66% in total revenues, and consists
of premier retail properties typically located on "Main and Main"
intersections in high-traffic , highly populated affluent areas.6 million during 2005.

Conference Call
AmREIT will hold its quarterly conference call to discuss fourth quarter
and year end results Thursday, March 16, at 10:00 am Central Time (11:00 am
Eastern Time).71 $0.

cubes souce

1. Thus, users can
leverage their existing intellectual properties. Following are the financial highlights:

* Funds from Operations (FFO) available to our Class A shareholders for
the year ended December 31, 2005 were $3.6 million or ($0. Finally, we have an asset advisory group that has
historically raised private capital for our merchant development partnership
funds.3 million allocated to this group), resulting in net income to our
class A shares of $450,000.
Our merchant development program, which buys and builds properties with
the intent to sell, generated profits of $3.amreit . A copy of the company's fourth
quarter and year end 2005 supplemental information will be available on the
company's web site at http://www.

About AmREIT
AmREIT (Amex: AMY) is a growing real estate company that has delivered
results to our investors for 21 years.
AmREIT calculates its FFO in accordance with this definition.

cubes orbits

5.27 per share.2%. "The combination of great real estate assets and
conservative leverage gives us great opportunity and flexibility during 2006 . Interested parties are encouraged to access the live webcast by
visiting the investor relations page of AmREIT's website at
http://www.com or by written request to Debbie
Lucas, Investor Relations , AmREIT, 8 Greenway Plaza, Suite 1000, Houston,
Texas 77046. Past performance is not indicative of future
returns. The National Association of Real Estate
Investment Trusts ("NAREIT") defines FFO as net income computed in accordance
with generally accepted accounting principles ("GAAP"), excluding gains or
losses from sales of property, plus real estate depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint ventures.77 $0.