Associated Estates Announces Pricing of Common Share Offering

CLEVELAND, Sept. 28 /PRNewswire-FirstCall/ -- Associated Estates Realty Corporation (NYSE: AEC, Nasdaq: AEC) today announced the pricing of a public offering of 8,000,000 of its common shares at a price of $13.60 per share, for net proceeds of approximately $104.0 million after the underwriting discount and estimated offering expenses (or approximately $119.6 million if the underwriters' over-allotment option is exercised in full). Associated Estates has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 of its common shares to cover over-allotments, if any. The offering is expected to close on October 1, 2010. All of the shares were offered by Associated Estates and will be issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission.

Associated Estates intends to use the net proceeds received from the offering to fund property acquisitions, to repay indebtedness and for general corporate purposes. Pending application for the foregoing purposes, Associated Estates intends to use the net proceeds to temporarily repay borrowings outstanding under its unsecured revolving credit facility.

Citi, Raymond James and Wells Fargo Securities served as joint book-running managers, and Baird, The Benchmark Company, FBR Capital Markets, Janney Montgomery Scott, Keefe, Bruyette & Woods, The Huntington Investment Company, Piper Jaffray and PNC Capital Markets LLC served as co-managers for the offering. A final prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission. Copies of the final prospectus supplement, when available, may be obtained from Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220; Attention: Prospectus Department; Telephone: 800-831-9146 or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, Telephone: 800-248-8863.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement forming part of the effective shelf registration statement.

Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000. The Company is headquartered in Richmond Heights, Ohio. Associated Estates' portfolio consists of 51 properties containing 13,234 units located in eight states.

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SOURCE Associated Estates Realty Corporation

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